Fermi (NASDAQ:FRMI) Given New $11.00 Price Target at Mizuho

Key Points

• Mizuho cut Fermi’s price target from $27 to $11 but maintained an “outperform” rating, implying 52.14% upside from the prior close.
• Analyst sentiment is mixed: Fermi has a consensus “Moderate Buy” rating and $20.67 price target, although several firms recently downgraded the stock or reduced their targets.
• Fermi shares opened at $7.23, while the company reported a quarterly EPS loss of $0.30—$0.25 worse than expectations—and insiders sold more than 1 million shares over the past three months.

Fermi (NASDAQ:FRMI - Get Free Report) had its target price lowered by Mizuho from $27.00 to $11.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Mizuho's price target points to a potential upside of 52.14% from the stock's previous close.

Other analysts also recently issued reports about the company. Wall Street Zen downgraded Fermi from a "hold" rating to a "sell" rating in a research note on Sunday, May 10th. Evercore downgraded Fermi from an "outperform" rating to an "in-line" rating and set a $11.00 price target on the stock. in a research note on Friday, May 15th. Stifel Nicolaus cut their price target on Fermi from $29.00 to $17.00 and set a "buy" rating on the stock in a report on Tuesday, June 23rd. UBS Group cut Fermi from a "buy" rating to a "neutral" rating and set a $6.00 price objective for the company. in a research note on Tuesday, May 5th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Fermi in a report on Thursday, July 2nd. Two investment analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $20.67.

Fermi Stock Down 2.3%

Shares of NASDAQ FRMI opened at $7.23 on Tuesday. The firm has a market cap of $4.61 billion and a PE ratio of -6.34. Fermi has a 12-month low of $4.47 and a 12-month high of $36.99. The company's fifty day simple moving average is $7.18 and its 200 day simple moving average is $7.49.

Fermi (NASDAQ:FRMI - Get Free Report) last posted its quarterly earnings results on Thursday, May 14th. The company reported ($0.30) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.25). On average, equities analysts predict that Fermi will post 0.34 earnings per share for the current year.

Insider Activity at Fermi

In related news, insider Mesut Uzman sold 79,509 shares of Fermi stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $6.31, for a total transaction of $501,701.79. Following the transaction, the insider owned 670,491 shares of the company's stock, valued at $4,230,798.21. The trade was a 10.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director James Richard Perry sold 863,637 shares of the company's stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $7.31, for a total value of $6,313,186.47. Following the sale, the director owned 15,827,807 shares of the company's stock, valued at $115,701,269.17. This trade represents a 5.17% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 1,022,178 shares of company stock valued at $7,313,580.

Hedge Funds Weigh In On Fermi

A number of hedge funds have recently bought and sold shares of the company. Leonteq Securities AG bought a new stake in shares of Fermi in the 4th quarter worth $30,000. PNC Financial Services Group Inc. bought a new position in shares of Fermi during the fourth quarter valued at about $36,000. Aspect Partners LLC purchased a new position in Fermi during the fourth quarter worth about $38,000. SBI Securities Co. Ltd. bought a new stake in Fermi in the 4th quarter worth about $41,000. Finally, NewEdge Advisors LLC bought a new stake in Fermi in the 1st quarter worth about $54,000.

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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