Fermi Inc. $FRMI Stock: Mad River Investors Increases Position

Key Points

• Mad River Investors increased its Fermi stake by 2,828.5% in the third quarter, acquiring 466,700 additional shares for a total of 483,200 shares valued at approximately $2.03 million.
• Several institutional investors also built positions in Fermi, including BlackRock and Value Aligned Research Advisors, while Alyeska Investment Group increased its stake by 82.4%.
• Fermi shares opened at $3.02, well below their 52-week high of $30.02. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $16.86, although recent target cuts and insider selling add caution.

Mad River Investors boosted its position in shares of Fermi Inc. (NASDAQ:FRMI - Free Report) by 2,828.5% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 483,200 shares of the company's stock after purchasing an additional 466,700 shares during the period. Fermi makes up 0.8% of Mad River Investors' portfolio, making the stock its 15th biggest position. Mad River Investors owned 0.08% of Fermi worth $2,034,000 at the end of the most recent quarter.

A number of other large investors have also added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in Fermi in the 2nd quarter worth $38,499,000. Value Aligned Research Advisors LLC acquired a new stake in shares of Fermi during the second quarter valued at about $12,531,000. Philadelphia Financial Management of San Francisco LLC acquired a new stake in shares of Fermi during the second quarter valued at about $3,893,000. Alyeska Investment Group L.P. grew its stake in shares of Fermi by 82.4% during the second quarter. Alyeska Investment Group L.P. now owns 2,886,836 shares of the company's stock valued at $26,443,000 after acquiring an additional 1,303,979 shares in the last quarter. Finally, Sequoia Financial Advisors LLC purchased a new stake in shares of Fermi during the second quarter worth about $1,845,000.

Fermi Stock Performance

Fermi stock opened at $3.02 on Thursday. The company has a 50-day simple moving average of $4.39 and a 200-day simple moving average of $6.58. The firm has a market capitalization of $1.94 billion and a P/E ratio of -2.56. Fermi Inc. has a one year low of $2.44 and a one year high of $30.02.

Fermi (NASDAQ:FRMI - Get Free Report) last released its quarterly earnings data on Thursday, August 13th. The company reported ($0.04) earnings per share for the quarter, topping analysts' consensus estimates of ($0.06) by $0.02. During the same quarter last year, the firm posted ($0.02) earnings per share. As a group, sell-side analysts forecast that Fermi Inc. will post -0.33 earnings per share for the current year.

Analyst Ratings Changes

FRMI has been the topic of several recent analyst reports. Mizuho cut their price target on Fermi from $27.00 to $11.00 and set an "outperform" rating on the stock in a research note on Tuesday, July 28th. Weiss Ratings downgraded Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, August 14th. Finally, Cantor Fitzgerald lowered their target price on shares of Fermi from $12.00 to $8.00 and set an "overweight" rating for the company in a research note on Friday, October 16th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Fermi presently has a consensus rating of "Moderate Buy" and an average target price of $16.86.

Insider Activity

In related news, major shareholder Toby Neugebauer sold 2,750,000 shares of the stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $3.73, for a total value of $10,257,500.00. Following the completion of the transaction, the insider directly owned 91,609,659 shares of the company's stock, valued at $341,704,028.07. This represents a 2.91% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Insiders sold 4,467,949 shares of company stock worth $15,622,757 in the last three months. Insiders own 2.83% of the company's stock.

About Fermi

Fermi, Inc NASDAQ: FRMI is an energy and infrastructure company focused on developing large-scale power and data center facilities for artificial intelligence and other high-performance computing applications. Its business model centers on integrating electricity generation, energy storage and data center infrastructure within a single campus.

The company's principal development is Project Matador, a planned energy and data center campus in the Texas Panhandle. The project is designed to use a mix of power sources, including nuclear energy, natural gas, solar generation and battery storage, with the goal of providing reliable electricity for data center customers.

Fermi's activities are currently concentrated in the United States, particularly Texas.

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