Fermi (NASDAQ:FRMI) Stock Price Up 6.1% - Still a Buy?

Key Points

• Fermi shares rose 6.1% on Friday, trading as high as $6.77 and closing near $6.71, though volume was below average at about 5.33 million shares.
• Analyst sentiment remains mixed: UBS cut the stock to neutral, Evercore downgraded it, and Weiss Ratings reiterated a sell, while the overall consensus is still a Moderate Buy with a $22.44 target price.
• The company reported a wider-than-expected loss of $0.30 per share in its latest quarter, and insiders have been selling shares recently, even as some hedge funds increased or initiated positions.

Fermi Inc. (NASDAQ:FRMI - Get Free Report) shares shot up 6.1% on Friday . The company traded as high as $6.77 and last traded at $6.7050. Approximately 5,330,367 shares traded hands during mid-day trading, a decline of 62% from the average session volume of 13,918,546 shares. The stock had previously closed at $6.32.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. UBS Group lowered shares of Fermi from a "buy" rating to a "neutral" rating and set a $6.00 price objective for the company. in a report on Tuesday, May 5th. Stifel Nicolaus decreased their price objective on Fermi from $29.00 to $17.00 and set a "buy" rating on the stock in a research report on Tuesday, June 23rd. Evercore downgraded shares of Fermi from an "outperform" rating to an "in-line" rating and set a $11.00 target price on the stock. in a research note on Friday, May 15th. Cantor Fitzgerald initiated coverage on Fermi in a research note on Thursday, April 9th. They set an "overweight" rating and a $8.00 price target for the company. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Fermi in a research report on Thursday, July 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $22.44.

Fermi Trading Up 14.6%

The business's 50-day moving average price is $7.15 and its 200-day moving average price is $7.51. The stock has a market cap of $4.62 billion and a PE ratio of -6.36.

Fermi (NASDAQ:FRMI - Get Free Report) last issued its quarterly earnings data on Thursday, May 14th. The company reported ($0.30) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.25). As a group, analysts predict that Fermi Inc. will post 0.34 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Mesut Uzman sold 79,509 shares of the firm's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $6.31, for a total value of $501,701.79. Following the completion of the transaction, the insider directly owned 670,491 shares in the company, valued at $4,230,798.21. This trade represents a 10.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director James Richard Perry sold 863,637 shares of Fermi stock in a transaction that occurred 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 sale, the director owned 15,827,807 shares of the company's stock, valued at approximately $115,701,269.17. The trade was a 5.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 1,022,178 shares of company stock valued at $7,313,580.

Hedge Funds Weigh In On Fermi

Institutional investors and hedge funds have recently modified their holdings of the stock. Weiss Asset Management LP lifted its holdings in Fermi by 431.6% in the first quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company's stock valued at $14,104,000 after acquiring an additional 1,960,764 shares during the period. Balyasny Asset Management L.P. purchased a new stake in Fermi during the 4th quarter worth approximately $16,549,000. M&G PLC purchased a new stake in shares of Fermi during the fourth quarter worth approximately $14,443,000. Renaissance Technologies LLC raised its position in shares of Fermi by 311.3% in the first 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 last quarter. Finally, Nuveen LLC acquired a new stake in Fermi in the 4th quarter valued at about $11,067,000.

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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