ENGLEWOOD, CO—Kimberly T. Bowron, the Chief People and IT Officer at Gevo , Inc. (NASDAQ:GEVO), recently sold shares of the company’s common stock. According to a filing with the Securities and Exchange Commission, Bowron disposed of 14,240.84 shares at a price of $1.29 each, amounting to a total transaction value of $18,370.
Following this sale, Bowron holds no shares in the company through her 401(k) plan, as noted in the filing. However, she still maintains ownership of 415,268 shares directly. The sale was part of a routine transaction reported on November 21, 2024, and was filed on November 25, 2024.
In other recent news, Gevo Inc. has been making significant strides in its business operations. H.C. Wainwright recently reiterated a Buy rating for the company, citing its acquisition of Red Trail's ethanol plant and expansion of its renewable natural gas (RNG) capacity as key factors in the company's growth. The Red Trail facility, which has a production capacity of 65 million gallons per year, recently reported a gross profit of $5.3 million and a net profit of $3.8 million.
Gevo has also surpassed its annual target rate of 400,000 MMBtu with its production of 101,101 MMBtu of RNG. The company's Verity tracking system, designed to monitor and verify the carbon intensity of products, has been commercialized through a privately sponsored grower program for a biofuel client.
In addition, Gevo's Ethanol-to-Olefins (ETO) technology is expected to generate licensing revenues in the coming months. The company reported a loss from operations of $24 million for Q3 2024, but maintains a robust financial standing with $292.9 million in cash and a combined revenue and interest income of $5.8 million. These are the recent developments in Gevo's strategy to bolster its revenue and enhance its SAF project.
InvestingPro Insights
While Kimberly T. Bowron's recent stock sale might raise eyebrows, it's crucial to view this transaction within the broader context of Gevo's financial landscape. According to InvestingPro data, Gevo's market capitalization stands at $393.02 million, reflecting the company's current valuation in the renewable fuels sector.
InvestingPro Tips highlight some interesting aspects of Gevo's financial position. The company holds more cash than debt on its balance sheet, which could provide financial flexibility in its pursuit of sustainable fuel technologies. This cash cushion might explain why executives like Bowron feel comfortable adjusting their personal holdings.
However, investors should note that Gevo is quickly burning through cash, a common characteristic of companies in the development stage of innovative technologies. This rapid cash burn rate aligns with the company's reported operating income margin of -593.46% for the last twelve months, indicating significant ongoing investments in research and development.
The stock's recent performance has been volatile, with a strong 94.78% return over the last three months, contrasting sharply with a -46.28% return over the past month. This volatility is reflected in another InvestingPro Tip, which notes that Gevo's stock generally trades with high price volatility.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips on Gevo, providing a deeper dive into the company's financial health and market position. These insights could be particularly valuable given the complex nature of the renewable fuels industry and Gevo's position within it.
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