Green Plains Renewable Energy Inc. (GPRE) Given “Buy” Rating at Jefferies Group
Jefferies Group reissued their buy rating on shares of Green Plains Renewable Energy Inc. (NASDAQ:GPRE) in a research note released on Wednesday morning. The firm currently has a $32.00 price objective on the stock.
“The purchase of Fleischman’s Vinegar Company caps a transformative summer in which Green Plains bolstered its ethanol footprint with the purchase, and subsequent drop down, of Abengoa (note) and issued a $170m convert to strengthen its non-ethanol asset base. FVC can add $0.30-$0.40 to 2017E EPS, excluding one-time costs, and enables FVC to integrate its production and invest in new applications while reducing cyclical risk. The News: Green Plains has acquired Fleischman’s Vinegar Company for $250m financed through debt ($135m from Green Plains’ 3Q16 convertible issue) and cash. The transaction closed on October 3, 2016. Assuming 9-10x EBITDA, we estimate the acquisition adds $25-$28m in EBITDA and $0.30-$0.40 in EPS, excluding synergies and corporate costs. Fleischman’s is a specialty ingredient solutions provider with a backbone in the highly- fragmented US industrial vinegar market. A customer-driven, innovation culture drives 2%-3% base growth and 2%-3% from new markets and/or mix shift (customers shifting away from chemical preservatives), and the competitive position should benefit from vertical integration.”,” Jefferies Group’s analyst wrote.
Other analysts also recently issued reports about the stock. Zacks Investment Research upgraded shares of Green Plains Renewable Energy from a hold rating to a buy rating and set a $25.00 target price on the stock in a report on Thursday, July 14th. Stephens upgraded shares of Green Plains Renewable Energy from an equal weight rating to an overweight rating and set a $32.00 target price on the stock in a report on Tuesday. Three research analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has a consensus rating of Buy and an average price target of $27.00.
Shares of Green Plains Renewable Energy (NASDAQ:GPRE) opened at 28.01 on Wednesday. Green Plains Renewable Energy has a 52-week low of $12.39 and a 52-week high of $28.37. The stock has a 50 day moving average of $24.89 and a 200 day moving average of $20.29. The firm’s market capitalization is $1.07 billion.
Green Plains Renewable Energy (NASDAQ:GPRE) last released its earnings results on Monday, August 1st. The company reported $0.21 EPS for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.29. Green Plains Renewable Energy had a negative net margin of 0.43% and a negative return on equity of 1.41%. The business had revenue of $887.70 million for the quarter, compared to the consensus estimate of $803.62 million. During the same period in the previous year, the firm earned $0.19 EPS. The business’s revenue for the quarter was up 19.2% on a year-over-year basis. On average, analysts predict that Green Plains Renewable Energy will post $0.06 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Friday, September 16th. Investors of record on Friday, August 26th were given a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 1.72%. The ex-dividend date was Wednesday, August 24th. Green Plains Renewable Energy’s payout ratio is presently -137.14%.
A number of hedge funds and other institutional investors have recently made changes to their positions in GPRE. Van ECK Associates Corp increased its position in shares of Green Plains Renewable Energy by 1,998.0% in the second quarter. Van ECK Associates Corp now owns 1,586,627 shares of the company’s stock worth $31,288,000 after buying an additional 1,511,002 shares during the last quarter. Emerald Acquisition Ltd. bought a new position in shares of Green Plains Renewable Energy during the second quarter worth approximately $14,827,000. Bessemer Group Inc. bought a new position in shares of Green Plains Renewable Energy during the first quarter worth approximately $6,611,000. Laurion Capital Management LP bought a new position in shares of Green Plains Renewable Energy during the second quarter worth approximately $7,797,000. Finally, Denver Investment Advisors LLC increased its position in shares of Green Plains Renewable Energy by 22.3% in the second quarter. Denver Investment Advisors LLC now owns 1,444,624 shares of the company’s stock worth $28,488,000 after buying an additional 263,696 shares during the last quarter. 98.23% of the stock is currently owned by hedge funds and other institutional investors.
About Green Plains Renewable Energy
Green Plains Inc (Green Plains) is a vertically integrated producer, marketer and distributor of ethanol. The Company operates through four segments: Ethanol Production, Agribusiness, Marketing and Distribution, and Partnership. The Company’s ethanol production segment is engaged in the production of ethanol and related distillers grain.
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