Renewable Energy jumps after report of Chevron close to $3B acquisition

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  • Renewable Energy Group Inc . (NASDAQ:REGI) soared 35 % in after hours trading after a report that Chevron (NYSE:CVX) is in advanced discussions to acquire the biodiesel maker for about $3B.
  • Chevron (CVX) is talking about paying $61.50/share for Renewable Energy, according to a Bloomberg report. No final agreement has been reached and terms could change.
  • The news comes after Bloomberg reported on Wednesday that the Renewable Energy (REGI) was exploring options, including a potential sale, after receiving takeover interest. The potential deal represents almost a 90 % premium to REGI's share price on Tuesday, before the news about a possible takeover.
  • The company turns feedstock into fuel at locations in the U.S. and Germany, but its biodiesel margins have been hurt by higher soybean costs, Bloomberg said.

    For this year the company from Ames could earn a total revenue around 3.3 billion USD. This is according to the average of the analysts' estimates. This is slightly more than 2021's revenue of 3.24 billion USD.

    Historical revenues and results Renewable Energy Group Inc plus estimates 2021

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    The analysts expect for 2021 a net profit of 183 million USD. For this year the consensus of the result per share is a profit of 3.32 USD. The PE-ratio therefore is 18.42.

    Analysts don't expect the company to pay a dividend. The average dividend yield of the oil & gas producers is an attractive 2.91 percent.

    Based on the current number of outstanding shares Renewable Energy Group Inc 's market capitalization is 2.4 billion USD. 16

    At 16.19 the stock trades 0.03 percent higher at 61.14 USD.

    Historical stock prices Renewable Energy Group Inc

    financial analysis renewableenergygroupinc

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