Gevo (NASDAQ:GEVO) Shares Decline 5.8% - Should Investors Consider Selling?

Gevo, Inc. (NASDAQ:GEVO) experienced a significant decline in its stock price, dropping 5.8% on Wednesday. The share price fell to a low of $2.27 before closing at $2.29. During the trading session, a total of 2,484,920 shares were exchanged, reflecting an 84% decrease compared to the average volume of 15,364,339 shares. The stock had previously ended the day at $2.43.

Wall Street Analyst Insights

Various analysts have recently shared their perspectives on Gevo's stock performance. UBS Group increased their price target for Gevo shares from $0.85 to $3.25 while maintaining a "neutral" rating in their research report on October 22nd. On the other hand, HC Wainwright reiterated their "buy" rating, setting a price target of $14.00 for the company in a report dated November 13th.

Gevo's Price Performance

The company has a debt-to-equity ratio of 0.13, showcasing a healthy financial position. Its current and quick ratios stand at 8.25 and 8.05, respectively, indicating strong liquidity. The stock’s 50-day simple moving average is $1.76, while the 200-day simple moving average is $1.36, demonstrating modest growth. Gevo has a market capitalization of $567.39 million, an unfavorable PE ratio of -6.97, and a volatility beta of 2.77.

Insider Trading Activity

In recent insider trading news, Andrew Shafer sold 26,911 shares of Gevo on November 5th at an average price of $2.37, totaling $63,779.07. Following this transaction, Shafer now holds 332,430 shares valued at approximately $787,859.10, marking a 7.49% reduction in his holdings. Additionally, insider Paul D. Bloom sold 16,000 shares on October 17th at an average price of $3.06, amounting to $48,960. Bloom currently owns 947,882 shares worth about $2,900,518.92, representing a 1.66% reduction in ownership. Insiders collectively own 4.00% of Gevo's stock.

Institutional Investment in Gevo

Large institutional investors have recently adjusted their stakes in Gevo. Millennium Management LLC purchased a new position in the company worth approximately $2,888,000 during the second quarter. Point72 Asset Management L.P. increased its holdings by 54.2% in the third quarter, now owning 2,312,870 shares valued at $3,770,000 after acquiring an additional 812,870 shares. Other notable investors include Point72 Asia Singapore Pte. Ltd., Cubist Systematic Strategies LLC, and XTX Topco Ltd., which have all made recent purchases increasing their stakes in Gevo. Currently, about 35.17% of the company’s shares are held by institutional and hedge fund investors.

Gevo: Company Overview

Gevo, Inc. is a carbon abatement company operating in multiple segments: Gevo, Agri-Energy, and Renewable Natural Gas. The company is dedicated to converting renewable energy into energy-dense liquid hydrocarbons, utilized as renewable fuels. Its product offerings include renewable gasoline and diesel, isobutanol, sustainable aviation fuel, renewable natural gas, isobutylene, ethanol, and animal feed and protein.

Investor Considerations

As Gevo's shares face a notable decline, potential investors might wonder if this is an appropriate time to sell. MarketBeat has tracked and identified that while Gevo holds a "Moderate Buy" rating among analysts, there are five other stocks currently recommended that may offer better investment opportunities.

Investors should carefully evaluate their portfolios and consider seeking expert financial advice before making decisions regarding Gevo or other investment opportunities.

Gevo, Stocks, Investors