Parsifal Capital Management LP Takes Position in Fermi Inc. $FRMI

Key Points

• Parsifal Capital Management acquired 1 million Fermi shares during the second quarter, making the position about 1.1% of its portfolio and 0.16% of Fermi’s outstanding stock, according to its SEC filing.
• Analyst sentiment is mixed: recent firms downgraded the stock, but the overall consensus remains “Moderate Buy” with an average price target of $20.67.
• Fermi shares opened at $5.92, well below their 52-week high of $36.99, while insiders sold more than 1 million shares in the past 90 days. The company nevertheless beat quarterly EPS expectations, reporting a loss of $0.04 per share versus the expected $0.06 loss.

Parsifal Capital Management LP bought a new position in shares of Fermi Inc. (NASDAQ:FRMI - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 1,000,000 shares of the company's stock, valued at approximately $9,160,000,000. Fermi comprises about 1.1% of Parsifal Capital Management LP's portfolio, making the stock its 15th largest holding. Parsifal Capital Management LP owned 0.16% of Fermi at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. Renaissance Capital LLC purchased a new stake in Fermi in the 4th quarter valued at $182,000. Pekin Hardy Strauss Inc. acquired a new stake in Fermi during the 4th quarter worth $158,000. WJ Financial Advisors LLC purchased a new position in Fermi during the 4th quarter worth $167,000. SBI Securities Co. Ltd. purchased a new position in Fermi during the 4th quarter worth $41,000. Finally, Empire Life Investments Inc. acquired a new position in Fermi in the fourth quarter valued at $5,611,000.

Analyst Ratings Changes

A number of equities research analysts have recently commented on FRMI shares. Wall Street Zen cut shares of Fermi from a "hold" rating to a "sell" rating in a report on Sunday, May 10th. UBS Group lowered 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. Evercore cut Fermi from an "outperform" rating to an "in-line" rating and set a $11.00 price target on the stock. in a research report on Friday, May 15th. 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 note on Tuesday, June 23rd. Finally, Weiss Ratings cut Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a research report 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 issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $20.67.

Insider Activity

In related 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 directly owned 15,827,807 shares of the company's stock, valued at $115,701,269.17. This represents a 5.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Mesut Uzman sold 79,509 shares of the firm's stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $6.31, for a total transaction of $501,701.79. Following the completion of the sale, the insider owned 670,491 shares of the company's stock, valued at approximately $4,230,798.21. The trade was a 10.60% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 1,022,178 shares of company stock worth $7,313,580.

Fermi Price Performance

NASDAQ:FRMI opened at $5.92 on Monday. The firm's fifty day moving average price is $7.14 and its 200 day moving average price is $7.06. Fermi Inc. has a 1-year low of $4.47 and a 1-year high of $36.99. The firm has a market cap of $3.79 billion and a price-to-earnings ratio of -5.02.

Fermi (NASDAQ:FRMI - Get Free Report) last announced its quarterly earnings data on Thursday, August 13th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.06) by $0.02. During the same quarter last year, the firm earned ($0.02) earnings per share. As a group, analysts expect that Fermi Inc. will post -0.33 earnings per share for the current fiscal year.

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.

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