Gevo president & COO sells over $23k in company stock

Gevo , Inc.’s (NASDAQ:) President and Chief Operating Officer, Christopher Michael Ryan, recently sold a total of $23,482 worth of company stock, according to a new SEC filing. The transactions occurred on July 31, 2024, and were reported in a Form 4 document filed with the Securities and Exchange Commission.

The sale involved 39,821 shares of Gevo common stock at an average price of $0.5897 per share. This price represents a weighted average, as the shares were sold in multiple transactions with prices ranging from $0.5800 to $0.5995 per share. Following this sale, Ryan still owns a substantial number of shares in the company, with a reported 1,704,556 shares remaining in his direct ownership.

Additionally, it was noted in the filing that the shares were sold to cover tax withholding obligations that arose from the vesting of a restricted stock award. The sales were executed pursuant to a pre-arranged 10b5-1 trading plan, which Ryan had adopted on March 25, 2024. This type of trading plan allows company insiders to sell shares at predetermined times to avoid accusations of trading on non-public information.

Investors often monitor insider transactions as they can provide insights into the executives’ perspectives on the company’s current valuation and future prospects. However, it’s important to note that selling activity can be influenced by a variety of factors, including personal financial planning and diversification strategies, which might not necessarily reflect the insider’s view on the company’s future performance.

Gevo, Inc. specializes in industrial organic chemicals and is known for its focus on renewable chemicals and advanced biofuels that aim to reduce greenhouse gas emissions. The company’s stock is publicly traded on the NASDAQ stock exchange under the ticker symbol GEVO.

In other recent news, Gevo, Inc. faces notable developments in the biofuel industry. The company’s hopes for ethanol subsidies under the new sustainable aviation fuel (SAF) program have been dampened due to stringent climate requirements. The program mandates that ethanol producers certify that their corn is sourced from farms employing three specific climate-friendly practices, limiting the amount of ethanol that can meet the subsidy criteria.

In a collaborative effort with ClearFlame Engine Technologies, Inc., Gevo aims to enhance the traceability of decarbonization efforts in the U.S. road freight sector. The initiative will utilize Verity’s carbon accounting software to track environmental attributes from the growth of crops to their processing into low-carbon ethanol. This ethanol is then used by ClearFlame in their engines, demonstrating a 42% reduction in greenhouse gas emissions.

Gevo’s recent earnings call highlighted progress on the Net-Zero 1 project and an optimistic outlook on cost management. The company revised the expected spend on Net-Zero 1 to $90 million to $125 million and reported $4 million in revenue from renewable (RNG) sales. Gevo also repurchased 5.5 million shares of common stock for $3.7 million, signaling confidence in its stock value. These recent developments underline the company’s commitment to sustainable energy solutions and strategic investments in the growing market for low carbon fuels.

InvestingPro Insights

Following the recent insider stock sale by Gevo, Inc.’s President and Chief Operating Officer, investors may be curious about the company’s current financial health and market performance. According to InvestingPro data, Gevo’s market capitalization stands at a modest $129.81 million, reflecting the scale of the company within the industrial chemicals sector. Despite a remarkable revenue growth rate of 242.39% over the last twelve months as of Q1 2024, the company’s gross profit margin is deeply negative at -83.08%, indicating that it costs significantly more to produce its goods than the revenue those goods generate.

Moreover, Gevo’s stock price has experienced considerable volatility, with a one-year price total return of -65.24%, which suggests that investors have faced a challenging period. The company’s price/book ratio, a metric that compares a firm’s market value to its book value, is currently at 0.25. This low multiple could indicate that the stock is potentially undervalued relative to the company’s asset base, an insight that might interest value-oriented investors.

Two notable InvestingPro Tips for Gevo include the fact that the company holds more cash than debt on its balance sheet, which could provide some financial stability, and that it is trading at a low Price/Book multiple, potentially offering an attractive entry point for investors. However, these factors should be weighed against concerns such as the company’s quick rate of cash burn and weak gross profit margins.

For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available, including insights on valuation, profitability forecasts, and stock price performance. As of the latest update, there are 11 more tips that can be explored on InvestingPro for a deeper dive into Gevo’s financial metrics and market standing.

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