Gevo Inc. (NASDAQ:GEVO), a renewable fuels company, saw its shares fall in Thursday’s premarket session after the company withdrew its loan guarantee application with the U.S.
Department of Energy’s Office of Energy Dominance Financing for its ATJ-30 project.
Financing Shift
The company said the DOE required the project to support enhanced oil recovery, which is not yet commercially viable at scale in the project area.
Gevo is pursuing alternative financing options better aligned with its strategy, aiming to accelerate execution and improve returns.
The withdrawal allows the company to reapply for financing at a later date if it chooses.
Project Continuity
Gevo had been working to transfer a prior conditional DOE loan guarantee—originally tied to its ATJ-60 sustainable aviation fuel project in South Dakota—to the ATJ-30 project at its Gevo North Dakota facility.
The company will continue advancing ATJ-30 at the site, which includes low-carbon ethanol production and carbon capture and sequestration capabilities.
CEO Commentary
CEO Paul Bloom said, “Over the past year, we have substantially derisked our position in low-carbon ethanol required for our ATJ and we believe we are in a better position to secure alternative financing that allows us to pursue the most accretive business case in alignment with company strategy and timelines.”
He added that the North Dakota facility is already generating cash and can support EBITDA growth. It also serves as a foundation for expanding Gevo’s sustainable fuels business.
Short Interest Declines
Short interest in Gevo fell to 30.33 million shares from 31.53 million in the latest reporting period, representing 12.64% of its public float.
Based on an average daily trading volume of 4.60 million shares, it would take about 6.6 days for short sellers to cover their positions.
Technical Analysis
Gevo is currently trading 19% below its 20-day simple moving average (SMA) and 12.4% below its 50-day SMA, suggesting bearish short-term momentum.
The stock is also 7% below its 200-day SMA, indicating a longer-term downtrend as it struggles to regain upward traction.
The relative strength index (RSI) is at 42.17, suggesting neutral momentum and no strong buying or selling pressure.
- Key Resistance: $2.00 — A level where selling pressure has historically emerged.
- Key Support: $1.50 — A critical level that could indicate a reversal if tested.
Gevo’s 12-month performance shows a return of 70.94%, reflecting strong growth over the past year despite recent challenges.
Earnings & Analyst Outlook
Gevo is slated to provide its next financial update on May 12, 2026 (estimated).
- EPS Estimate: Loss of 2 cents (up from a loss of 9 cents)
- Revenue Estimate: $44.94 million (up from $29.11 million)
Analyst Consensus & Recent Actions: The stock carries a Strong Buy rating with an average price target of $4.69. Recent analyst moves include:
- Northland Capital Markets: Outperform (Maintains Target to $3.00) (Dec. 31, 2025)
- UBS: Neutral (Raises Target to $2.25) (Sept. 17, 2025)
- HC Wainwright & Co.: Buy (Maintains Target to $14.00) (May 30, 2025)
GEVO Stock Price Activity: Gevo shares were down 16.00% at $1.68 during premarket trading on Thursday, according to Benzinga Pro data.
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