OPAL

Opal Fuels($OPAL) CEO Scoops Up 44,000 Shares During Price Rebound - A Bold Vote of Confidence

05/20/2025 20:42

Opal Fuels Inc. ($OPAL) CEO Adam Comora has captured market attention with a significant insider purchase of 44,726 shares in just two days last week. This buying spree comes at a particularly noteworthy moment as the renewable natural gas (RNG) company's stock shows signs of a dramatic rebound. According to recently filed SEC Form 4 disclosures, Comora purchased 6,000 shares at an average price of $2.37 (approximately $14,220) on May 16, followed by an additional 38,726 shares at an average price of $2.57 (approximately $99,526) on the very next trading day, May 19. The second purchase is especially significant as it occurred at substantially higher price points, signaling the CEO's strong conviction in the company's value. Both transactions were executed across multiple trades with prices ranging from $2.36 to $2.40, according to the filing footnotes. Based in White Plains, New York, Opal Fuels operates as a vertically integrated renewable energy company that captures methane from landfills and organic waste, converting it into pipeline-quality renewable natural gas. The company primarily supplies this low-carbon fuel to heavy and medium-duty trucking fleets across the United States. Beyond RNG production, Opal designs, develops, and operates natural gas fueling stations, develops hydrogen fueling infrastructure, and sells renewable power to utilities. The company also monetizes environmental attributes associated with RNG and renewable power, including Renewable Identification Numbers (RINs), Low Carbon Fuel Standard (LCFS) credits, and Renewable Energy Credits (RECs). $OPAL stock has weathered a difficult period, declining approximately 51.8% over the past year and continuing to struggle through March and early April 2025. The downward pressure intensified after the March 14 announcement of Q4 2024 results, which showed earnings per share dropping to 2 cents from 11 cents year-over-year and revenue declining 8% to $80.02 million, significantly below analyst expectations of $91.24 million. The stock hit a 52-week low of $1.30 on April 14. However, the narrative began to shift following the May 8 announcement of Q1 2025 results. The company reported adjusted earnings per share of 9 cents, exceeding analyst estimates of 6 cents and marking a substantial improvement from a 1-cent loss in the same quarter last year. Revenue increased by 31.5% to $85.41 million, slightly below analyst expectations of $86.33 million. Following this earnings release, $OPAL stock began a rapid ascent, reaching $2.45 by May 16 and $2.59 by May 19. It's precisely during this recovery period that CEO Comora executed his significant insider purchases. This timing suggests strong management confidence in both the recent performance improvement and the company's long-term growth potential. Particularly telling is the decision to buy at considerably higher prices after the initial rebound, indicating management's belief that the stock remains undervalued despite the recent gains. From a financial perspective, Opal Fuels maintains a solid position with approximately $40.08 million in cash as of Q1 2025 and total liquidity of $239.9 million including unused credit facilities. This provides substantial financial flexibility to support the company's growth strategy. For fiscal year 2025, Opal has maintained its guidance for adjusted EBITDA between $90 million and $110 million, potentially representing up to 22% growth from the $90 million reported in 2024. Wall Street analysts generally maintain a positive outlook on $OPAL. The current consensus rating is 'buy' with a median 12-month price target of $4.75, suggesting approximately 83% upside potential from current levels. However, earnings estimates have seen some recent downward revisions. The renewable natural gas industry continues to grow alongside global decarbonization trends. In the United States, supportive policies such as the Inflation Reduction Act (IRA) are providing tailwinds for the sector. Opal Fuels is capitalizing on this environment with aggressive expansion strategies, including a recent joint venture with Republic Services to develop a new biogas-to-RNG facility at the Charlotte Motor Speedway Landfill in North Carolina. Investors should remain mindful of several risk factors, however. The company's trailing twelve-month levered free cash flow remains negative at approximately $70.11 million due to ongoing capital expenditures on RNG projects and fueling stations. Additionally, volatility in environmental credit values and regulatory uncertainties could impact profitability. CEO Comora's substantial insider purchases signal strong confidence in the company's long-term growth prospects despite these challenges. Investors should monitor upcoming earnings releases, project development progress, and renewable energy policy changes. As the U.S. stock market navigates volatility amid Moody's U.S. credit rating downgrade and trade tensions, the trajectory of this small but rapidly growing player in the renewable energy sector may offer important insights for investors seeking new opportunities in the green energy transition.

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