Feel like you need some extra fuel today? You may want to check out high-flying Aemetis (NASDAQ:AMTX). Although the company typically flies under the radar, AMTX stock is up nearly 25% in intraday trading on Thursday. However, without a ton of recent news, investors may be wondering why. Dive in with InvestorPlace below.
To start, what exactly is Aemetis? Well, the company specializes in renewable fuels and bio-chemicals. It has been around since 2005 and calls Cupertino, California home. But beyond that, here are 11 things to know about AMTX stock.
- Aemetis focuses on acquiring, developing and commercializing technologies to help replace petroleum-based products.
- How does it do this? Well, the company says that it works to convert ethanol and biodiesel plants into advanced bio refineries.
- Importantly, biodiesel is a renewable and biodegradable fuel that comes from things like vegetable oils or animal fats.
- Although biodiesel has many uses, Aemetis says that it uses its fuels to focus on supporting transportation and heating.
- With a headquarters in California, the company also has an ethanol facility in Modesto.
- Additionally, Aemetis has a renewable chemical and fuel production facility in India.
- Beyond its primary focus, the company produces ethanol and distiller corn oil for dairies and feedlots, as well as dairy biogas.
- The company also has a wholly owned subsidiary, Aemetis Health Products.
- Aemetis launched this subsidiary in August 2020 to focus on producing blended liquid and gel hand sanitizer, as part of its efforts to meet Covid-19 demand.
- More recently, this subsidiary received a $24 million purchase order for its hand sanitizer products.
- It also announced at that time that Aemetis is now the largest production plant for sanitizer alcohol in the Western part of the United States.
Why AMTX Stock Is Rallying Today
Although its role in the world of biodiesel is fascinating, why is AMTX stock trending higher today? There are likely two reasons for this.
The first is that Wall Street is showing Aemetis some love. Earlier this morning, H.C. Wainwright analyst Amit Dayal initiated coverage of AMTX stock and set a price target of $10. Importantly, that new price target represents more than 255% upside from its current share prices. So why is the analyst so bullish?
As Dayal wrote in an analyst note, Aemetis is working on transforming itself. How the analyst tells it, the company is working to go from a legacy ethanol and biodiesel provider to a multi-product renewable fuels company. As part of this, he cites its ability to generate revenue from things like a network for dairy-based renewable natural gas.
The Bottom Line
Additionally, investors likely know that all things renewable and clean energy have been red hot. While the note from H.C. Wainwright likely clued in investors, Aemetis itself is interesting. Because of its role in transferring away from traditional petroleum, it is a beneficiary of the broader eco-friendly trend. Although it is a small company with a lot of transforming to do, keep AMTX stock on your radar.
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On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.
