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Tag: Renewable Energy Group Inc.

  • Renewable Energy Group, Inc. (REGI) Stock Up in Afterhours, Here’s What you Should Know.

    Renewable Energy Group, Inc. (REGI) Stock Up in Afterhours, Here’s What you Should Know.

    Renewable Energy Group, Inc. (REGI) is a leader in energy and transportation businesses’ evolution to sustainability. It converts renewable energy sources to best-quality, sustainable fuel products. The company is a global producer of sustainable fuels that lower the emissions of greenhouse gas to directly decrease carbon impact.

    The price of REGI Stock during the regular trading on February 25, 2022, was $43.8 with a slight gain of 1.74%. At last check in the aftermarket, the stock further soared by 34.6%.

    REGI: Events and Happenings

    On February 26, 2022, it was reported through anonymous sources that REGI and Chevron Corp. are in advanced-level discussions to purchase REGI for approximately $3 billion. Chevron is expected to pay a per-share price of $61.50 for REGI. On February 22, 2022, REGI updated that it will announce its Q4 2021 financials on March 1, 2022. On February 18, 2022, REGI and Bunker Holding Group, announced their entry into a strategic partnership to grow the US and EU marine markets for sustainable bio-based diesel.

    On February 17, 2022, REGI reported installing an innovative pretreatment plant to refine the lowermost carbon intensity, the toughest to convert waste fats into bio-based diesel. The project is located in Germany. On January 4, 2022, REGI announced the acquisition of Amber Resources, LLC and its affiliated entities. On November 29, 2021, REGI informed its management’s participation at the following investor conferences.

    • Morgan Stanley Energy & Clean Virtual Tech Symposium on December 1, 2021.
    • Bank of America Securities Leveraged Finance Virtual Conference on December 1, 2021.
    • Credit Suisse Climate Tech and Start-up Virtual Forum on December 6, 2021.

    REGI: Key Financials

    On November 2, 2022, REGI released its financial outcomes for the third quarter ended September 30, 2021. Some of the important points are discussed below.

    Revenue

    Revenue in Q3 2021 was $1 billion against $0.57 billion in the same quarter of 2020. The company observed a gain of $0.43 billion in year-over-year revenue. The company topped the revenue estimates by $100 million.

    EPS

    Diluted net income per share in Q3 2021 was $42.4 million or $0.83 against $22.6 million or $0.51 in the same period of 2020. The company recorded an incline in its net income over the year and missed the estimated EPS target by -$0.35.

    Conclusion

    REGI stock down-performed in the past year by 49%. The recent aftermarket stock gain of the company is likely the outcome of an unofficial $3 billion deal between the company and Chevron as suggested by the analysts. The company is also gearing for the earnings release and expects a revenue of $803 million versus $0.81 EPS.

  • The Renewable Energy Group Inc. (REGI) stock declines sharply. Why is it so?

    The Renewable Energy Group Inc. (REGI) stock declines sharply. Why is it so?

    Renewable Energy Group Inc. (NASDAQ: REGI) stock declined by 4.96% in the last trading close, whereas the REGI stock price falls by 6.82% during pre-market after Pomerantz law firm on March 16 announced the case filed against Renewable energy group and its certain officials. REGI is a biodiesel company that provides clean, low carbon transportation fuels. REGI is the largest producer of advanced biofuels with 13 biorefineries and a feedstock processing facility.

    What is happening?

    As per the recent news, the class action docketed under 21-cv-02244 is filed on behalf of people except for the Defendants, who purchased or acquired Renewable Energy securities between May 3, 2018, February 25, 2021, inclusive (the “Class Period”). The claims are made against the Defendants under the Securities Exchange Act of 1934. The Defendants are accused of making materially false statements, and also they failed to reveal material adverse facts about REGI’s business, operations, and prospects. Following are the major accusations made against Defendants:

    • The Defendants of REGI did not inform the people that petroleum diesel was not periodically added to Renewable Energy Group’s specific loads. Still, instead, it was added by the REGI customers due to the failure in the diesel addictive system.
    • As a result of the above-mentioned point, Renewable Energy was not the proper claimant of certain BTC payments on Biodiesel that it sold between January 1, 2017 and September 30, 2020.
    • Renewable Energy Group is also accused of stating wrong figures of revenue and net income for certain periods.
    • Also that REGI’s internal control over financial statements had a material weakness related to the purchase and use of petroleum diesel gallons when blending with biodiesel.
    • Lastly, the Renewable Energy Group Defendants’optimistic claims about REGI’s business, activities, and prospects were materially misleading.

    Effect of Fourth Quarter and full year 2020 financial results

    Renewable Energy Group, On February 25, announced its fourth quarter and full-year 2020 financial results in which REGI disclosed that they would restate $38.2 million in cumulative revenue from January 2018 through September 30, 2020, because REGI was not the justified claimant for certain BTC payments on biodiesel it sold between the time span of January 1, 2017, to September 30, 2020. After this news broke, the REGI stock price fell $8.17, or 9.5%, in two consecutive trading sessions to close at $77.77 per share on February 26, 2021. This has given a significant setback to REGI wherein the investors do not find it a sensible step to investing in REGI stock.