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WHITE PLAINS, N.Y. - OPAL Fuels Inc. (NASDAQ:OPAL), a company specializing in renewable natural gas (RNG) and renewable electricity, announced a significant change in its shareholder voting structure. Fortistar LLC, the controlling shareholder, has converted 50 million of its Class D common stock into Class B common stock. The move reduces Fortistar’s voting power, as each Class D share previously held five votes, compared to one vote per Class B share. The announcement comes as OPAL trades at $1.40 per share, having declined over 71% in the past year. According to InvestingPro analysis, the company’s market capitalization stands at approximately $240 million.
This conversion follows a previous exchange of over 120 million Class D shares by Fortistar. According to Mark Comora, Chairman of OPAL Fuels, the latest share conversion is intended to support the inclusion of OPAL Fuels’ Class A common stock in various stock market indices. Such indices often form the basis for broad-based mutual funds and exchange-traded index funds. InvestingPro data reveals the company maintains a healthy current ratio of 1.13 and expects net income growth this year, though it’s currently trading at a high earnings multiple of 69.5x.
However, the company noted that inclusion in stock market indices is not guaranteed and is beyond its control. Moreover, there is no assurance that such inclusion would impact the share price of OPAL Fuels’ Class A common stock. Based on comprehensive Fair Value analysis from InvestingPro, which offers detailed research reports on over 1,400 US stocks, OPAL currently appears undervalued. The platform’s analysis also indicates the company’s RSI suggests oversold conditions, with 12 additional exclusive ProTips available to subscribers.
OPAL Fuels is recognized for its role in capturing biogas to produce low carbon intensity RNG and renewable electricity. The company also markets and distributes RNG for use in heavy-duty trucking and other industrial sectors that are challenging to decarbonize. Financial data shows the company generated revenue of approximately $300 million in the last twelve months, with a solid revenue growth rate of 17%.
The information regarding the share conversion and its potential impact on stock market index inclusion is based on a press release statement from OPAL Fuels. The company has cautioned that forward-looking statements within the press release are subject to various risks and uncertainties, and actual results may differ materially from those projected. OPAL Fuels has emphasized that the statements should not be overly relied upon and are made as of the date of the press release. The company disclaims any obligation to update these forward-looking statements except as required by law.
In other recent news, Opal Fuels Inc. reported a challenging fourth quarter for 2024, with earnings and revenue falling short of expectations. The company announced an actual EPS of -$0.05, missing the anticipated $0.18, and revenue of $80.02 million, which was below the forecasted $91.24 million. These results reflect a net loss of $5.4 million for the quarter. Despite these setbacks, Opal Fuels increased its renewable natural gas projects from 2 to 11 in 2024, indicating a commitment to expanding its operations. The company has provided guidance for 2025, projecting an adjusted EBITDA between $90 million and $110 million. Additionally, Opal Fuels expects RNG production to rise significantly in 2025. Analyst firms have not provided any recent upgrades or downgrades, but the company faces uncertainties in federal incentives and market competition. Opal Fuels’ management remains optimistic about the potential growth in the RNG market.
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