D.A. Davidson Reiterates a Buy Rating on Enviva

By Carrie Williams

In a report released yesterday, Poe Fratt from D.A. Davidson reiterated a Buy rating on Enviva (NYSE: EVA). The company’s shares closed yesterday at $28.10, close to its 52-week high of $29.65.

According to TipRanks.com, Fratt is a 3-star analyst with an average return of 2.7% and a 66.7% success rate. Fratt covers the Basic Materials sector, focusing on stocks such as Blueknight Energy Partners L.P., Calumet Specialty Products, and Antero Midstream Partners.

Enviva has an analyst consensus of Moderate Buy.

Based on Enviva’s latest earnings report from June 30, the company posted quarterly revenue of $119.7M and quarterly net profit of $12.05M. In comparison, last year the company earned revenue of $116.6M and had a net profit of $6.41M.

Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EVA in relation to earlier this year. Most recently, in December 2015, James P. Geraghty, the VP & Controller of EVA bought 2,000 shares for a total of $28,500.

Enviva Partners LP engages in the production and distribution of utility-grade wood pellets to power generators. It offers renewable woody biomass, including wood pellets, which are used for coal-fired power generation and combined heat and power plants to co-fired or dedicated biomass-fired plants. The firm procures wood fiber from landowners and other suppliers; dry and process that fiber into wood pellets at the company’s production plants; and transport those products to deep-water marine terminals where they are stored and then distributed to customers. The company was founded in November 2013 and is headquartered in Bethesda, MD.