These 5 Penny Stocks are Trending on Reddit

4. Gevo, Inc. (NASDAQ:GEVO)

Number of Hedge Fund Holders: 7

Closing Price on March 23: $4.69

Gevo, Inc. (NASDAQ:GEVO) operates as a renewable fuels and advanced biofuels company. The company commercializes gasoline, jet fuel, and diesel fuel to achieve zero carbon emissions, and reduce greenhouse gas emissions with sustainable alternatives. On March 22, 2022, Gevo, Inc. (NASDAQ:GEVO) announced that the company has signed a “take-or-pay” agreement with Delta Air Lines, Inc. (NYSE:DAL) to supply 75 million gallons of sustainable aviation fuel per year for seven years. The company estimates that this 7-year deal should generate roughly $2.8 billion in revenues.

This January, Gevo, Inc. (NASDAQ:GEVO) announced that the company has started working on making its dairy manure-based renewable natural gas project operational. Located in northwest Iowa, the project is known as Gevo NW Iowa RNG and it is expected to produce approximately 355,000 MMBtu of RNG per year.

Gevo, Inc. (NASDAQ:GEVO) is becoming popular among analysts and investor circles alike. This February, Citi analyst Prashant Rao initiated coverage of Gevo, Inc. (NASDAQ:GEVO) with a Buy rating and $5 price target. The analyst has a bullish view on the stock and says Gevo, Inc. (NASDAQ:GEVO) will soon be hitting a potential inflection point in its cash flow profile as the company’s Iowa RNG project becomes operational.

Gevo, Inc. (NASDAQ:GEVO) is one of the trending penny stocks on Reddit. Other than individual Reddit investors, veteran hedge fund investors are also bullish on the alternative fuels company. By the end of the fourth quarter of 2021, Gevo, Inc. (NASDAQ:GEVO) was a part of 7 hedge fund portfolios, that held collective stakes above $10.76 million in the company.

Israel Englander’s Millennium Management was the most prominent shareholder in Gevo, Inc. (NASDAQ:GEVO) as of February 23, 2022. Insider Monkey’s data shows that Millennium Management owned over 1 million shares of the company, which amounted to a stake value of $4.57 million.