Shares of Pacific Ethanol Inc (NASDAQ:PEIX) are on fire this afternoon as the company has announced the commencement of the commercial production of cellulosic ethanol at their new Stockton, CA plant. The new plant is expected to produce as much as 750,000 gallons of cellulosic ethanol per year using Edeniq’s Pathway Technology. The stock is up close to 20% over the last month alone, and this news should certainly equate to an expansion of revenue over the coming quarters.
Neil Koehler, the company’s president and CEO, said, “We are now commercially producing cellulosic ethanol using Edeniq’s Pathway enzyme at our Stockton facility. This is an important step in our strategy to increase production yields at our plants and our mission to be the leading producer and marketer of low-carbon renewable fuels. We are working with Edeniq and the Environmental Protection Agency to qualify these gallons for generating D3 cellulosic RINs, which carry a premium over conventional ethanol, and we expect to receive EPA approval in the first quarter of 2016.”
The stock is currently trading higher by 6.37% or $0.27 following the positive news, hitting $4.51 per share at the time of us publishing this article. About 659,957 shares traded hands. PEIX has declined 68.36% since May 13, 2015 and is downtrending. It has underperformed the S&P500 by 64.68%.
The institutional sentiment increased to 1.76 in Q2 2015. It’s up 0.84, from 0.92 in 2015Q2. The ratio is positive, as 21 funds sold all their Pacific Ethanol Inc shares they owned while 21 reduced their positions. 20 funds bought stakes while 54 increased their total positions. Institutions now own 25.88 million shares which is 34.08% more than the previous share count of 19.30 million in 2015Q2.
Candlewood Investment Group Lp holds 37.76% of its total portfolio in Pacific Ethanol Inc, equating to 6.96 million shares. Vertex One Asset Management Inc. owns 1.14 million shares representing 1.01% of their total US portfolio. Moreover, Thomson Horstmann & Bryant Inc has 0.7% of their total portfolio invested in the company, equating to 1.10 million shares. The Texas-based Rr Advisors Llc has a total of 0.27% of their portfolio invested in the stock. Lucus Advisors Llc, a New York-based fund reported 68,765 shares owned.
Pacific Ethanol, Inc. is a producer and marketer of low-carbon renewable fuels in the Western United States. The company has a market cap of $184.79 million. The Firm also sells ethanol co-products, including wet distillers grain , a nutritious animal feed, and corn oil. It currently has negative earnings. Serving integrated oil companies and gasoline marketers who blend ethanol into gasoline, the Company provides transportation, storage and delivery of ethanol through third-party service providers.