Fermi (NASDAQ:FRMI) Trading 6.1% Higher - Here's Why

Key Points

• Fermi shares rose 6.1% in Friday trading, briefly reaching $6.24 before last trading at $6.2940. Volume was lighter than usual, with about 8.28 million shares traded versus a 13.95 million average.
• Analyst sentiment has softened recently: Evercore and UBS both cut ratings, while Stifel lowered its price target. The stock now carries a consensus Moderate Buy rating, but the average target price of $22.44 remains well above the current share price.
• Fermi reported a quarterly loss of $0.30 per share, missing expectations, and insiders have been selling shares in recent months. The company is positioning itself as an AI infrastructure and power provider, with plans for up to 11 GW of low-carbon power capacity.

Fermi Inc. (NASDAQ:FRMI - Get Free Report) shares were up 6.1% on Friday . The company traded as high as $6.24 and last traded at $6.2940. Approximately 8,282,182 shares were traded during mid-day trading, a decline of 41% from the average session volume of 13,950,954 shares. The stock had previously closed at $5.93.

Analyst Ratings Changes

Several equities analysts have recently weighed in on FRMI shares. Evercore lowered shares of Fermi from an "outperform" rating to an "in-line" rating and set a $11.00 price objective on the stock. in a research report on Friday, May 15th. Wall Street Zen lowered shares of Fermi from a "hold" rating to a "sell" rating in a research note on Sunday, May 10th. Cantor Fitzgerald assumed coverage on shares of Fermi in a report on Thursday, April 9th. They issued an "overweight" rating and a $8.00 price target on the stock. Stifel Nicolaus cut their price objective on shares of Fermi from $29.00 to $17.00 and set a "buy" rating for the company in a research report on Tuesday, June 23rd. Finally, UBS Group cut 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. Two equities research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $22.44.

Fermi Stock Up 5.0%

The stock has a 50 day moving average price of $7.10 and a 200 day moving average price of $7.57. The stock has a market capitalization of $3.97 billion and a price-to-earnings ratio of -5.46.

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

Insider Activity at Fermi

In other Fermi news, insider Mesut Uzman sold 79,509 shares of the stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $6.31, for a total transaction of $501,701.79. Following the completion of the transaction, the insider directly 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. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director James Richard Perry sold 863,637 shares of the business's stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $7.31, for a total value of $6,313,186.47. Following the sale, the director owned 15,827,807 shares in the company, valued at approximately $115,701,269.17. The trade was a 5.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 1,022,178 shares of company stock worth $7,313,580.

Institutional Investors Weigh In On Fermi

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Leonteq Securities AG bought a new position in Fermi during the fourth quarter valued at approximately $30,000. PNC Financial Services Group Inc. purchased a new stake in Fermi in the fourth quarter worth $36,000. Aspect Partners LLC bought a new position in shares of Fermi during the fourth quarter valued at approximately $38,000. SBI Securities Co. Ltd. bought a new stake in Fermi during the 4th quarter valued at about $41,000. Finally, NewEdge Advisors LLC purchased a new stake in shares of Fermi during the 1st quarter valued at 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.