Fermi (NASDAQ:FRMI) Stock Price Down 6.9% - Here's Why

Key Points

• Fermi shares fell 6.9% to about $6.89 in Monday trading, with volume significantly below the stock’s average daily level.
• Recent analyst sentiment has weakened, including rating cuts from Wall Street Zen, UBS, Evercore and Weiss Ratings, although the overall consensus remains “Moderate Buy” with a $22.44 target price.
• Fermi’s latest quarterly results missed expectations, reporting a loss of $0.30 per share versus a projected loss of $0.05, while insiders have sold more than 1 million shares worth approximately $7.3 million over the past 90 days.

Fermi Inc. (NASDAQ:FRMI - Get Free Report)'s share price fell 6.9% on Monday . The company traded as low as $7.06 and last traded at $6.8860. 3,387,097 shares changed hands during mid-day trading, a decline of 76% from the average daily volume of 14,105,857 shares. The stock had previously closed at $7.40.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on FRMI shares. Wall Street Zen lowered shares of Fermi from a "hold" rating to a "sell" rating in a report on Sunday, May 10th. Weiss Ratings reissued a "sell (d-)" rating on shares of Fermi in a research note on Thursday, July 2nd. 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 note on Tuesday, May 5th. Cantor Fitzgerald began coverage on Fermi in a research report on Thursday, April 9th. They issued an "overweight" rating and a $8.00 price objective for the company. Finally, Evercore cut shares of Fermi from an "outperform" rating to an "in-line" rating and set a $11.00 target price for the company. in a research report on Friday, May 15th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $22.44.

Fermi Stock Performance

The stock has a market capitalization of $4.59 billion and a price-to-earnings ratio of -6.32. The firm's fifty day simple moving average is $7.17 and its 200 day simple moving average is $7.50.

Fermi (NASDAQ:FRMI - Get Free Report) last announced its earnings results on Thursday, May 14th. The company reported ($0.30) earnings per share for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.25). Analysts forecast that Fermi Inc. will post 0.34 earnings per share for the current year.

Insider Buying and Selling at Fermi

In related news, Director James Richard Perry sold 863,637 shares of the stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $7.31, for a total transaction of $6,313,186.47. Following the completion of the transaction, the director owned 15,827,807 shares in the company, valued at approximately $115,701,269.17. This represents a 5.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Mesut Uzman sold 79,509 shares of the stock in a transaction dated 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 approximately $4,230,798.21. This represents a 10.60% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,022,178 shares of company stock valued at $7,313,580 in the last 90 days.

Hedge Funds Weigh In On Fermi

A number of hedge funds and other institutional investors have recently bought and sold shares of FRMI. Handelsbanken Fonder AB bought a new stake in Fermi in the 2nd quarter valued at $511,000. Financial Management Professionals Inc. bought a new stake in Fermi in the 2nd quarter valued at about $104,000. Byrne Asset Management LLC bought a new stake in shares of Fermi in the second quarter valued at approximately $109,000. M.E. Allison & CO. Inc. bought a new stake in shares of Fermi during the 2nd quarter valued at $137,000. Finally, NewEdge Advisors LLC acquired a new stake in Fermi during the first quarter worth about $54,000.

Fermi Company Profile

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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