Gevo, Inc. (GEVO) announced in the closing days of December 2016 that it will issue a reverse stock split. The 1-for-20 reverse split will take effect at the close of business on Thursday, January 5, 2017.

A meeting between company stockholders was held on December 14, 2016 to discuss the viability of a reverse stock split, which was approved by the culmination of the meeting and announced on December 29.

The move is intended to allow the company to maintain its NASDAQ Capital Market listing, as share prices had dipped below the $1 point last December. GEVO stock closed Tuesday, January 3, 2017 at $0.169, down 2.31%.

Gevo is engaged in the development of renewable chemicals and advanced biofuels as alternative energy sources to traditional petroleum-based products. The company recently produced the world’s first cellulosic renewable jet fuel to be used on commercial flights. (See also: Gevo’s Biofuels Fuel Growth Aided by EPA.)

Zacks Investment Research upgraded its rating of Gevo stock from "sell" to "hold" during trade on Tuesday, January 3.

Reverse Splitting the Stock

Every twenty shares of Gevo’s issued and outstanding common stock will be converted into one new share of common stock. There will be no fractional shares issued as part of the reverse stock split, with any fractional share interests being rounded up to the next whole number.

Stockholders who own Gevo common shares will automatically have their positions adjusted to reflect the split and won’t be required to take any action.

Institutional Activity

According to recent 13F filings with the SEC, several institutional investors or hedge funds increased their stake in Gevo stock. In the last quarter, 18 institutional holders increased their positions, while another 8 took out new positions.

Stonebridge Capital Advisors LLC entered a new position, buying 122,200 shares at a value of $21,000.  Jane Street Group LLC also entered a new position, buying 64,490 shares at a total value of $11,000.

Vanguard Group Inc. increased their position, buying an additional 513,290 shares and taking their total holding to 1,329,263 shares at a value of $230,000. Geode Capital Management LLC also increased their stake in Gevo stock, buying another 134,471 shares to take their holdings up to 451,958 at a total value of $78,000
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Institutional investors and hedge funds own a total of 3.34% of Gevo common stock.

 

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