Philadelphia Financial Management of San Francisco LLC Makes New $3.89 Million Investment in Fermi Inc. $FRMI

Key Points

• Philadelphia Financial Management acquired 425,000 Fermi shares worth approximately $3.89 million, while other major institutions including BlackRock, Bank of America and M&G also built new positions.
• Fermi shares fell 8.3% to $5.00, near the company’s 52-week low, and insiders sold more than 1 million shares valued at approximately $7.3 million during the last quarter.
• Analyst sentiment remains mixed but averages a “Moderate Buy” rating with a $20.67 price target; Fermi recently reported a quarterly loss of $0.04 per share, better than the $0.06 expected loss.

Philadelphia Financial Management of San Francisco LLC acquired a new stake in shares of Fermi Inc. (NASDAQ:FRMI - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 425,000 shares of the company's stock, valued at approximately $3,893,000. Philadelphia Financial Management of San Francisco LLC owned approximately 0.07% of Fermi as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. BlackRock Inc. acquired a new stake in Fermi during the 2nd quarter valued at $38,499,000. Balyasny Asset Management L.P. acquired a new position in Fermi during the 4th quarter worth approximately $16,549,000. Weiss Asset Management LP grew its position in shares of Fermi by 431.6% during the 1st quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company's stock worth $14,104,000 after purchasing an additional 1,960,764 shares in the last quarter. Bank of America Corp DE acquired a new stake in Fermi during the 2nd quarter valued at approximately $17,859,000. Finally, M&G PLC bought a new stake in shares of Fermi during the 4th quarter worth $14,443,000.

Insider Activity

In other Fermi news, Director James Richard Perry sold 863,637 shares of the stock in a transaction dated 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 $115,701,269.17. This trade represents a 5.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Mesut Uzman sold 79,509 shares of the company's 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 owned 670,491 shares in the company, valued at approximately $4,230,798.21. This represents a 10.60% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,022,178 shares of company stock worth $7,313,580 in the last quarter.

Fermi Trading Down 8.3%

FRMI stock traded down $0.45 during mid-day trading on Friday, reaching $5.00. The company's stock had a trading volume of 18,435,882 shares, compared to its average volume of 14,964,860. The company's 50 day moving average is $6.93 and its two-hundred day moving average is $6.99. The stock has a market cap of $3.20 billion and a PE ratio of -4.24. Fermi Inc. has a fifty-two week low of $4.47 and a fifty-two week high of $36.99.

Fermi (NASDAQ:FRMI - Get Free Report) last posted its quarterly earnings results on Thursday, August 13th. The company reported ($0.04) EPS for the quarter, beating the consensus estimate of ($0.06) by $0.02. During the same period in the previous year, the firm posted ($0.02) earnings per share. On average, analysts forecast that Fermi Inc. will post -0.33 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

FRMI has been the subject of several research analyst reports. Mizuho cut 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. UBS Group cut Fermi from a "buy" rating to a "neutral" rating and set a $6.00 price target on the stock. in a report on Tuesday, May 5th. Wall Street Zen downgraded Fermi from a "hold" rating to a "sell" rating in a report on Sunday, May 10th. Stifel Nicolaus reduced their price objective on Fermi from $29.00 to $17.00 and set a "buy" rating for the company in a research report on Tuesday, June 23rd. Finally, Weiss Ratings cut shares of Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, August 14th. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $20.67.

Fermi 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.