Pacific Ethanol call volume above normal and directionally bullish » 14:0510/2210/22/20
Bullish option flow…
Bullish option flow detected in Pacific Ethanol with 4,925 calls trading, 1.2x expected, and implied vol increasing almost 9 points to 132.38%. Nov-20 8 calls and Nov-20 10 calls are the most active options, with total volume in those strikes near 2,000 contracts. The Put/Call Ratio is 0.15. Earnings are expected on November 5th.
|Over a week ago|
Pacific Ethanol price target raised to $13 from $9 at Craig-Hallum » 09:0809/2909/29/20
Craig-Hallum analyst Eric…
Craig-Hallum analyst Eric Stine raised the firm's price target on Pacific Ethanol to $13 from $9 and keeps a Buy rating on the shares. The analyst continues to view the emerging high-quality alcohol opportunity as a meaningful change in the outlook for Pacific Ethanol and thinks that this is mostly being missed by investors. While it was initially looked at as a major headwind for Pacific Ethanol and the entire ethanol industry, COVID-19 has been a meaningful bright spot as the demand and need for hand sanitizers and disinfectants has meaningfully increased for higher value/margin high-quality alcohol, he contends. Stine thinks this is especially important for established providers of USP-grade alcohol, a list of companies which includes Pacific Ethanol out of its Pekin/ICP campus. The analyst believes that at a minimum Pacific Ethanol should be worth $8 with the possibility of a $20-plus share price.
|Over a month ago|
Pacific Ethanol call volume above normal and directionally bullish » 14:4509/2409/24/20
Bullish option flow…
Bullish option flow detected in Pacific Ethanol with 4,945 calls trading, 1.5x expected, and implied vol increasing almost 3 points to 144.03%. Oct-20 8 calls and Nov-20 7 calls are the most active options, with total volume in those strikes near 2,400 contracts. The Put/Call Ratio is 0.22. Earnings are expected on November 5th.
Pacific Ethanol initiated with a Buy at BWS Financial » 09:0809/2209/22/20
BWS Financial analyst…
BWS Financial analyst Hamed Khorsand initiated coverage of Pacific Ethanol with a Buy rating and $20.50 price target. The company has "turned itself around from being on the brink of bankruptcy to generating free cash flow" that could have it debt free by 2021, Khorsand tells investors in a research note. Pacific Ethanol has been selling high-quality alcohol for many years and the change in product mix gives the company the ability to capture market share from an end market that has ballooned because of COVID-19, adds the analyst.
Pacific Ethanol call volume above normal and directionally bullish » 15:0509/1609/16/20
Bullish option flow…
Bullish option flow detected in Pacific Ethanol with 13,437 calls trading, 5x expected, and implied vol increasing over 7 points to 140.35%. Sep-20 6 calls and Oct-20 6 calls are the most active options, with total volume in those strikes near 5,500 contracts. The Put/Call Ratio is 0.23. Earnings are expected on November 5th.
Pacific Ethanol price target raised to $16 from $3 at H.C. Wainwright » 06:1909/1609/16/20
H.C. Wainwright analyst…
H.C. Wainwright analyst Amit Dayal raised the firm's price target on Pacific Ethanol to $16 from $3 and reiterates a Buy rating on the shares. The analyst cites the company's "significant" strategy shift to allocate approximately 19% of its capacity to high grade alcohol production for the target raise. This shift has brought about a material immediate change in the Pacific Ethanol's financial profile, "taking it from an outlook burdened with expected losses to one of profitable growth," says the analyst.
Pacific Ethanol jumps after stronger second quarter results » 11:3908/1208/12/20
Shares of Pacific Ethanol…
Shares of Pacific Ethanol (PEIX) are on the rise on Wednesday after the alcohol products and low-carbon renewable fuels producer reported improved second quarter results and issued its second half adjusted EBITDA outlook. RESULTS: Pacific Ethanol reported second quarter earnings per share of 27c, which was better than the one analyst estimate for a (20c) loss per share, and revenue for the quarter of $212.1M, also better than the one estimate of $179.7M. Additionally, the company said that adjusted EBITDA for the second half of 2020 is expected to be in the range of $50M-$70M. "Our strong second quarter financial results, including net income of $14.6M and Adjusted EBITDA of $28.8M, were driven by our diversified product portfolio and expanded production of high quality alcohol," said Mike Kandris, Pacific Ethanol's Co-CEO. "Our Pekin campus has produced industrial, chemical and beverage grade alcohol for over 100 years, and we recently announced an expansion of our production capacity to meet the demand for our high quality alcohol used in sanitizers and disinfectants, which has increased significantly due to the ongoing coronavirus pandemic." The company's CFO Bryon McGregor added that, "Looking at the second half of the year, we expect Adjusted EBITDA to range between $50 and $70 million, with momentum continuing into 2021. In addition to reducing our debt by $34.4M in the second quarter, we continue to work with our lenders to satisfy our continuing obligation to agree on a plan to eliminate or refinance our term debt. To this end, our goal is to reduce our total term debt outstanding at year end by at least $70M. We believe that continued debt reduction and profitable growth will position us well for delivering long-term growth and value for our stakeholders." PRICE ACTION: In late morning trading, shares of Pacific Ethanol have gained 56c, or 16% to $4.05.
Pacific Ethanol options imply 35.2% move in share price post-earnings » 15:3408/1108/11/20
Pre-earnings options volume in Pacific Ethanol is 4.1x normal with calls leading puts 11:2. Implied volatility suggests the market is anticipating a move near 35.2%, or $1.25, after results are released. Median move over the past eight quarters is 10.2%.
|Over a quarter ago|
Pacific Ethanol expands alcohol production capacity » 08:4107/2707/27/20
Pacific Ethanol announced…
Pacific Ethanol announced that it is expanding its production capacity of USP grade high quality alcohol at its Pekin, Illinois facility by 30 million gallons per year. The new capacity will be online in the fourth quarter of 2020, supplying the growing demand for the company's USP grade high quality alcohol with existing and new customers.
Pacific Ethanol files $100M mixed securities shelf 17:0106/0406/04/20