Gevo CEO sells over $64k of company stock

Published 07/08/2024, 23:36
Gevo CEO sells over $64k of company stock

Gevo , Inc. (NASDAQ:GEVO) Chief Executive Officer Patrick R. Gruber has sold 127,276 shares of company stock, totaling approximately $64,388, according to a recent SEC filing. The transactions occurred on August 6, 2024, with the shares being sold at a weighted average price of $0.5059.

The reported sales were conducted under a 10b5-1 trading plan, a mechanism that allows company insiders to sell shares at predetermined times to avoid accusations of insider trading. This plan was adopted by Gruber on March 18, 2024. The SEC filing indicated that the shares were sold in multiple transactions with prices ranging from $0.4954 to $0.5262 per share. Following the sale, Gruber still owns a substantial amount of Gevo stock, with 3,922,404 shares remaining in his direct possession.

Additionally, the SEC filing disclosed that Gruber disposed of 20.85 shares of Gevo's common stock under the company's 401(k) plan to cover administrative fees between July 31 and August 6, 2024. These disposals are a routine part of managing 401(k) plan costs.

Investors and interested parties can request more detailed information about the exact number of shares sold at each price within the reported range from Gevo, Inc. upon demand.

The SEC Form 4 filing provides transparency into the trading activities of company insiders, offering investors an insight into executive moves within Gevo, Inc.

In other recent news, the U.S. biofuel industry, including companies like Gevo, Inc., is facing a significant challenge with recent findings suggesting that virtually no ethanol will be eligible for the new sustainable aviation fuel (SAF) subsidies. This is due to the Biden administration's decision to implement stricter climate requirements for the pilot program under the 2022 Inflation Reduction Act. The stringent criteria, including specific climate-friendly farming practices, limit the amount of ethanol that can meet the subsidy criteria.

In other developments, Gevo, Inc. has partnered with ClearFlame Engine Technologies, Inc. to enhance the traceability of decarbonization efforts in the U.S. road freight sector. The initiative aims to authenticate the carbon intensity of biofuels from their agricultural origins to their use in transportation. This partnership will utilize Verity’s carbon accounting software to track environmental attributes from the growth of crops to their processing into low-carbon ethanol.

These are just a few of the recent developments in the biofuel industry. As the sector continues to evolve, it will be interesting to see how these changes impact the industry's future trajectory.

InvestingPro Insights

In the wake of Gevo, Inc. (NASDAQ:GEVO) CEO Patrick R. Gruber's recent stock sale, investors may be seeking deeper insights into the company's financial health and stock performance. According to InvestingPro, Gevo is currently trading at a low Price / Book multiple of 0.21, which could suggest the stock is undervalued relative to the company's book value as of the last twelve months ending Q1 2024.

InvestingPro data also highlights that Gevo has been quickly burning through cash, which is reflected in their negative gross profit margin of -83.08% over the same period. This rapid cash burn could be a concern for investors looking for financial stability in the companies they invest in. Additionally, the stock price has experienced significant volatility, with a 1-week price total return of -11.67% and a 1-year price total return of -67.72%, indicating a challenging period for the company's shareholders.

Despite these challenges, Gevo holds more cash than debt on its balance sheet, which could provide some cushion against financial stress. However, the company's valuation implies a poor free cash flow yield, and analysts do not anticipate Gevo will be profitable this year. For investors considering a deeper dive into Gevo's financials and stock performance, InvestingPro offers a wealth of additional tips—16 in total—that can be accessed to help inform investment decisions. These InvestingPro Tips are available at https://www.investing.com/pro/GEVO.

The metrics and tips provided by InvestingPro can serve as valuable tools for investors looking to understand the risks and opportunities associated with Gevo, especially in light of recent insider trading activity.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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