Fermi (NASDAQ:FRMI) Shares Up 6% - Here's What Happened

Key Points

• Fermi shares jumped about 6% mid-day to roughly $6.21 on Thursday while trading 2.3M shares (well below the ~10.6M average), leaving the company with a market cap near $3.73B and a negative PE of -7.06.
• Analysts show a mixed but overall positive view with a consensus Buy rating and an average price target of $26.89 (three Strong Buy, eight Buy, one Hold, one Sell).
• Insiders have been selling heavily — 13,435,207 shares valued at about $67.8M were sold in the last 90 days, including a 9M-share sale by major shareholder Griffin Perry.

Fermi Inc. (NASDAQ:FRMI - Get Free Report)'s stock price shot up 6% during mid-day trading on Thursday . The company traded as high as $6.07 and last traded at $6.2140. 2,307,520 shares were traded during mid-day trading, a decline of 78% from the average session volume of 10,616,102 shares. The stock had previously closed at $5.86.

Analyst Ratings Changes

A number of brokerages have recently issued reports on FRMI. Citizens Jmp began coverage on Fermi in a report on Monday, February 9th. They issued a "market outperform" rating and a $30.00 price target on the stock. Texas Capital upgraded Fermi to a "strong-buy" rating in a report on Tuesday, January 20th. Wall Street Zen downgraded Fermi from a "hold" rating to a "sell" rating in a report on Saturday, March 28th. Cantor Fitzgerald began coverage on Fermi in a report on Thursday, April 9th. They issued an "overweight" rating and a $8.00 price target on the stock. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Fermi in a report on Monday, March 23rd. Three investment analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $26.89.

Fermi Stock Performance

The company has a 50 day moving average of $7.49 and a two-hundred day moving average of $12.81. The stock has a market capitalization of $3.73 billion and a PE ratio of -7.06.

Insiders Place Their Bets

In related news, insider Charles Lynn Hamilton sold 398,140 shares of the business's stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $4.58, for a total transaction of $1,823,481.20. Following the transaction, the insider directly owned 5,525,910 shares in the company, valued at $25,308,667.80. The trade was a 6.72% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, major shareholder Griffin Perry sold 9,000,000 shares of the business's stock in a transaction 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 transaction, the insider owned 62,946,450 shares in the company, valued at approximately $315,991,179. This trade represents a 12.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 13,435,207 shares of company stock valued at $67,803,539 in the last 90 days.

Institutional Trading of Fermi

Several large investors have recently added to or reduced their stakes in the company. Janney Montgomery Scott LLC purchased a new stake in Fermi during the 1st quarter valued at about $91,000. Hsbc Holdings PLC purchased a new stake in Fermi during the 4th quarter valued at about $1,056,000. Invesco Ltd. purchased a new stake in Fermi during the 4th quarter valued at about $8,284,000. Axxcess Wealth Management LLC purchased a new stake in Fermi during the 4th quarter valued at about $604,000. Finally, XTX Topco Ltd purchased a new stake in Fermi during the 4th quarter valued at about $1,149,000.

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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