Fermi Sees Unusually Large Options Volume (NASDAQ:FRMI)

Key Points

• Options activity surged: Traders purchased 95,560 FRMI call options, about 63% above typical volume, signaling increased speculative bullish interest. Shares rose $1.24 to $7.12 on unusually heavy trading volume.
• Fermi announced major AI-power agreements: A 15-year TensorWave lease could generate approximately $6.5 billion in contracted revenue, while a separate Hillcore alliance would develop a 2.6-gigawatt power complex and help expand Fermi’s marketed capacity.
• Execution and financial risks remain significant: Analysts have cut price targets and some downgraded the stock, while Fermi continues to face challenges financing and building its large planned infrastructure. The company recently missed quarterly EPS estimates, and insiders sold more than 1 million shares in the last quarter.

Fermi Inc. (NASDAQ:FRMI - Get Free Report) was the target of unusually large options trading on Tuesday. Traders bought 95,560 call options on the company. This represents an increase of approximately 63% compared to the typical volume of 58,756 call options.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on FRMI shares. Weiss Ratings restated a "sell (d-)" rating on shares of Fermi in a research note on Thursday, July 2nd. Wall Street Zen lowered shares of Fermi from a "hold" rating to a "sell" rating in a research note on Sunday, May 10th. 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. Mizuho reduced their price objective on Fermi from $27.00 to $11.00 and set an "outperform" rating for the company in a report on Tuesday, July 28th. Finally, UBS Group downgraded Fermi from a "buy" rating to a "neutral" rating and set a $6.00 target price on the stock. in a research report on Tuesday, May 5th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $20.67.

More Fermi News

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Fermi signed a 15-year lease with AI cloud provider TensorWave covering an initial 222 megawatts of capacity and approximately $6.5 billion in contracted revenue. The first phase is expected to begin delivery in the second half of 2027, with the partnership potentially expanding beyond 650 MW across three phases. Certain obligations are expected to be guaranteed by a major global AI company. Fermi Announces Binding Lease Agreement with TensorWave
• Positive Sentiment: Fermi also announced a framework agreement with Hillcore Energy Capital for a 2.6-gigawatt power complex at Project Matador. Hillcore will finance, build, own and operate the facility under a build-own-operate-transfer structure, allowing Fermi to expand its power marketed to customers to approximately 4.8 GW over the next 30 months without an upfront capital outlay. The complex is planned to include natural-gas generation, solar power and battery storage. Fermi and Hillcore Energy Capital Announce 2.6 Gigawatt Power Strategic Alliance
• Positive Sentiment: Trading activity was unusually strong, with call-option purchases running about 63% above typical daily volume, suggesting increased speculative bullish interest in FRMI.
• Neutral Sentiment: Reported short interest was zero shares, producing a zero-day short-interest ratio. This offers little evidence of short-covering as a driver and may reflect incomplete or unreliable reporting.
• Negative Sentiment: Analysts and commentators continue to identify substantial risks, including the need to finance and construct a very large planned campus, potential cost overruns, and uncertainty surrounding future nuclear and power infrastructure. The initial TensorWave lease is meaningful but represents only a portion of Fermi’s broader 17-GW ambition, leaving significant execution risk before the projected revenue is realized. Fermi Signs Its First Tenant, But Significant Execution Risks Remain

Fermi Stock Performance

Shares of FRMI stock traded up $1.24 on Tuesday, hitting $7.12. The company's stock had a trading volume of 50,478,351 shares, compared to its average volume of 14,624,114. Fermi has a fifty-two week low of $4.47 and a fifty-two week high of $36.99. The company has a market capitalization of $4.54 billion and a PE ratio of -6.25. The stock's 50 day moving average is $7.14 and its 200-day moving average is $7.24.

Fermi (NASDAQ:FRMI - Get Free Report) last posted its quarterly earnings data on Thursday, May 14th. The company reported ($0.30) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.25). On average, research analysts forecast that Fermi will post -0.33 earnings per share for the current year.

Insider Transactions at Fermi

In other news, insider Mesut Uzman sold 79,509 shares of Fermi stock in a transaction that occurred 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 in the company, valued at approximately $4,230,798.21. The trade was a 10.60% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director James Richard Perry sold 863,637 shares of the business's stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $7.31, for a total value of $6,313,186.47. Following the transaction, the director directly owned 15,827,807 shares in the company, valued at $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. Insiders have sold 1,022,178 shares of company stock valued at $7,313,580 in the last quarter.

Institutional Investors Weigh In On Fermi

A number of large investors have recently added to or reduced their stakes in FRMI. Texas Capital Bank Wealth Management Services Inc acquired a new position in Fermi in the 2nd quarter valued at $13,334,000. BlackRock Inc. bought a new stake in shares of Fermi during the 2nd quarter valued at $38,499,000. Deutsche Bank AG acquired a new stake in shares of Fermi during the 2nd quarter worth $687,000. Perigon Wealth Management LLC bought a new position in shares of Fermi in the second quarter worth $743,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Fermi in the second quarter valued at about $230,000.

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.

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.

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