Gevo (NASDAQ:GEVO) Trading 12.9% Higher - Here's Why

Key Points

• Gevo, Inc. saw a significant stock increase of 12.9%, trading at $2.24 after closing at $1.98, despite a 67% drop in average trading volume.
• Wall Street analysts have mixed ratings on Gevo, with a consensus target price of $8.13, reflecting a range of opinions from "buy" to "hold".
• The company reported a revenue of $43.41 million for the last quarter, slightly below analyst expectations, and demonstrated a negative return on equity of 12.04%.

Gevo, Inc. (NASDAQ:GEVO - Get Free Report) was up 12.9% during mid-day trading on Tuesday . The company traded as high as $2.16 and last traded at $2.24. Approximately 1,644,585 shares traded hands during trading, a decline of 67% from the average daily volume of 4,981,714 shares. The stock had previously closed at $1.98.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented 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 Gevo from a "strong sell" rating to a "hold" rating in a research report on Wednesday, August 13th. Wall Street Zen raised Gevo from a "sell" rating to a "hold" rating in a research report on Saturday, September 13th. Finally, UBS Group lifted their price target on Gevo from $1.15 to $2.25 and gave the stock a "neutral" rating in a research report on Wednesday, September 17th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Gevo currently has an average rating of "Hold" and a consensus target price of $8.13.

Gevo Stock Performance

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 has a market capitalization of $501.82 million, a price-to-earnings ratio of -7.94 and a beta of 2.18. The stock's 50 day moving average is $1.61 and its 200 day moving average is $1.36.

Gevo (NASDAQ:GEVO - Get Free Report) last announced its earnings results on Monday, August 11th. The energy company reported $0.01 EPS for the quarter, beating analysts' consensus estimates 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 firm had revenue of $43.41 million for the quarter, compared to analysts' expectations of $43.69 million. On average, analysts predict that Gevo, Inc. will post -0.42 earnings per share for the current year.

Insiders Place Their Bets

In other Gevo news, Director Gary W. Mize sold 91,459 shares of Gevo stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $1.68, for a total value of $153,651.12. Following the completion of the sale, the director owned 388,326 shares in the company, valued at $652,387.68. The trade was a 19.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Paul D. Bloom sold 75,000 shares of the stock in a transaction dated Wednesday, September 17th. The stock was sold at an average price of $2.01, for a total transaction of $150,750.00. Following the transaction, the insider owned 923,591 shares in the company, valued at approximately $1,856,417.91. The trade was a 7.51% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 756,885 shares of company stock valued at $1,069,634. 4.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Gevo

Large investors have recently made changes to their positions in the business. Geode Capital Management LLC lifted its holdings in shares of Gevo by 104.5% during 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 acquiring an additional 2,873,940 shares in the last quarter. Millennium Management LLC boosted its position in shares of Gevo by 1.9% in the first quarter. Millennium Management LLC now owns 3,278,261 shares of the energy company's stock worth $3,803,000 after buying an additional 61,919 shares during the period. Goldman Sachs Group Inc. grew its stake in shares of Gevo by 11.8% in 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 buying an additional 123,170 shares in the last quarter. Bank of America Corp DE raised its holdings in shares of Gevo by 160.7% during the 4th quarter. Bank of America Corp DE now owns 360,559 shares of the energy company's stock valued at $754,000 after buying an additional 222,237 shares during the period. Finally, Two Sigma Investments LP lifted its position in Gevo by 671.3% during the 4th quarter. Two Sigma Investments LP now owns 329,928 shares of the energy company's stock worth $690,000 after acquiring an additional 287,150 shares in the last quarter. Institutional investors and hedge funds own 35.17% of the company's stock.

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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