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Should You Punt On This Small Cap US Stock-GPRE

Acrobull Canada Advisory Inc.

 

November 122024
NameTickerSector/IndustryMarket CapRisk Factor
Green Plains Inc.GPRE-NASDAQBasic Materials$731.205 MillionMedium

 

 

 

 

 

Green Plains Inc. produces low-carbon fuels in the United States and internationally. It operates through three segments: Ethanol Production, Agribusiness and Energy Services, and Partnership. The Ethanol Production segment produces ethanol, distillers grains, and ultra-high protein and renewable corn oil. 

 

 

Recent Highlights

 

 

  • Oversold Conditions- The company has gone through massive turbulent times in recent weeks however the company roots remain strong and is expected to positive better financial results in the next financial quarter.

 

  • We expect the company to overcome recent challenges and return to the growth journey.

 

Third Quarter 2024 Financial Highlights

 

 

 

  • Green Plains reported net income of $48.2 million, or $0.69 per diluted share, compared to $22.3 million, or $0.35 per diluted share, for the same period in 2023.

 

  • EBITDA of $83.3 million, including a $30.7 million gain on asset sale.
  • Combined crush margin of $58.3 million in the third quarter.

 

  • Plant utilization rate of 97%, extending the track record of robust and improved operations.

 

 

  • We achieved record high ethanol and Ultra-High Protein yields for the quarter, as well as record renewable corn oil production

 

  • Green Plains reported net income of $48.2 million, or $0.69 per diluted share, compared to $22.3 million.

 

 

 

Stock Observation-The company stock earnings have been average, however since the stock belonged to consumer basic materials segment and is expected to perform short to mid term. The RSI level for the stock is at 43 which shows oversold conditions.

 

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

 

 

 
Considering all the factors and financials of the company Acrobull Canada Advisory Inc. maintains Customer Choose Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrovest only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrovest would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull Canada Advisory Inc. is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull Canada Advisory Inc. does not guarantee returns. 

 

Acrobull Recommendation Based on Evaluation

 

Current Market Price$11.31 USD
Acrobull RecommendationBuy at $10.90
Target Price$13.04 USD
RSI Level14 Day RSI 43
Total Shares Outstanding64.65 Million

Shares held by Insiders

Risk Factor

Stop Loss

2.87%

Medium

5%

 

 

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