ENGLEWOOD, CO— Gevo , Inc. (NASDAQ:GEVO) recently saw a notable transaction from its Chief Customer Marketing and Brand Officer, Andrew Shafer. According to an SEC filing, Shafer sold 26,911 shares of the company's common stock on November 5, 2024, amounting to a total of $63,660. The shares were sold at an average price of $2.3656, with individual transactions ranging from $2.300 to $2.371 per share.
The sale was executed under a 10b5-1 trading plan, which Shafer adopted on March 20, 2024. This plan allows insiders to set up a predetermined schedule for selling stocks, helping to avoid potential accusations of insider trading.
Following the transaction, Shafer retains 332,430 shares directly. Additionally, he owns 1,946.29 shares indirectly through a 401(k) plan, having disposed of a small number of shares to cover administrative fees between May 22 and November 5, 2024.
In other recent news, Gevo Inc. has secured a conditional commitment from the U.S. Department of Energy's Loan Programs Office for a loan guarantee of up to $1.63 billion for its Net-Zero 1 project in South Dakota. The loan guarantee was highlighted by H.C. Wainwright, who maintained a Buy rating for Gevo. The project aims to produce sustainable aviation fuel, protein, and animal feed, and corn oil.
Simultaneously, Gevo Inc. has regained compliance with Nasdaq's minimum bid price requirement and acquired Cultivate Agricultural Intelligence for $6 million, which is expected to generate $1.7 million in revenue for 2024. The company also monetized approximately $20 million in Investment Tax Credits from its renewable natural gas production facility operations.
These recent developments underline Gevo's growth trajectory and its commitment to renewable energy and sustainable products. The company's advancements are in line with the broader industry trend towards sustainability and reducing carbon emissions.
InvestingPro Insights
Gevo, Inc.'s recent insider transaction occurs against a backdrop of mixed financial indicators, as revealed by InvestingPro data. The company's market capitalization stands at $397.24 million, reflecting its current position in the renewable chemicals and biofuels sector.
InvestingPro Tips highlight that Gevo "holds more cash than debt on its balance sheet," which could be seen as a positive sign for the company's financial stability. This aligns with another tip indicating that "liquid assets exceed short term obligations," potentially providing the company with financial flexibility.
However, investors should note that Gevo is "quickly burning through cash" and "suffers from weak gross profit margins." This is corroborated by the InvestingPro data showing a negative gross profit margin of -105.98% for the last twelve months as of Q2 2024. The company's revenue growth of 98.34% over the same period is impressive, but it's important to consider this alongside the profitability challenges.
The stock's recent performance has been volatile, with InvestingPro data showing a significant -32.55% return over the past week, contrasting sharply with a 245.38% return over the last three months. This volatility is consistent with the InvestingPro Tip that "stock price movements are quite volatile."
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Gevo, providing a deeper understanding of the company's financial health and market position.
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