What happened Shares of Gevo (NASDAQ: GEVO) were rallying again today as the renewable energy company said it has closed on a recent $350 million stock offering, and an analyst lifted his price target on the stock. As of 2:54 p.m. EST, the stock was up 29%. Image source: Getty Images. So what Gevo, which specializes in converting crops like corn into traditional fuels like gasoline and jet fuel, said that it closed on the stock offering this morning after initially announcing the move last Wednesday. The company sold 43.75 million shares at $8 each and will receive $321.7 million after fees, which it plans to use for capital projects (including the new Net-Zero 1 plant in South Dakota) as well as working capital and general corporate purposes. Notably, the stock actually fell last week when the company announced the stock sale, so it's unclear if the closing was material in today's gain, though the offer does show strong demand for the stock. A clear endorsement for Gevo came from Noble Capital Markets' Poe Fratt, who lifted his rating to $16 from $8.25 in part because of the "massive" equity offering, which he said will give the company about $534 million in pro forma cash. He also believes that the funding will make up the majority of the equity necessary for the company's first two Net-Zero plants. Fratt maintained his outperform rating on the stock. Now what Gevo's stock has skyrocketed since the company announced in December that it would be opening its new Net-Zero 1 plant in South Dakota. The stock has historically been a laggard, but has found new life amid bullish hopes in the renewable energy sector, and its unique technology separates it from most alternative-fuel stocks. Still, investors should be aware that high expectations are now baked into what's essentially a development-stage company. Gevo's market cap exceeded $2 billion today, but the company only brought in $5 million in revenue in the first three quarters of 2020. 10 stocks we like better than Gevo, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Gevo, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source