Local Bounti Corp. (NYSE:LOCL) shares are retreating during Thursday’s premarket session. This move follows a period of intense price action for the agriculture firm.

Nasdaq futures are down 0.27% while S&P 500 futures have shed 0.24%.

Market Corrects After Massive Rally

The decline is primarily a correction following extreme volatility. The stock topped at $3.03 on Tuesday. This represented a 98.03% surge from Monday’s $1.53 level. Traders are now locking in profits after the rapid vertical move.

Mixed Earnings Impact Sentiment

Last month, the company reported mixed fourth-quarter and full-year 2025 financial results which highlighted a 27% annual revenue growth alongside improved net loss and adjusted EBITDA.

However, quarterly sales of $12.5 million missed the $15.0 million consensus. The company reported a loss per share of 38 cents versus the consensus loss of 60 cents.

Management Focuses on EBITDA

CEO Kathleen Valiasek remains optimistic about the company’s trajectory. Valiasek stated,” Achieving positive adjusted EBITDA remains our highest priority.”

Scaling Controlled Environment Agriculture

Local Bounti continues to ramp up facilities in Georgia, Texas, and Washington. These sites drove a 24% year-over-year sales increase. Valiasek noted that retailers are now seeking “long-term supply partnerships” as the market shifts.

Technical Analysis

Local Bounti is sitting in the upper half of its 52-week range of 98 cents to $4. The stock is trading 54.3% above its 20-day simple moving average (SMA) and 29.3% above its 100-day SMA.

The relative strength index (RSI), a momentum gauge, is 76.54.

Even with the recent strength, the longer-term backdrop still carries baggage from the death cross in December (the 50-day SMA below the 200-day SMA), which can keep longer-term investors cautious on rallies.

Over the last 12 months, the stock is up 26.61%.

  • Key Resistance: $2.50
  • Key Support: $2

LOCL Stock Price Activity: Local Bounti shares were down 16.30% at $2.320 during premarket trading on Thursday, according to Benzinga Pro data.

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