Gevo (NASDAQ:GEVO) Trading Down 8% - What's Next?

Key Points

• Shares fell 8% intraday to $2.51 on Wednesday with 2.06M shares traded (about 41% below the average), and the stock sits near its 50- and 200-day moving averages (~$2.08 and $2.12) with a market cap of roughly $584M.
• Analysts hold a consensus rating of "Hold" with an average target of $6.42; coverage is mixed (2 Buy, 2 Hold, 1 Sell) and recent notes include a downgrade by Wall Street Zen and a reiterated sell from Weiss Ratings while Northland stayed "Outperform" at $3.
• Insiders have been net sellers—137,650 shares (~$322K) sold in the last 90 days, including a 107,100-share sale by a director on March 12—while Gevo slightly beat Q4 EPS and revenue estimates but remains unprofitable and is forecast to post negative EPS for the year.

Gevo, Inc. (NASDAQ:GEVO - Get Free Report)'s share price fell 8% during mid-day trading on Wednesday . The company traded as low as $2.46 and last traded at $2.5110. 2,056,864 shares changed hands during mid-day trading, a decline of 41% from the average session volume of 3,463,058 shares. The stock had previously closed at $2.73.

Wall Street Analyst Weigh In

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

Gevo Price Performance

The company has a market capitalization of $583.98 million, a price-to-earnings ratio of -18.58 and a beta of 1.51. The company has a current ratio of 1.82, a quick ratio of 1.58 and a debt-to-equity ratio of 0.35. The company has a 50 day moving average price of $2.08 and a 200 day moving average price of $2.12.

Gevo (NASDAQ:GEVO - Get Free Report) last issued its quarterly earnings results on Thursday, March 5th. The energy company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.03) by $0.01. The business had revenue of $45.35 million for the quarter, compared to analyst estimates of $43.52 million. Gevo had a negative return on equity of 7.20% and a negative net margin of 21.07%. As a group, equities research analysts forecast that Gevo, Inc. will post -0.42 earnings per share for the current year.

Insider Transactions at Gevo

In other news, insider Lindsay Clinton Fitzgerald sold 20,000 shares of the firm's stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $2.51, for a total value of $50,200.00. Following the transaction, the insider owned 212,199 shares of the company's stock, valued at approximately $532,619.49. This trade represents a 8.61% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Gary W. Mize sold 107,100 shares of Gevo stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $2.33, for a total transaction of $249,543.00. Following the sale, the director owned 281,226 shares of the company's stock, valued at approximately $655,256.58. This represents a 27.58% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 137,650 shares of company stock worth $321,959. Corporate insiders own 4.00% of the company's stock.

Institutional Trading of Gevo

Several institutional investors and hedge funds have recently made changes to their positions in the business. Millennium Management LLC lifted its stake in shares of Gevo by 1.9% in the 1st quarter. Millennium Management LLC now owns 3,278,261 shares of the energy company's stock valued at $3,803,000 after purchasing an additional 61,919 shares during the period. Goldman Sachs Group Inc. grew 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 worth $1,351,000 after purchasing an additional 123,170 shares during the period. Geode Capital Management LLC increased its holdings in Gevo by 104.5% in the second 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 during the last quarter. Intech Investment Management LLC bought a new stake in Gevo in the second quarter valued at about $164,000. Finally, JPMorgan Chase & Co. lifted its stake in Gevo by 915.8% in the second quarter. JPMorgan Chase & Co. now owns 121,305 shares of the energy company's stock valued at $160,000 after buying an additional 109,363 shares during the period. Institutional investors 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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