Texas Capital Bank Wealth Management Services Inc Invests $13.33 Million in Fermi Inc. $FRMI

Key Points

• Texas Capital Bank Wealth Management Services acquired 1.46 million Fermi shares worth approximately $13.33 million, representing 0.23% of the company and 0.7% of its portfolio. Several other institutional investors, including BlackRock and Renaissance Technologies, also increased or initiated positions.
• Fermi insiders sold more than 1.02 million shares valued at approximately $7.31 million over the past three months, including a director’s sale of 863,637 shares.
• Fermi shares opened at $6.14, near the lower end of their 12-month range, while analysts maintained a mixed outlook. The stock has a consensus “Moderate Buy” rating and a $20.67 price target, despite several recent target cuts and downgrades.

Texas Capital Bank Wealth Management Services Inc purchased a new position in Fermi Inc. (NASDAQ:FRMI - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 1,455,677 shares of the company's stock, valued at approximately $13,334,000. Fermi comprises 0.7% of Texas Capital Bank Wealth Management Services Inc's investment portfolio, making the stock its 21st largest position. Texas Capital Bank Wealth Management Services Inc owned 0.23% of Fermi at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in Fermi in the second quarter worth $38,499,000. Weiss Asset Management LP boosted its stake in Fermi by 431.6% during the 1st quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company's stock valued at $14,104,000 after purchasing an additional 1,960,764 shares during the period. Balyasny Asset Management L.P. acquired a new position in shares of Fermi during the fourth quarter worth approximately $16,549,000. M&G PLC bought a new position in shares of Fermi in the fourth quarter worth $14,443,000. Finally, Renaissance Technologies LLC grew its position in Fermi by 311.3% in the 1st quarter. Renaissance Technologies LLC now owns 1,403,700 shares of the company's stock valued at $8,198,000 after buying an additional 1,062,400 shares in the last quarter.

Insider Activity

In related news, insider Mesut Uzman sold 79,509 shares of the stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $6.31, for a total value of $501,701.79. Following the completion of the sale, the insider directly owned 670,491 shares of the company's stock, valued at approximately $4,230,798.21. This represents a 10.60% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director James Richard Perry sold 863,637 shares of Fermi stock in a transaction dated Tuesday, June 30th. The shares were 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 approximately $115,701,269.17. This trade represents a 5.17% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 1,022,178 shares of company stock valued at $7,313,580.

Wall Street Analyst Weigh In

FRMI has been the topic of several recent analyst reports. Stifel Nicolaus dropped their target price on Fermi from $29.00 to $17.00 and set a "buy" rating on the stock in a report on Tuesday, June 23rd. 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. UBS Group downgraded Fermi from a "buy" rating to a "neutral" rating and set a $6.00 price objective on the stock. in a research note on Tuesday, May 5th. 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. Finally, Wall Street Zen cut Fermi from a "hold" rating to a "sell" rating in a research note on Sunday, May 10th. Two analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Fermi has an average rating of "Moderate Buy" and a consensus price target of $20.67.

Fermi Stock Down 4.1%

Shares of NASDAQ:FRMI opened at $6.14 on Tuesday. The company's fifty day moving average is $7.21 and its two-hundred day moving average is $7.15. The company has a market cap of $3.91 billion and a P/E ratio of -5.39. Fermi Inc. has a 12-month low of $4.47 and a 12-month high of $36.99.

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

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.

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