Gevo (NASDAQ:GEVO) Stock Rating Lowered by Wall Street Zen

Key Points

• Gevo has been downgraded from a "hold" rating to a "sell" rating by Wall Street Zen, reflecting analysts' decreasing confidence in the stock's performance.
• Despite the downgrade, HC Wainwright maintains a "buy" rating for Gevo with a price target of $14, while the overall consensus rating remains a "Hold" with a price target of $7.58.
• Gevo recently reported earnings of $0.01 per share, beating estimates, but faced a negative net margin of 72.76%, raising concerns about its financial viability.

Gevo (NASDAQ:GEVO - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Sunday.

Several other research firms have also recently issued reports on GEVO. HC Wainwright reiterated a "buy" rating and issued a $14.00 price objective on shares of Gevo in a report on Friday, May 30th. Zacks Research upgraded shares of Gevo from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 13th. One analyst has rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $7.58.

Gevo Trading Up 7.5%

Gevo stock opened at $1.73 on Friday. The company has a quick ratio of 2.10, a current ratio of 2.33 and a debt-to-equity ratio of 0.29. The firm has a 50-day moving average price of $1.45 and a two-hundred day moving average price of $1.33. The firm has a market capitalization of $418.38 million, a price-to-earnings ratio of -6.65 and a beta of 2.67. Gevo has a 52-week low of $0.6703 and a 52-week high of $3.39.

Gevo (NASDAQ:GEVO - Get Free Report) last posted 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 firm had revenue of $43.41 million during 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%. Sell-side analysts expect that Gevo will post -0.42 earnings per share for the current year.

Insider Buying and Selling at Gevo

In related news, COO Christopher Michael Ryan sold 42,499 shares of the stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $1.23, for a total transaction of $52,273.77. Following the completion of the sale, the chief operating officer directly owned 1,633,621 shares of the company's stock, valued at $2,009,353.83. This represents a 2.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Oluwagbemileke Yusuf Agiri sold 57,651 shares of the stock in a transaction that occurred on Wednesday, August 20th. The shares were sold at an average price of $1.63, for a total transaction of $93,971.13. Following the sale, the chief financial officer directly owned 277,835 shares of the company's stock, valued at approximately $452,871.05. This represents a 17.18% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,123,464 shares of company stock valued at $1,475,392. Corporate insiders own 6.80% of the company's stock.

Institutional Trading of Gevo

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. International Assets Investment Management LLC acquired a new stake in Gevo during the second quarter valued at approximately $26,000. Raymond James Financial Inc. acquired a new stake in shares of Gevo during the fourth quarter valued at approximately $27,000. BNP Paribas Financial Markets raised its holdings in shares of Gevo by 138.1% during the second quarter. BNP Paribas Financial Markets now owns 20,927 shares of the energy company's stock valued at $28,000 after acquiring an additional 12,136 shares during the period. Legal & General Group Plc acquired a new stake in shares of Gevo during the second quarter valued at approximately $28,000. Finally, IHT Wealth Management LLC acquired a new stake in shares of Gevo during the fourth quarter valued at approximately $29,000. 35.17% of the stock is 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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