Fermi (NASDAQ:FRMI) Shares Down 5.7% - Should You Sell?

Key Points

• Shares fell 5.7% to about $9.24 (intraday low $9.12) on Monday with roughly 997,603 shares traded, an 86% drop from the stock's average daily volume of ~7.22 million.
• Wall Street remains optimistic: the MarketBeat consensus is a "Buy" with an average price target of $31.56 and multiple firms issuing Buy/Strong-Buy ratings and $30–$37 targets.
• Fermi is still unprofitable (market cap ~$5.66 billion, PE -10.96) after reporting a ($0.84) EPS last quarter, while pursuing an AI-focused power business planning 1.1 GW online by end of 2026 and up to 11 GW long-term.

Fermi Inc. (NASDAQ:FRMI - Get Free Report) was down 5.7% on Monday . The stock traded as low as $9.12 and last traded at $9.24. Approximately 997,603 shares changed hands during trading, a decline of 86% from the average daily volume of 7,217,184 shares. The stock had previously closed at $9.80.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on FRMI. Macquarie reaffirmed an "outperform" rating and issued a $35.00 price objective on shares of Fermi in a research note on Wednesday, November 12th. Berenberg Bank started coverage on shares of Fermi in a research report on Monday, October 27th. They issued a "buy" rating and a $37.00 price target for the company. UBS Group initiated coverage on shares of Fermi in a research note on Monday, October 27th. They set a "buy" rating and a $30.00 price target for the company. Rothschild Redb raised shares of Fermi to a "strong-buy" rating in a research note on Monday, October 27th. Finally, Redburn Partners set a $31.00 price objective on Fermi in a report on Monday, October 27th. Three research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average target price of $31.56.

Fermi Stock Performance

The firm has a 50-day moving average of $11.55. The stock has a market cap of $5.66 billion and a PE ratio of -10.96.

Fermi (NASDAQ:FRMI - Get Free Report) last announced its earnings results on Monday, November 10th. The company reported ($0.84) earnings per share for the quarter.

Institutional Investors Weigh In On Fermi

A number of hedge funds have recently added to or reduced their stakes in FRMI. Capelight Capital Asset Management LP bought a new position in shares of Fermi during the 4th quarter worth approximately $292,000. Choreo LLC acquired a new position in shares of Fermi during the 4th quarter valued at $98,000. Prime Capital Investment Advisors LLC bought a new position in Fermi during the fourth quarter worth $84,000. Aspect Partners LLC acquired a new stake in Fermi in the fourth quarter worth $38,000. Finally, Nisa Investment Advisors LLC bought a new stake in Fermi in the fourth quarter valued at $423,000.

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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