Canaccord Genuity Believes Renewable Energy Group (NASDAQ: REGI) Still Has Room to Grow

By Ryan Adsit

Canaccord Genuity analyst John Quealy reiterated a Buy rating on Renewable Energy Group (NASDAQ: REGI) yesterday and set a price target of $16. The company’s shares opened today at $12, close to its 52-week high of $12.65.

According to, Quealy is a 4-star analyst with an average return of 7.3% and a 56.1% success rate. Quealy covers the Industrial Goods sector, focusing on stocks such as Emerson Electric Company, Darling Ingredients, and Ceco Environmental.

Currently, the analyst consensus on Renewable Energy Group is Moderate Buy and the average price target is $16.50, representing a 37.5% upside.

In a report released yesterday, Roth Capital also reiterated a Buy rating on the stock with a $17 price target.

Based on Renewable Energy Group’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $419 million and GAAP net loss of $15.91 million. In comparison, last year the company earned revenue of $306 million and had a net profit of $1.63 million.

Based on the recent corporate insider activity of 20 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 REGI in relation to earlier this year. Last month, Chad Stone, the Chief Financial Officer of REGI bought 3,000 shares for a total of $35,850.

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Renewable Energy Group, Inc. is a holding company, which engages in the production and trade of biofuel and renewable chemicals. The company focuses on providing cleaner, lower carbon intensity products and services. It operates through the three segments: Biomass-based Diesel; Services; and Renewable Chemicals. The Biomass-based Diesel segment processes waste vegetable oils, animal fats, feedstock, and methanol. The Services segment offers services for managing the construction of biomass-based diesel production facilities and managing ongoing operations of third party plants and collects fees related to the services provided. The Renewable Chemicals segment consists of research and development activities involving the production of renewable chemicals, biofuels and other products from the company’s proprietary microbial fermentation process and the operations of a demonstration scale facility located in Okeechobee, Florida. The company was founded in August 2006 and is headquartered in Ames, IA.