Sector Glance: Ethanol Producers Climb
Wednesday August 8, 4:38 pm ET
Ethanol Companies Up on Gasoline Inventory Report, Analyst Upgrades Aventine Stock to 'Buy'
NEW YORK (AP) -- Shares of ethanol producers rose Wednesday on reports that gasoline inventories dropped last week.
The U.S. Department of Energy reported that oil inventories fell by 4.1 million barrels for the week ended Aug. 3. Analysts had expected a decline of 2 million barrels.
Shares of Aventine Renewable Energy Holdings Inc. posted the largest gain in the sector after BB&T analyst Heather L. Jones upgraded the stock to "Buy" from "Hold." Jones said the stock is trading at a discount, and should rise to $19 over the next year. Shares rose $1.22, or 8 percent, to $16.39.
Elsewhere in the sector, shares of Pacific Ethanol Inc., which reports second-quarter earnings after the bell, gained 75 cents, or 6.2 percent, to $12.77.
Andersons Inc. shares added 52 cents, or 2.9 percent, to $48.28.
Shares of Archer Daniels Midland Co., the largest ethanol producer in the U.S., picked up 52 cents to $35.19.
US BioEnergy Corp. stock rose 55 cents, or 5.2 percent, to $11.15.
VeraSun Energy Corp. shares advanced 51 cents, or 3.6 percent, to $14.55.
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