Gevo Inc. [NASDAQ: GEVO] price plunged by -3.19 percent to reach at -$0.32. The company report on February 24, 2021 that Gevo and HCS Group Sign Strategic Agreement to Produce Renewable Low-Carbon Chemicals and Sustainable Aviation Fuel in Europe.
Gevo, Inc. (“Gevo”) (NASDAQ: GEVO), announced that Gevo and HCS Group GmbH, a long-time customer of Gevo, have signed a project memorandum of understanding (“MOU”) to develop and build a renewable hydrocarbon facility at HCS Group’s site located in Speyer, Germany, which would utilize Gevo’s low-carbon sustainable aviation fuel (“SAF”) technology.
The MOU anticipates a first project that is estimated to produce approximately 60 kMT (22 million gallons per year) of renewable hydrocarbons, advanced renewable fuels, and low-carbon SAF at HCS Group’s Speyer site by the end of 2024. The HCS Group manufacturing center, operated by the Haltermann Carless brand, is strategically located in the geographical center of Europe, at the Rhine river and in the vicinity of Frankfurt airport, offering excellent prerequisites for supplying customers in Europe with SAF, certified under Europe’s Renewable Energy Directive (“EU REDII”), and a portfolio of certified renewable drop-in fuels and specialty chemicals. “This project, developed in technology partnership with Gevo, is a key element of HCS Group’s strategy and our aspiration to be a perpetual pioneer in the area of high-value hydrocarbons, while making a clear contribution to defossilization and the reduction of greenhouse gas emissions. This is a unique opportunity to enter the SAF market as the first commercial producer in Germany, building on our market success with renewable hydrocarbons”, says Henrik Krüpper, Chief Executive Officer HCS Group and adds: “We are excited to enable our customers in the aviation, premium fuels and personal care industries with bio-based solutions to meet their sustainability goals. Using our existing infrastructure in Speyer including our new hydrogenation plant allows us to minimize time-to-market, certification and approval processes, and costs for this first-of-its-kind project.” “Gevo and HCS Group have a long-standing and productive relationship at supplying products to service existing HCS Group customers with renewable chemicals and high-octane products. Given that history, and the need for SAF in Europe, it made strategic sense to develop a joint project in the EU. Gevo’s technology creates the building blocks for making hydrocarbons. We will need to establish several suppliers of our renewable building blocks, throughout EU, made from sugary agricultural residues,” said Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer. Dr. Gruber continued, “Gevo’s technology and business system for producing renewable hydrocarbons for fuels, chemicals, and plastics can be a contributor to fight climate change, get production off a fossil-based system and be at the forefront of future use of residues and waste feedstocks under EU REDII Annex IX in Europe.”.
A sum of 18376320 shares traded at recent session while its average daily volume was at 33.64M shares. Gevo Inc. shares reached a high of $10.50 and dropped to a low of $9.39 until finishing in the latest session at $9.71.
The one-year GEVO stock forecast points to a potential upside of 7.52. The average equity rating for GEVO stock is currently 2.00, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on Gevo Inc. [GEVO]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GEVO shares is $10.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GEVO stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
H.C. Wainwright have made an estimate for Gevo Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on September 07, 2018. The new note on the price target was released on January 09, 2018, representing the official price target for Gevo Inc. stock. Previously, the target price had yet another raise from $4 to $12, while Rodman & Renshaw kept a Buy rating on GEVO stock. On September 26, 2012, analysts decreased their price target for GEVO shares from 9 to 1.
The Average True Range (ATR) for Gevo Inc. is set at 1.80, with the Price to Sales ratio for GEVO stock in the period of the last 12 months amounting to 166.68. The Price to Book ratio for the last quarter was 5.55, with the Price to Cash per share for the same quarter was set at 0.39.
GEVO Stock Performance Analysis:
Gevo Inc. [GEVO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -20.21. With this latest performance, GEVO shares dropped by -17.22% in over the last four-week period, additionally plugging by 683.06% over the last 6 months – not to mention a rise of 543.05% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GEVO stock in for the last two-week period is set at 45.38, with the RSI for the last a single of trading hit 38.71, and the three-weeks RSI is set at 49.69 for Gevo Inc. [GEVO]. The present Moving Average for the last 50 days of trading for this stock 8.40, while it was recorded at 10.62 for the last single week of trading, and 2.90 for the last 200 days.
Insight into Gevo Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Gevo Inc. [GEVO] shares currently have an operating margin of -107.61 and a Gross Margin at -51.54. Gevo Inc.’s Net Margin is presently recorded at -117.04.
Return on Total Capital for GEVO is now -27.80, given the latest momentum, and Return on Invested Capital for the company is -32.87. Return on Equity for this stock declined to -35.54, with Return on Assets sitting at -28.60. When it comes to the capital structure of this company, Gevo Inc. [GEVO] has a Total Debt to Total Equity ratio set at 21.17. Additionally, GEVO Total Debt to Total Capital is recorded at 17.47, with Total Debt to Total Assets ending up at 16.44. Long-Term Debt to Equity for the company is recorded at 0.74, with the Long-Term Debt to Total Capital now at 0.61.
Reflecting on the efficiency of the workforce at the company, Gevo Inc. [GEVO] managed to generate an average of -$502,807 per employee. Receivables Turnover for the company is 29.48 with a Total Asset Turnover recorded at a value of 0.24.Gevo Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 4.70 and a Current Ratio set at 4.90.
GEVO Stock EPS
With the latest financial reports released by the company, Gevo Inc. posted -0.5/share EPS, while the average EPS was predicted by analysts to be reported at -0.53/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 5.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for GEVO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Gevo Inc. go to 25.00%.
Gevo Inc. [GEVO] Insider Position Details
There are presently around $121 million, or 7.90% of GEVO stock, in the hands of institutional investors. The top three institutional holders of GEVO stocks are: VANGUARD GROUP INC with ownership of 4,599,010, which is approximately -43.933% of the company’s market cap and around 0.30% of the total institutional ownership; RENAISSANCE TECHNOLOGIES LLC, holding 3,570,267 shares of the stock with an approximate value of $34.67 million in GEVO stocks shares; and BLACKROCK INC., currently with $17.42 million in GEVO stock with ownership of nearly 22098.453% of the company’s market capitalization.
Positions in Gevo Inc. stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 41 institutional holders increased their position in Gevo Inc. [NASDAQ:GEVO] by around 6,901,280 shares. Additionally, 14 investors decreased positions by around 4,257,455 shares, while 5 investors held positions by with 1,349,542 shares. The mentioned changes placed institutional holdings at 12,508,277 shares, according to the latest SEC report filing. GEVO stock had 28 new institutional investments in for a total of 1,216,391 shares, while 8 institutional investors sold positions of 558,632 shares during the same period.