Fermi (NASDAQ:FRMI) Major Shareholder Toby Neugebauer Sells 2,563,800 Shares of Stock

Key Points

• Major shareholder Toby Neugebauer sold 2,563,800 Fermi shares at an average $2.04 each, worth about $5.23 million. After the sale, he held approximately 42.08 million shares.
• Fermi shares fell 15.9% during Thursday trading to $1.53, near the stock’s 12-month low of $1.44.
• Analysts have reduced price targets, including Cantor Fitzgerald’s cut from $12 to $8 and Mizuho’s from $27 to $11; MarketBeat nevertheless reports a consensus “Moderate Buy” rating.

Fermi Inc. (NASDAQ:FRMI - Get Free Report) major shareholder Toby Neugebauer sold 2,563,800 shares of Fermi stock in a transaction dated Tuesday, November 3rd. The stock was sold at an average price of $2.04, for a total value of $5,230,152.00. Following the completion of the sale, the insider directly owned 42,077,276 shares of the company's stock, valued at approximately $85,837,643.04. This trade represents a 5.74% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Major shareholders that own at least 10% of a company's stock are required to disclose their sales and purchases with the SEC.

Fermi Trading Down 15.9%

Fermi stock traded down $0.29 during midday trading on Thursday, reaching $1.53. The stock had a trading volume of 41,416,841 shares, compared to its average volume of 25,128,548. Fermi Inc. has a 12 month low of $1.44 and a 12 month high of $27.07. The firm's 50-day moving average price is $3.95 and its 200 day moving average price is $6.35.

Fermi (NASDAQ:FRMI - Get Free Report) last issued its earnings results 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 in the prior year, the business posted ($0.02) EPS. As a group, research analysts anticipate that Fermi Inc. will post -0.33 EPS for the current year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of FRMI. BlackRock Inc. bought a new position in shares of Fermi in the second quarter worth $38,499,000. BlueCrest Capital Management Ltd purchased a new stake in shares of Fermi in the second quarter worth $33,276,000. Ratan Capital Management LP purchased a new stake in shares of Fermi in the second quarter worth $19,774,000. Weiss Asset Management LP boosted its stake in Fermi by 431.6% during the first quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company's stock valued at $14,104,000 after buying an additional 1,960,764 shares during the period. Finally, Bank of America Corp DE bought a new stake in Fermi during the second quarter valued at $17,859,000.

Key Headlines Impacting Fermi

Here are the key news stories impacting Fermi this week:

• Neutral Sentiment: Reports clarified that an emergency alert involving the Fermi II nuclear plant in Newport was sent accidentally during a drill; officials said there was no emergency. This concerns the nuclear facility, not Fermi Inc., so it appears to have little direct bearing on FRMI. Read More. · Read More.
• Neutral Sentiment: Fermi held its annual shareholder meeting and board vote on October 30. The available report does not provide details suggesting a material change in the company’s outlook. Read More.
• Negative Sentiment: Major shareholder Toby Neugebauer reported selling 5 million shares on Nov. 5, 94,000 shares on Nov. 4, and 2.56 million shares on Nov. 3—about 7.66 million shares in total. Such substantial insider selling may weigh on sentiment, although the filings do not establish the reason for the sales. Read More.
• Negative Sentiment: Coverage says a data-center lease deadline passed, raising investor questions about the lease and its implications for Fermi’s cash-flow outlook. One report linked the missed deadline to a sharp share decline; the supplied articles do not specify definitive lease terms or a resolution. Read More. · Read More.

Analyst Ratings Changes

Several research analysts recently commented on the stock. Cantor Fitzgerald cut their price objective on shares of Fermi from $12.00 to $8.00 and set an "overweight" rating for the company in a report on Friday, October 16th. Weiss Ratings cut shares of Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday, August 14th. Finally, Mizuho dropped their target price on Fermi from $27.00 to $11.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $16.86.

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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