Fervo Energy Sees Unusually Large Options Volume (NASDAQ:FRVO)

Key Points

• Unusual options activity: Traders purchased 9,051 call options in Fervo Energy, 141% above the average daily volume of 3,759 contracts.
• Shares continued to weaken: FRVO fell $1.17 to $13.28, near its 12-month low of $13.10, after reporting a quarterly loss of $0.38 per share versus analysts’ expected loss of $0.09.
• Analyst sentiment remains positive but targets have fallen: The stock carries a “Moderate Buy” consensus rating with an average price target of $40.87, while several firms recently lowered their targets. Multiple institutional investors also initiated positions during the second quarter.

Fervo Energy Company (NASDAQ:FRVO - Get Free Report) was the recipient of some unusual options trading activity on Monday. Stock traders purchased 9,051 call options on the stock. This represents an increase of 141% compared to the average daily volume of 3,759 call options.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. Corient Private Wealth LP purchased a new position in shares of Fervo Energy in the second quarter worth $229,000. Engineers Gate Manager LP purchased a new stake in shares of Fervo Energy during the second quarter valued at $272,000. AXQ Capital LP purchased a new stake in shares of Fervo Energy during the second quarter valued at $499,000. NewEdge Advisors LLC acquired a new position in shares of Fervo Energy in the 2nd quarter valued at $1,245,000. Finally, Ranger Investment Management L.P. acquired a new position in shares of Fervo Energy in the 2nd quarter valued at $1,455,000.

Fervo Energy Stock Performance

Shares of NASDAQ FRVO traded down $1.17 during midday trading on Monday, reaching $13.28. The stock had a trading volume of 5,492,506 shares, compared to its average volume of 4,707,766. The company has a debt-to-equity ratio of 0.08, a current ratio of 8.62 and a quick ratio of 8.62. The business's 50-day simple moving average is $18.04. Fervo Energy has a 12-month low of $13.10 and a 12-month high of $42.65.

Fervo Energy (NASDAQ:FRVO - Get Free Report) last issued its quarterly earnings data on Wednesday, August 12th. The company reported ($0.38) EPS for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.29). The business had revenue of $0.11 million for the quarter. Equities analysts anticipate that Fervo Energy will post -0.54 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several equities research analysts have commented on FRVO shares. Wall Street Zen raised Fervo Energy from a "strong sell" rating to a "sell" rating in a report on Monday, July 20th. Barclays lifted their target price on shares of Fervo Energy from $47.00 to $48.00 and gave the stock an "overweight" rating in a report on Wednesday, June 24th. Bank of America reduced their price target on shares of Fervo Energy from $36.00 to $30.00 and set a "buy" rating for the company in a research report on Friday, September 25th. Robert W. Baird reduced their target price on Fervo Energy from $50.00 to $35.00 and set an "outperform" rating for the company in a report on Thursday, August 13th. Finally, Northland Securities began coverage on Fervo Energy in a research report on Thursday, September 10th. They set an "outperform" rating and a $27.00 price objective on the stock. Two research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Fervo Energy has a consensus rating of "Moderate Buy" and an average target price of $40.87.

About Fervo Energy

Fervo Energy is a geothermal energy company focused on developing enhanced geothermal systems (EGS), which use horizontal drilling and hydraulic stimulation techniques to access heat in underground rock and produce electricity. Its approach is designed to expand geothermal generation beyond locations with naturally occurring conventional geothermal resources.

The company develops geothermal projects, including Project Red in northern Nevada and the larger Cape Station project in southwestern Utah.

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