Fermi (NASDAQ:FRMI) Trading Down 6.7% - What's Next?

Key Points

• Fermi (NASDAQ:FRMI) traded down 6.7% to about $5.53 on Friday with 3.6M shares changing hands (a 67% drop from its average session volume), leaving the stock well below its 50‑day ($7.43) and 200‑day ($12.76) moving averages and with a market cap near $3.5B.
• Insiders have been significant net sellers recently—including COO Blanes Jacobo Ortiz and major shareholder Griffin Perry—with insiders disposing of 13,435,207 shares worth roughly $67.8M over the past 90 days (Griffin Perry sold 9,000,000 shares for about $45.2M).
• Despite the weakness and insider sales, analysts maintain an overall "Buy" consensus for Fermi with an average price target of $26.89, though ratings range from Strong Buy to Sell.

Fermi Inc. (NASDAQ:FRMI - Get Free Report) traded down 6.7% during mid-day trading on Friday . The company traded as low as $5.69 and last traded at $5.5260. 3,603,562 shares were traded during trading, a decline of 67% from the average session volume of 10,767,290 shares. The stock had previously closed at $5.92.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. Citizens Jmp assumed coverage on shares of Fermi in a report on Monday, February 9th. They set a "market outperform" rating and a $30.00 price objective for the company. Cantor Fitzgerald assumed coverage on shares of Fermi in a research note on Thursday, April 9th. They issued an "overweight" rating and a $8.00 price target for the company. Wall Street Zen downgraded shares of Fermi from a "hold" rating to a "sell" rating in a research note on Saturday, March 28th. Citigroup assumed coverage on shares of Fermi in a research note on Monday, February 9th. They issued an "outperform" rating for the company. Finally, Texas Capital raised shares of Fermi to a "strong-buy" rating in a research note on Tuesday, January 20th. Three analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Fermi presently has an average rating of "Buy" and an average target price of $26.89.

Fermi Price Performance

The firm's 50 day moving average price is $7.43 and its 200 day moving average price is $12.76. The stock has a market capitalization of $3.50 billion and a P/E ratio of -6.60.

Insider Activity at Fermi

In related news, COO Blanes Jacobo Ortiz sold 427,363 shares of the business's stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of $4.58, for a total transaction of $1,957,322.54. Following the transaction, the chief operating officer owned 5,469,092 shares in the company, valued at $25,048,441.36. The trade was a 7.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Griffin Perry sold 9,000,000 shares of the business's stock in a transaction dated Monday, March 30th. The shares were sold at an average price of $5.02, for a total transaction of $45,180,000.00. Following the transaction, the insider owned 62,946,450 shares in the company, valued at $315,991,179. This represents a 12.51% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 13,435,207 shares of company stock worth $67,803,539 over the last ninety days.

Hedge Funds Weigh In On Fermi

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Leonteq Securities AG purchased a new stake in Fermi in the fourth quarter worth about $30,000. PNC Financial Services Group Inc. purchased a new stake in shares of Fermi during the fourth quarter valued at approximately $36,000. Aspect Partners LLC purchased a new stake in shares of Fermi during the fourth quarter valued at approximately $38,000. SBI Securities Co. Ltd. purchased a new stake in shares of Fermi during the fourth quarter valued at approximately $41,000. Finally, MML Investors Services LLC bought a new position in Fermi during the fourth quarter valued at approximately $81,000.

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.