The shares of bio-based pest management and plant health products provider Marrone Bio (NASDAQ:MBII) Innovations’ (MBII) have declined in price over the past few months amid challenging weather conditions and supply chain constraints. So, the question becomes, is it wise to buy the stock now as the company advances three novel bioherbicides? Let’s find out.Marrone Bio Innovations, Inc. (MBII) discovers, develops, and commercializes naturally derived technologies for pest management and plant health products used in agricultural, turf and ornamental, and water treatment applications. The Davis, Calif., company announced on September 28 that it is advancing three novel bioherbicides in its research and development pipeline. However, the stock has declined 36.6% in price over the past three months to close yesterday’s trading session at $0.93.
The company has a history of long-term share price weakness. The stock has lost 46.8% over the past three years and 45.5% over the past five years.
MBII announced in February 2021 that it had filed a ‘universal shelf’ registration statement with the SEC, under which it may sell various securities from time to time over three years. While this could help the company raise capital, it could also lead to share dilution. Furthermore, analysts recently made a significant negative revision to their near-term EPS estimates for MBII. So, its near-term prospects look bleak.