Gevo (NASDAQ:GEVO) Shares Up 5.6% - Should You Buy?

Key Points

• Gevo's stock price increased by 5.6% to $2.74, but trading volume was down by 45%, indicating a significant drop in investor activity compared to its average.
• Analysts' ratings on Gevo are mixed, with one holding a Buy rating, an average rating of Hold, and a consensus price target of $8.13.
• Gevo reported a revenue of $43.41 million for the last quarter, slightly underperforming estimates, and has an average predicted EPS of -0.42 for the current year.

Gevo, Inc. (NASDAQ:GEVO - Get Free Report)'s stock price shot up 5.6% on Thursday . The stock traded as high as $2.80 and last traded at $2.74. 2,855,751 shares were traded during trading, a decline of 45% from the average session volume of 5,192,199 shares. The stock had previously closed at $2.59.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on GEVO. Weiss Ratings restated a "sell (d-)" rating on shares of Gevo in a research report on Wednesday, October 8th. HC Wainwright reiterated a "buy" rating on shares of Gevo in a research report on Wednesday. Wall Street Zen raised shares of Gevo from a "sell" rating to a "hold" rating in a research note on Saturday, September 13th. UBS Group boosted their price objective on shares of Gevo from $1.15 to $2.25 and gave the company a "neutral" rating in a research note on Wednesday, September 17th. Finally, Zacks Research raised shares of Gevo from a "strong sell" rating to a "hold" rating in a research note on Wednesday, August 13th. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $8.13.

Gevo Stock Performance

The stock has a market capitalization of $634.83 million, a price-to-earnings ratio of -10.10 and a beta of 2.13. The company has a current ratio of 2.33, a quick ratio of 2.10 and a debt-to-equity ratio of 0.29. The stock's 50 day moving average is $1.87 and its 200 day moving average is $1.46.

Gevo (NASDAQ:GEVO - Get Free Report) last released its earnings results on Monday, August 11th. The energy company reported $0.01 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.06) by $0.07. The company had revenue of $43.41 million for the quarter, compared to analyst estimates of $43.69 million. Gevo had a negative net margin of 72.76% and a negative return on equity of 12.04%. On average, analysts predict that Gevo, Inc. will post -0.42 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Gary W. Mize sold 91,459 shares of the stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $1.68, for a total transaction of $153,651.12. Following the transaction, the director directly owned 388,326 shares in the company, valued at $652,387.68. This represents a 19.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, COO Christopher Michael Ryan sold 100,000 shares of the stock in a transaction dated Wednesday, October 15th. The stock was sold at an average price of $2.82, for a total transaction of $282,000.00. Following the transaction, the chief operating officer owned 1,531,938 shares in the company, valued at approximately $4,320,065.16. The trade was a 6.13% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 952,956 shares of company stock worth $1,596,408 in the last 90 days. 6.80% of the stock is currently owned by corporate insiders.

Institutional Trading of Gevo

Institutional investors and hedge funds have recently bought and sold shares of the business. Atria Wealth Solutions Inc. purchased a new stake in shares of Gevo during the first quarter valued at approximately $174,000. OMERS ADMINISTRATION Corp raised its stake in shares of Gevo by 114.5% during the first quarter. OMERS ADMINISTRATION Corp now owns 289,300 shares of the energy company's stock valued at $336,000 after purchasing an additional 154,400 shares during the period. Y Intercept Hong Kong Ltd purchased a new stake in shares of Gevo during the first quarter valued at approximately $36,000. Goldman Sachs Group Inc. raised its stake in shares of Gevo by 11.8% during the first quarter. Goldman Sachs Group Inc. now owns 1,164,499 shares of the energy company's stock valued at $1,351,000 after purchasing an additional 123,170 shares during the period. Finally, Deutsche Bank AG raised its stake in shares of Gevo by 5,808.4% during the first quarter. Deutsche Bank AG now owns 40,709 shares of the energy company's stock valued at $47,000 after purchasing an additional 40,020 shares during the period. Institutional investors and hedge funds own 35.17% of the company's stock.

About Gevo

Gevo, Inc operates as a carbon abatement company. It operates through three segments: Gevo, Agri-Energy, and Renewable Natural Gas. The company focuses on transforming renewable energy into energy-dense liquid hydrocarbons that can be used as renewable fuels. It offers renewable gasoline and diesel, isobutanol, sustainable aviation fuel, renewable natural gas, isobutylene, ethanol, and animal feed and protein.

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