The Manufacturers Life Insurance Company Sells 374,995 Shares of Fermi Inc. $FRMI

Key Points

• The Manufacturers Life Insurance Company cut its Fermi stake by 81.7% in the first quarter, selling 374,995 shares and retaining 83,805 shares valued at approximately $489,000.
• Fermi shares opened at $6.40, down 3%, and remain well below their 52-week high of $36.99. The company reported a quarterly loss of $0.04 per share, better than estimates, but analysts expect a full-year loss of about $0.33 per share.
• Fermi has secured a potential 650-megawatt agreement with TensorWave and is advancing plans for its Texas power campus, but continued losses, insider selling, execution risks and mixed analyst revisions remain concerns.

The Manufacturers Life Insurance Company trimmed its position in shares of Fermi Inc. (NASDAQ:FRMI - Free Report) by 81.7% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 83,805 shares of the company's stock after selling 374,995 shares during the period. The Manufacturers Life Insurance Company's holdings in Fermi were worth $489,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Leonteq Securities AG purchased a new position in shares of Fermi in the fourth quarter valued at $30,000. PNC Financial Services Group Inc. purchased a new stake in Fermi during the fourth quarter valued at $36,000. SBI Securities Co. Ltd. purchased a new stake in Fermi during the fourth quarter valued at $41,000. MML Investors Services LLC bought a new position in Fermi during the fourth quarter valued at $81,000. Finally, Public Employees Retirement System of Ohio bought a new position in Fermi during the fourth quarter valued at $86,000.

Fermi Stock Down 3.0%

Shares of FRMI opened at $6.40 on Friday. The business has a fifty day moving average of $7.20 and a 200 day moving average of $7.19. The company has a market cap of $4.08 billion and a PE ratio of -5.61. Fermi Inc. has a 52-week low of $4.47 and a 52-week high of $36.99.

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

Key Headlines Impacting Fermi

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: First anchor customer secured: Fermi signed a lease and power agreement with AI-computing provider TensorWave for up to 650 megawatts. The deal gives Fermi a customer for its large Texas power project and improves the credibility of its AI-data-center strategy. Fermi outlines 640 MW by Q4 2027 as it signs up to 650 MW with TensorWave
• Positive Sentiment: Project moves toward construction: Hillcore will build a 2.6-gigawatt gas-fired power complex at Fermi’s Matador site in Amarillo, Texas, supporting a potential 11-gigawatt campus. Fermi said it expects to have 640 megawatts operational by the fourth quarter of 2027, providing a clearer development timetable. Hillcore construction announcement
• Positive Sentiment: 90-day objectives completed: Fermi announced a new CEO, a strategic alliance, premier contractors, delivery of three F-Series turbines and more than $431 million in capital raised. These milestones strengthen liquidity and demonstrate progress after a period of leadership instability. Fermi second-quarter results and objectives
• Neutral Sentiment: CEO transition: Fermi appointed a new chief executive more than three months after removing co-founder Toby Neugebauer. The change could improve execution and governance, although investors will likely watch for evidence of stability and delivery under the new leadership. Fermi names a new CEO
• Negative Sentiment: Losses continue: Fermi reported a second-quarter loss of $0.04 per share, better than the $0.06 consensus loss but wider than the year-earlier result. The company remains unprofitable, with analysts expecting approximately negative $0.33 EPS for the full year.
• Negative Sentiment: Execution and funding risks remain: Project Matador requires substantial construction, power-generation and customer ramp-up execution. Recent legal and C-suite turmoil, along with the stock’s sharp retreat from its 12-month high, may keep investors cautious despite the new customer and construction announcements.

Insider Transactions at Fermi

In related news, insider Mesut Uzman sold 79,509 shares of the stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $6.31, for a total value of $501,701.79. Following the sale, the insider directly owned 670,491 shares of the company's stock, valued at $4,230,798.21. This represents a 10.60% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director James Richard Perry sold 863,637 shares of the firm's stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $7.31, for a total transaction of $6,313,186.47. Following the completion of the sale, the director directly owned 15,827,807 shares of the company's stock, valued at approximately $115,701,269.17. The trade was a 5.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 1,022,178 shares of company stock valued at $7,313,580.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Stifel Nicolaus reduced their target price on shares of Fermi from $29.00 to $17.00 and set a "buy" rating on the stock in a report on Tuesday, June 23rd. Evercore downgraded shares of Fermi from an "outperform" rating to an "in-line" rating and set a $11.00 price target for the company. in a report on Friday, May 15th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Fermi in a research report on Thursday, July 2nd. Mizuho dropped their price target on Fermi from $27.00 to $11.00 and set an "outperform" rating for the company in a research report on Tuesday, July 28th. Finally, UBS Group cut 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. Two investment 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. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus 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.

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