Gevo (NASDAQ:GEVO) Shares Up 8.6% - Should You Buy?

Key Points

• Gevo's shares rose **8.6%** on Monday, with the stock reaching a high of **$2.27** before closing at **$2.33** despite a significant decrease in trading volume.
• Wall Street analysts have mixed views on Gevo, with one analyst rating it a **Buy**, two a **Hold**, and one a **Sell**, and an average price target of **$8.13**.
• Gevo reported a **$0.01 EPS** for the latest quarter, surpassing forecasts, while also experiencing a negative return on equity of **12.04%** and a net margin of **-72.76%**.

Gevo, Inc. (NASDAQ:GEVO - Get Free Report) shares traded up 8.6% on Monday . The company traded as high as $2.27 and last traded at $2.33. 2,095,428 shares changed hands during mid-day trading, a decline of 59% from the average session volume of 5,057,245 shares. The stock had previously closed at $2.14.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on GEVO shares. Wall Street Zen upgraded shares of Gevo from a "sell" rating to a "hold" rating in a report on Saturday, September 13th. Zacks Research raised shares of Gevo from a "strong sell" rating to a "hold" rating in a research note on Wednesday, August 13th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Gevo in a research note on Saturday, September 27th. Finally, UBS Group boosted their price target on shares of Gevo from $1.15 to $2.25 and gave the stock a "neutral" rating in a research note on Wednesday, September 17th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $8.13.

Gevo Stock Performance

The stock has a fifty day moving average of $1.71 and a 200-day moving average of $1.40. The stock has a market cap of $536.88 million, a PE ratio of -8.54 and a beta of 2.13. The company has a quick ratio of 2.10, a current ratio of 2.33 and a debt-to-equity ratio of 0.29.

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

Insider Activity

In other Gevo news, CEO Patrick R. Gruber sold 120,304 shares of the stock in a transaction on Friday, August 1st. The stock was sold at an average price of $1.25, for a total value of $150,380.00. Following the completion of the transaction, the chief executive officer owned 3,963,164 shares in the company, valued at approximately $4,953,955. This represents a 2.95% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, COO Christopher Michael Ryan sold 43,964 shares of the business's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $1.25, for a total transaction of $54,955.00. Following the sale, the chief operating officer owned 1,676,120 shares in the company, valued at $2,095,150. The trade was a 2.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 752,956 shares of company stock valued at $1,064,408 over the last ninety days. 4.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Gevo

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. International Assets Investment Management LLC acquired a new stake in shares of Gevo in the 2nd quarter worth approximately $26,000. BNP Paribas Financial Markets boosted its position in Gevo by 138.1% during the second quarter. BNP Paribas Financial Markets now owns 20,927 shares of the energy company's stock worth $28,000 after purchasing an additional 12,136 shares in the last quarter. Legal & General Group Plc acquired a new stake in Gevo in the second quarter valued at $28,000. Engineers Gate Manager LP purchased a new position in shares of Gevo in the second quarter valued at $30,000. Finally, Ameritas Investment Partners Inc. acquired a new position in shares of Gevo during the 2nd quarter worth $31,000. 35.17% of the stock is currently owned by institutional investors and hedge funds.

Gevo Company Profile

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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