OPAL

Opal Fuels ($OPAL) Surges 116% After CEO's 4-Day Buying Spree, $569K Executive Cluster Purchase Draws Attention

05/27/2025 21:41

Opal Fuels ($OPAL), a renewable natural gas (RNG) specialist, has captured market attention as executives engaged in significant cluster buying during the stock's dramatic recovery. SEC filings reveal that between May 16-23, the CEO and directors purchased a total of $569,369 worth of company shares over the span of just one week. The most notable activity came from co-CEO Adam Comora, who executed aggressive consecutive purchases: 6,000 shares ($14,220) on May 16, 38,726 shares ($99,525) on May 19, 16,600 shares ($41,334) on May 21, and 8,400 shares ($21,000) on May 22. His total investment reached $175,079 for 69,726 shares. Director Nadeem Nisar also participated with 45,000 shares ($115,450), while director Scott Dols purchased 72,887 shares ($185,410). Officer Jonathan Maurer rounded out the buying with a single 25,000-share purchase ($68,500) on May 23. This insider buying cluster coincided with a remarkable stock recovery. $OPAL plummeted 74% from $4.87 in June 2024 to a low of $1.26 in April 2025, before surging 116% from the April trough to reach $2.72 on May 23. The insiders' average purchase prices ranged from $2.37 to $2.87, closely aligned with current trading levels. The stock's rebound was triggered by better-than-expected Q1 earnings released on May 8. Opal Fuels reported adjusted earnings of 9 cents per share, beating analyst expectations of 6 cents by 50%. Revenue rose 31.5% year-over-year to $85.4 million, though slightly missing the $86.3 million consensus. Adjusted EBITDA improved significantly to $20.2 million from $15.2 million in the prior year period. Based in White Plains, New York, Opal Fuels specializes in capturing methane from landfills and dairy farms to convert into renewable natural gas. Founded in 1998, the company focuses on sustainable fuel solutions for heavy and medium-duty trucking fleets. With current operating capacity of 8.8 million MMBtu, the company expects to expand to 11.4 million MMBtu once projects under construction are completed. The executive buying spree signals strong confidence in the business outlook, particularly given the renewable energy sector's exposure to market volatility among small-cap stocks. Co-CEO Comora's four consecutive days of purchases is especially noteworthy. The company projects 2025 adjusted EBITDA of $90-110 million and plans to increase RNG production to 5.0-5.4 million MMBtu. Amid trade tensions and dollar weakness concerns that created market volatility in April and May 2025, small-cap stocks experienced particularly pronounced swings. However, late May news of tariff delays restored risk appetite, benefiting growth stocks like Opal Fuels. Analysts view the long-term growth potential for the RNG market as substantial, driven by accelerating decarbonization efforts in heavy-duty commercial vehicles. With supportive clean energy policies under the Biden administration and continued Inflation Reduction Act benefits, companies like Opal Fuels operate in a favorable regulatory environment. The company plans to begin construction on approximately 2.0 million MMBtu of new RNG capacity this year, with the Atlantic RNG project expected to commence commercial operations in Q3.

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