Gevo Experiences Unusual Options Activity

Gevo, Inc. (NASDAQ:GEVO) experienced a notable surge in options trading on Thursday, with traders purchasing a significant 12,387 call options. This figure marks an impressive increase of about 240% compared to the usual daily volume of 3,647 call options.

Insider Transactions at Gevo

In related developments, insider Paul D. Bloom sold 16,000 shares of Gevo's stock on October 17. The shares were sold at an average price of $3.06, totaling $48,960. Following this transaction, Bloom owns 947,882 shares valued at approximately $2,900,518.92, representing a 1.66% reduction in his stake. The details of this sale were disclosed in a filing with the Securities and Exchange Commission. Additionally, insider Andrew Shafer sold 26,911 shares on November 5 at an average price of $2.37, amounting to $63,779.07. Post-sale, Shafer retains 332,430 shares valued around $787,859.10, reflecting a 7.49% decrease in ownership. Notably, insiders hold about 4% of Gevo's stock.

Institutional Investors' Involvement

Recent activity from institutional investors indicates growing interest in Gevo. In the second quarter, Millennium Management LLC acquired a new position in Gevo valued at approximately $2,888,000. Furthermore, Point72 Asset Management L.P. increased its stake by 54.2% in the third quarter, bringing its total shares to 2,312,870, now worth $3,770,000. Other investors, such as Point72 Asia Singapore Pte. Ltd. and Cubist Systematic Strategies LLC, have also made acquisitions totaling $295,000 and $112,000 respectively. XTX Topco Ltd. boosted its holdings by 61.8%, now owning 133,674 shares valued at $74,000. Collectively, hedge funds and institutional investors possess about 35.17% of Gevo's stock.

Analyst Ratings and Price Targets

Gevo has attracted attention from several research analysts. HC Wainwright maintained a "buy" rating with a price target of $14.00 in a research note dated November 13. Meanwhile, UBS Group raised its price target from $0.85 to $3.25, assigning a "neutral" rating in a report published on October 22.

Gevo's Stock Performance

Throughout Thursday's trading session, Gevo's shares rose by 31.8%, reaching $1.99 during mid-day trading. The stock recorded a volume of 19,242,071 shares traded, significantly higher than its average volume of 5,755,698. Gevo's stock has fluctuated between a low of $0.48 and a high of $3.39 over the past year. Currently, it holds a market cap of $476.37 million, with a price-to-earnings ratio of -5.85. Gevo's liquidity ratios indicate strong financial health, with a quick ratio of 8.05 and a current ratio of 8.25.

Company Overview

Gevo, Inc. operates primarily as a carbon management company. Its operations are divided into three segments: Gevo, Agri-Energy, and Renewable Natural Gas. The company focuses on converting renewable energy into energy-dense liquid hydrocarbons suitable for renewable fuels. Its product offerings include renewable gasoline, diesel, isobutanol, sustainable aviation fuel, among others.

Gevo, stocks, options