Earnings

Are Investors Buying or Selling Gevo, Inc. (GEVO), and What Should You Do?

Recent insider trends for Gevo, Inc. (NASDAQ:GEVO) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on GEVO is anything to go by, investors should pay attention.

Institutions own 13.14% of Gevo, Inc. (GEVO)’s shares. The total value of these holdings, in millions, is $1. Among active positions in the latest quarter, 11 holders increased their positions by a total of 405788 shares, 11 holders decreased the positions by a total of 652484 shares, and 11 holders held their positions. This works out to a net decrease in ownership of 246696 shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 4 holders initiated new positions by a total of 153138 shares and 5 holders exited their positions by a total of 44154 shares. This nets out to an increase of 108984 shares and is a bullish sign for GEVO.

In the last three months, insiders executed a total of 21 trades.21 were sells. Insider ownership decreased by a total of 294 shares, which suggests that GEVO’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 77 sells, and ownership decreased by a net of 1094 shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Gevo, Inc. (NASDAQ:GEVO)’s short interest is 1.8 million shares, or 34.65% of the float. This represents a decrease of -11% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.

Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that GEVO is a Weak buy, which implies that GEVO is expected to outperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Gevo, Inc. (NASDAQ:GEVO) is undervalued.

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