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On Friday, H.C. Wainwright reaffirmed its Buy rating and $14.00 price target for Gevo , Inc. (NASDAQ:GEVO), currently trading at $1.26, following the company’s release of its fourth-quarter financial results. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics, though investors should note its volatile price movements. Gevo reported a 30% year-over-year increase in revenue to $5.7 million for the fourth quarter of 2024, up from $4.4 million in the same quarter of the previous year. This marked a substantial 190% increase from the $2.0 million revenue in the third quarter of 2024.
The majority of Gevo’s revenue for the quarter stemmed from environmental attributes associated with the production and sale of Renewable Natural Gas (RNG). The company’s operating expenses for the quarter were approximately $21.9 million. InvestingPro data reveals challenging fundamentals, with a gross profit margin of -149.51% over the last twelve months, indicating significant operational hurdles.
Additionally, Gevo generated about $2.8 million from interest and investment income during the quarter. Despite these revenues, the company reported a net loss of approximately $17.9 million, or $0.09 per share. The company’s cash position remained strong, totaling around $259.0 million at the end of the quarter, with InvestingPro highlighting a healthy current ratio of 8.25, indicating strong short-term liquidity. Discover 10+ additional exclusive ProTips and comprehensive analysis in the Pro Research Report, available with an InvestingPro subscription.
In their commentary, H.C. Wainwright analysts highlighted the financial outcomes and reiterated their confidence in the company’s stock with a $14 price target. They pointed to the significant quarterly revenue growth and the substantial cash reserves as key factors in their assessment.
In other recent news, Gevo Inc. reported its financial results for the fourth quarter of 2024, revealing a significant shortfall in both earnings and revenue. The company posted an earnings per share (EPS) of -$0.14, missing the expected -$0.0607, while revenue came in at $1.99 million, far below the forecasted $3.77 million. Despite these challenges, Gevo ended the quarter with $259 million in cash and equivalents. The company is aiming for a positive run-rate adjusted EBITDA by 2025, supported by its ongoing projects in renewable energy. In terms of future growth, Gevo plans to finalize the financial aspects of its Alcohol to Jet (ATJ) 60 project by the end of 2025. The company also targets adjusted EBITDA from its North Dakota plant to range between $30 million and $60 million, with an additional $9 million to $18 million from its renewable natural gas (RNG) operations in 2025. Additionally, Gevo is focusing on monetizing carbon credits and addressing internal control weaknesses in its financial reporting, as discussed in their recent earnings call.
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