Ratan Capital Management LP Purchases New Stake in Fermi Inc. $FRMI

Key Points

• Ratan Capital Management acquired 2.16 million Fermi shares worth approximately $19.8 million, making the position about 6.4% of its portfolio and roughly 0.34% of Fermi’s outstanding stock.
• Fermi shares opened at $5.00 after an 8.3% decline, near the company’s 52-week low of $4.47. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $20.67, despite several recent target and rating reductions.
• Insiders sold more than 1 million shares worth approximately $7.3 million over the past three months, while Fermi’s latest quarterly loss of $0.04 per share was narrower than analysts expected.

Ratan Capital Management LP acquired a new stake in shares of Fermi Inc. (NASDAQ:FRMI - Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 2,158,749 shares of the company's stock, valued at approximately $19,774,000. Fermi comprises about 6.4% of Ratan Capital Management LP's portfolio, making the stock its 6th biggest holding. Ratan Capital Management LP owned approximately 0.34% of Fermi at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in the company. Leonteq Securities AG acquired a new stake in shares of Fermi in the 4th quarter valued at about $30,000. PNC Financial Services Group Inc. bought a new position in shares of Fermi during the fourth quarter worth about $36,000. SBI Securities Co. Ltd. bought a new stake in Fermi in the fourth quarter valued at about $41,000. NewEdge Advisors LLC bought a new stake in Fermi in the first quarter valued at about $54,000. Finally, MML Investors Services LLC acquired a new stake in Fermi during the fourth quarter valued at approximately $81,000.

Wall Street Analysts Forecast Growth

FRMI has been the subject of several research reports. Weiss Ratings lowered Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, August 14th. Mizuho dropped their price target on Fermi from $27.00 to $11.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 28th. Evercore lowered 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. Wall Street Zen cut Fermi from a "hold" rating to a "sell" rating in a research note on Sunday, May 10th. Finally, Stifel Nicolaus decreased their price objective on shares of Fermi from $29.00 to $17.00 and set a "buy" rating for the company in a report on Tuesday, June 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, seven have given 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 a consensus price target of $20.67.

Fermi Stock Down 8.3%

FRMI opened at $5.00 on Friday. The company's 50-day moving average price is $6.84 and its 200 day moving average price is $6.98. Fermi Inc. has a fifty-two week low of $4.47 and a fifty-two week high of $36.99. The firm has a market cap of $3.20 billion and a price-to-earnings ratio of -4.24.

Fermi (NASDAQ:FRMI - Get Free Report) last issued its earnings results on Thursday, August 13th. The company reported ($0.04) EPS for the quarter, beating analysts' consensus estimates of ($0.06) by $0.02. During the same period last year, the company earned ($0.02) earnings per share. Research analysts anticipate that Fermi Inc. will post -0.33 earnings per share for the current year.

Insider Activity at Fermi

In related news, insider Mesut Uzman sold 79,509 shares of the company's stock in a transaction 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 $4,230,798.21. This represents a 10.60% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director James Richard Perry sold 863,637 shares of the stock in a transaction 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 completion of the sale, the director directly owned 15,827,807 shares in the company, valued at $115,701,269.17. This represents a 5.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 1,022,178 shares of company stock worth $7,313,580.

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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