Fermi (NASDAQ:FRMI) Cut to In-Line at Evercore

Key Points

• Evercore downgraded Fermi from “outperform” to “in-line” while keeping an $11 price target, which still implies about 49% upside from the prior close.
• Analyst sentiment remains mixed but constructive: the stock’s overall consensus is a Moderate Buy, though recent calls have ranged from strong-buy to sell, with UBS also recently cutting its rating to neutral.
• Fermi reported a weak quarter, posting EPS of -$0.30 and missing estimates, even as the company advances its AI-focused “Fermi 2.0” plan and highlights major power-generation and financing progress.

Fermi (NASDAQ:FRMI - Get Free Report) was downgraded by analysts at Evercore from an "outperform" rating to an "in-line" rating in a report released on Friday. They presently have a $11.00 price objective on the stock. Evercore's price target would indicate a potential upside of 49.25% from the company's previous close.

Several other equities analysts have also recently issued reports on FRMI. Texas Capital raised Fermi to a "strong-buy" rating in a research note on Tuesday, January 20th. Citigroup started coverage on shares of Fermi in a report on Monday, February 9th. They issued an "outperform" rating on the stock. Citizens Jmp initiated coverage on shares of Fermi in a report on Monday, February 9th. They issued a "market outperform" rating and a $30.00 price objective for the company. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Fermi in a research note on Monday, March 23rd. Finally, UBS Group cut shares of Fermi from a "buy" rating to a "neutral" rating and set a $6.00 price target on the stock. in a research report on Tuesday, May 5th. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Fermi currently has a consensus rating of "Moderate Buy" and a consensus target price of $23.78.

Fermi Trading Up 22.8%

Shares of NASDAQ:FRMI opened at $7.37 on Friday. The company has a 50-day moving average price of $6.27 and a 200-day moving average price of $10.68. The company has a market cap of $4.70 billion and a price-to-earnings ratio of -8.77. Fermi has a 12 month low of $4.47 and a 12 month high of $36.99.

Fermi (NASDAQ:FRMI - Get Free Report) last posted its earnings results on Thursday, May 14th. The company reported ($0.30) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.25). As a group, research analysts forecast that Fermi will post 0.4 EPS for the current fiscal year.

Insider Transactions at Fermi

In other Fermi news, insider Charles Lynn Hamilton sold 398,140 shares of the stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $4.58, for a total value of $1,823,481.20. Following the completion of the transaction, the insider owned 5,525,910 shares in the company, valued at approximately $25,308,667.80. This represents a 6.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Miles E. Everson sold 427,004 shares of the firm's stock in a transaction on Thursday, April 9th. The shares were sold at an average price of $4.58, for a total value of $1,955,678.32. Following the transaction, the chief financial officer directly owned 9,969,791 shares of the company's stock, valued at $45,661,642.78. This represents a 4.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 13,435,207 shares of company stock worth $67,803,539 in the last ninety days.

Institutional Investors Weigh In On Fermi

Several hedge funds have recently bought and sold shares of FRMI. Leonteq Securities AG purchased a new stake in Fermi in the fourth quarter worth about $30,000. PNC Financial Services Group Inc. bought a new stake in shares of Fermi in the 4th quarter worth approximately $36,000. Aspect Partners LLC purchased a new stake in shares of Fermi in the 4th quarter worth approximately $38,000. SBI Securities Co. Ltd. bought a new position in Fermi during the 4th quarter valued at approximately $41,000. Finally, MML Investors Services LLC bought a new position in Fermi during the 4th quarter valued at approximately $81,000.

Key Headlines Impacting Fermi

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Fermi said it is advancing “Fermi 2.0,” highlighting more than 2 GW of power generation secured, roughly 11 GW of permitted capacity at Project Matador, and about $785 million in new equipment financing, which strengthened the bull case for its growth plan. Fermi Inc. Outlines Fermi 2.0 Strategic Evolution and Reports First Quarter 2026 Financial Results
• Positive Sentiment: The company said it expects to secure a binding tenant agreement within 90 days and is targeting a 5 GW permit by the fourth quarter, suggesting meaningful commercial momentum if executed. Seeking Alpha article on 90-day plan
• Positive Sentiment: Traders also appeared to chase the stock on unusually heavy call-option activity, which likely amplified the move and reflected rising speculation around the turnaround story.
• Neutral Sentiment: Brokerage sentiment was also supportive, with Fermi receiving an average “Moderate Buy” recommendation, reinforcing a constructive but not unanimous outlook. Fermi Receives Average Recommendation of Moderate Buy from Brokerages
• Neutral Sentiment: Fermi’s board amended bylaws to require 70% shareholder approval for board changes, a governance move aimed at stabilizing control amid an ongoing dispute with the former CEO. Fermi Board Amends Bylaws to Protect Interests of Shareholders
• Negative Sentiment: The quarterly results were weak: Fermi reported a first-quarter loss of about $189 million and EPS of $(0.30), well below expectations, underscoring that the business is still spending heavily to build out its platform. Fermi posts $189 million first-quarter loss as project investment accelerates

About Fermi

Fermi's mission is to power the artificial intelligence (“AI”) needs of tomorrow. We are an advanced energy and hyperscaler development company purpose-built for the AI era. Our mission is to deliver up to 11 gigawatts (“GW”) of low-carbon, HyperRedundant™, and on-demand power directly to the world's most compute-intensive businesses with 1.1 GW of power projected to be online by the end of 2026. We have entered into a long-term lease on a site large enough to simultaneously house the next three largest data center campuses by square footage currently in existence.

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