Fermi Inc. (FRMI) - What Are Brokerages Saying About This Stock?

Key Points

• Analyst sentiment is broadly positive but mixed: Fermi has a “Moderate Buy” consensus among 10 analysts, with an average 12-month price target of $16.86; several firms have recently cut their targets.
• The shares have plunged: FRMI opened at $1.53, near its 52-week low of $1.44 and far below its $27.07 high.
• Risks are weighing on sentiment: Major shareholder Toby Neugebauer sold millions of shares, while a missed data-center lease deadline has raised questions about the project and future cash flow.

Shares of Fermi Inc. (NASDAQ:FRMI - Get Free Report) have been given a consensus rating of "Moderate Buy" by the ten analysts that are currently covering the company, MarketBeat.com reports. One analyst has rated the stock with a sell rating, two have given a hold rating, six have assigned a buy rating and one has issued a strong buy rating on the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $16.86.

FRMI has been the subject of a number of recent analyst reports. Weiss Ratings downgraded shares of Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday, August 14th. Cantor Fitzgerald reduced their price target on shares of Fermi from $12.00 to $8.00 and set an "overweight" rating on the stock in a research report on Friday, October 16th. Finally, Mizuho lowered their price objective on shares of Fermi from $27.00 to $11.00 and set an "outperform" rating for the company in a research note on Tuesday, July 28th.

Fermi Stock Down 15.9%

NASDAQ FRMI opened at $1.53 on Friday. Fermi has a 52 week low of $1.44 and a 52 week high of $27.07. The business's fifty day simple moving average is $3.95 and its 200-day simple moving average is $6.35. The firm has a market cap of $981.13 million and a PE ratio of -1.30.

Fermi (NASDAQ:FRMI - Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The company reported ($0.04) earnings per share for the quarter, beating the consensus estimate of ($0.06) by $0.02. During the same quarter last year, the firm posted ($0.02) EPS. Research analysts expect that Fermi will post -0.33 EPS for the current year.

Key Stories Impacting Fermi

Here are the key news stories impacting Fermi this week:

• Neutral Sentiment: Reports clarified that an emergency alert involving the Fermi II nuclear plant in Newport was sent accidentally during a drill; officials said there was no emergency. This concerns the nuclear facility, not Fermi Inc., so it appears to have little direct bearing on FRMI. Read More. · Read More.
• Neutral Sentiment: Fermi held its annual shareholder meeting and board vote on October 30. The available report does not provide details suggesting a material change in the company’s outlook. Read More.
• Negative Sentiment: Major shareholder Toby Neugebauer reported selling 5 million shares on Nov. 5, 94,000 shares on Nov. 4, and 2.56 million shares on Nov. 3—about 7.66 million shares in total. Such substantial insider selling may weigh on sentiment, although the filings do not establish the reason for the sales. Read More.
• Negative Sentiment: Coverage says a data-center lease deadline passed, raising investor questions about the lease and its implications for Fermi’s cash-flow outlook. One report linked the missed deadline to a sharp share decline; the supplied articles do not specify definitive lease terms or a resolution. Read More. · Read More.

Insiders Place Their Bets

In other Fermi news, major shareholder Toby Neugebauer sold 5,000,000 shares of the stock in a transaction that occurred on Thursday, November 5th. The shares were sold at an average price of $1.52, for a total transaction of $7,600,000.00. Following the sale, the insider directly owned 84,813,010 shares in the company, valued at $128,915,775.20. This represents a 5.57% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Over the last quarter, insiders have sold 12,125,749 shares of company stock worth $28,639,969. 2.83% of the stock is owned by corporate insiders.

Institutional Trading of Fermi

Large investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new stake in shares of Fermi in the 2nd quarter valued at $38,499,000. BlueCrest Capital Management Ltd purchased a new stake in shares of Fermi during the 2nd quarter worth $33,276,000. Alyeska Investment Group L.P. lifted its position in shares of Fermi by 82.4% during the 2nd quarter. Alyeska Investment Group L.P. now owns 2,886,836 shares of the company's stock worth $26,443,000 after purchasing an additional 1,303,979 shares during the last quarter. Weiss Asset Management LP grew its stake in shares of Fermi by 431.6% during the first quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company's stock worth $14,104,000 after purchasing an additional 1,960,764 shares in the last quarter. Finally, Ratan Capital Management LP acquired a new position in shares of Fermi during the second quarter worth $19,774,000.

Fermi Company Profile

Fermi, Inc NASDAQ: FRMI is an energy and infrastructure company focused on developing large-scale power and data center facilities for artificial intelligence and other high-performance computing applications. Its business model centers on integrating electricity generation, energy storage and data center infrastructure within a single campus.

The company's principal development is Project Matador, a planned energy and data center campus in the Texas Panhandle. The project is designed to use a mix of power sources, including nuclear energy, natural gas, solar generation and battery storage, with the goal of providing reliable electricity for data center customers.

Fermi's activities are currently concentrated in the United States, particularly Texas.

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