Fermi (NASDAQ:FRMI) Shares Gap Down After Earnings Miss

Key Points

• Fermi shares fell sharply after the company reported weaker-than-expected quarterly results, opening at $6.66 versus the prior close of $7.37 and last trading around $6.91.
• The company posted a loss of $0.30 per share, missing the consensus estimate of a $0.05 loss, and also reported a first-quarter loss of about $189 million as it continues heavy investment in expansion.
• Despite the earnings miss, Fermi has ongoing project momentum, including progress toward a binding tenant agreement, expectations for a 5 GW permit by Q4, and more than $785 million in new equipment financing.

Shares of Fermi Inc. (NASDAQ:FRMI - Get Free Report) gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $7.37, but opened at $6.66. Fermi shares last traded at $6.9110, with a volume of 3,395,591 shares.

The company reported ($0.30) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.25).

More Fermi News

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Fermi said it is progressing toward a binding tenant agreement within the next 90 days and expects a 5 GW permit by Q4, reinforcing the bull case that its AI power-campus strategy is moving from concept toward commercialization. Fermi outlines 90-day plan targeting a binding tenant agreement while expecting 5 GW permit by Q4
• Positive Sentiment: In its Q1 update, Fermi highlighted over 2 GW of power generation secured, roughly 11 GW of permitted capacity advancing at Project Matador, and about $785 million in new equipment financing, all of which suggest meaningful project momentum and improved funding visibility. Fermi Inc. Outlines Fermi 2.0 Strategic Evolution and Reports First Quarter 2026 Financial Results
• Positive Sentiment: Unusually large call-option buying and elevated trading volume point to strong speculative interest, which may be amplifying the stock’s move as traders bet on further upside. Fermi jumps as Q1 update highlights financing progress and power-campus milestones
• Positive Sentiment: Fermi’s governance changes, including new bylaws meant to strengthen shareholder protections, may be viewed positively by investors following recent leadership disputes. Fermi Board Amends Bylaws to Protect Interests of Shareholders
• Neutral Sentiment: Broker coverage remains mixed, with Evercore downgrading Fermi from “outperform” to “in-line” and setting an $11 price target, while other brokerage summaries still show an overall “Moderate Buy” stance. Fermi Inc. Receives Average Recommendation of Moderate Buy from Brokerages
• Negative Sentiment: The company reported a first-quarter loss of about $189 million, missing earnings expectations, underscoring that Fermi is still burning cash as it invests heavily in expansion. Fermi posts $189 million first-quarter loss as project investment accelerates
• Negative Sentiment: Ongoing governance conflict with the ousted CEO and efforts to block a shareholder meeting continue to create overhang and headline risk for the stock. Fermi Can’t Stop Shareholder Meeting Planned by Ousted CEO

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Evercore cut shares of Fermi from an "outperform" rating to an "in-line" rating and set a $11.00 price target for the company. in a research note on Friday. Texas Capital upgraded shares of Fermi to a "strong-buy" rating in a research note on Tuesday, January 20th. Wall Street Zen cut shares of Fermi from a "hold" rating to a "sell" rating in a report on Sunday, May 10th. UBS Group cut Fermi from a "buy" rating to a "neutral" rating and set a $6.00 price target for the company. in a report on Tuesday, May 5th. Finally, Cantor Fitzgerald began coverage on Fermi in a research report on Thursday, April 9th. They set an "overweight" rating and a $8.00 price target on the stock. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, three have assigned a Hold rating and one has issued 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 price target of $23.78.

Insider Buying and Selling at Fermi

In related news, major shareholder Griffin Perry sold 9,000,000 shares of the business's stock in a transaction that occurred on Monday, March 30th. The stock was sold at an average price of $5.02, for a total value of $45,180,000.00. Following the completion of the sale, the insider directly owned 62,946,450 shares in the company, valued at approximately $315,991,179. The trade was a 12.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible 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 stock was sold at an average price of $4.58, for a total value of $1,955,678.32. Following the transaction, the chief financial officer owned 9,969,791 shares in the company, valued at approximately $45,661,642.78. This trade represents a 4.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 13,435,207 shares of company stock worth $67,803,539.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of FRMI. Balyasny Asset Management L.P. acquired a new position in Fermi in the fourth quarter valued at about $16,549,000. M&G PLC acquired a new stake in Fermi during the fourth quarter worth about $14,443,000. Renaissance Technologies LLC increased its holdings in Fermi by 311.3% in the 1st quarter. Renaissance Technologies LLC now owns 1,403,700 shares of the company's stock valued at $8,198,000 after buying an additional 1,062,400 shares during the period. Nuveen LLC acquired a new position in shares of Fermi in the 4th quarter valued at approximately $11,067,000. Finally, Millennium Management LLC acquired a new position in shares of Fermi in the 4th quarter valued at approximately $10,871,000.

Fermi Stock Performance

The company has a market cap of $4.49 billion and a P/E ratio of -8.38. The stock's fifty day moving average price is $6.27 and its two-hundred day moving average price is $10.68.

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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