Gevo (NASDAQ:GEVO) Shares Up 7.3% - Here's Why

Key Points

• Shares rose 7.3% on Monday to about $2.71 (intraday high $2.76) on lighter-than-average volume of ~1.9M vs a 3.23M average.
• Gevo posted an EPS of ($0.02) that beat estimates by $0.01 and revenue of $45.35M (vs. $43.52M est.), but still shows negative margins and a negative PE; analysts' consensus rating is Hold with a $6.42 price target.
• Insiders have been selling (137,650 shares in the last 90 days), while large institutions — including Geode, Nuveen, Invesco and Goldman — have markedly increased stakes, leaving institutions owning about 35.17% of the stock.

Shares of Gevo, Inc. (NASDAQ:GEVO - Get Free Report) traded up 7.3% during trading on Monday . The stock traded as high as $2.76 and last traded at $2.7050. 1,914,995 shares were traded during mid-day trading, a decline of 41% from the average session volume of 3,233,267 shares. The stock had previously closed at $2.52.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the company. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Gevo in a research note on Thursday, January 22nd. Northland Securities reaffirmed an "outperform" rating and set a $3.00 price objective on shares of Gevo in a research note on Wednesday, December 31st. Finally, Wall Street Zen cut Gevo from a "hold" rating to a "sell" rating in a research report on Saturday, March 7th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Gevo has a consensus rating of "Hold" and a consensus price target of $6.42.

Gevo Price Performance

The company has a 50-day moving average of $2.05 and a two-hundred day moving average of $2.11. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.82 and a quick ratio of 1.58. The stock has a market capitalization of $661.69 million, a PE ratio of -20.96 and a beta of 1.51.

Gevo (NASDAQ:GEVO - Get Free Report) last released its quarterly earnings data on Thursday, March 5th. The energy company reported ($0.02) EPS for the quarter, topping analysts' consensus estimates of ($0.03) by $0.01. Gevo had a negative return on equity of 7.20% and a negative net margin of 21.07%.The company had revenue of $45.35 million for the quarter, compared to the consensus estimate of $43.52 million. Sell-side analysts predict that Gevo, Inc. will post -0.42 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Gary W. Mize sold 107,100 shares of the stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $2.33, for a total value of $249,543.00. Following the completion of the sale, the director directly owned 281,226 shares in the company, valued at approximately $655,256.58. This represents a 27.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Lindsay Clinton Fitzgerald sold 20,000 shares of the company's stock in a transaction dated Thursday, March 12th. The stock was sold at an average price of $2.51, for a total value of $50,200.00. Following the completion of the sale, the insider directly owned 212,199 shares of the company's stock, valued at $532,619.49. The trade was a 8.61% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 137,650 shares of company stock valued at $321,959. 6.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. First Bank & Trust purchased a new position in Gevo in the third quarter valued at about $6,007,000. Geode Capital Management LLC raised its position in shares of Gevo by 104.5% in the 2nd quarter. Geode Capital Management LLC now owns 5,623,004 shares of the energy company's stock valued at $7,424,000 after purchasing an additional 2,873,940 shares in the last quarter. Nuveen LLC boosted its stake in shares of Gevo by 107.7% during the 4th quarter. Nuveen LLC now owns 4,138,251 shares of the energy company's stock valued at $8,277,000 after buying an additional 2,146,019 shares during the last quarter. Invesco Ltd. boosted its stake in shares of Gevo by 41.3% during the 4th quarter. Invesco Ltd. now owns 5,878,866 shares of the energy company's stock valued at $11,758,000 after buying an additional 1,719,381 shares during the last quarter. Finally, Goldman Sachs Group Inc. grew its position in shares of Gevo by 118.1% during the fourth quarter. Goldman Sachs Group Inc. now owns 2,859,441 shares of the energy company's stock worth $5,719,000 after buying an additional 1,548,302 shares in the last quarter. Institutional investors and hedge funds own 35.17% of the company's stock.

Gevo Company Profile

Gevo, Inc NASDAQ: GEVO is a renewable chemicals and biofuels company that develops and produces low-carbon alternatives to petroleum-based products. The company's core technology platform converts fermentable sugars into isobutanol, which can be further processed into sustainable aviation fuel (SAF), renewable gasoline, diesel, and jet fuel. Gevo's integrated biorefinery model combines fermentation, recovery, and downstream processing to deliver scalable, drop-in replacements for conventional fossil-derived hydrocarbons.

Gevo's primary products include isobutanol, a four-carbon alcohol used as a building block for various fuels and chemicals, and hydrocarbon fuels that meet ASTM specifications for aviation and road transport.

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