Stock Traders Buy High Volume of Put Options on Fervo Energy (NASDAQ:FRVO)

Key Points

• Put-option activity surged: Investors bought 5,110 put options on Fervo Energy, 208% above the average volume of 1,658, signaling heightened bearish or hedging interest.
• Shares fell sharply: FRVO dropped $0.85 to $15.60, near its one-year low of $15.31 and well below its 50-day moving average of $25.06. The company also missed quarterly EPS estimates, reporting a $0.38 loss versus the expected $0.09 loss.
• Analyst sentiment remains mixed but generally positive: The stock has a “Moderate Buy” consensus rating and a $44 average price target, despite recent sell coverage and target-price reductions. Several institutional investors also established new positions during the second quarter.

Fervo Energy Company (NASDAQ:FRVO - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Investors bought 5,110 put options on the company. This is an increase of 208% compared to the average volume of 1,658 put options.

Institutional Investors Weigh In On Fervo Energy

A number of large investors have recently bought and sold shares of the business. AXQ Capital LP bought a new stake in shares of Fervo Energy during the second quarter worth $499,000. Ranger Investment Management L.P. bought a new stake in Fervo Energy during the 2nd quarter worth about $1,455,000. Readystate Asset Management LP acquired a new position in Fervo Energy during the 2nd quarter valued at about $4,419,000. Resolute Advisors LLC acquired a new position in Fervo Energy during the 2nd quarter valued at about $5,285,000. Finally, Value Aligned Research Advisors LLC acquired a new position in Fervo Energy during the 2nd quarter valued at about $63,155,000.

Fervo Energy Stock Performance

Shares of FRVO traded down $0.85 during trading hours on Wednesday, reaching $15.60. 1,154,484 shares of the company traded hands, compared to its average volume of 3,420,767. The firm has a fifty day moving average of $25.06. Fervo Energy has a 1-year low of $15.31 and a 1-year high of $42.65.

Fervo Energy (NASDAQ:FRVO - Get Free Report) last released its quarterly earnings data on Wednesday, August 12th. The company reported ($0.38) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.29). The firm had revenue of $0.11 million during the quarter. As a group, equities analysts forecast that Fervo Energy will post -0.42 earnings per share for the current year.

Analyst Ratings Changes

Several brokerages have recently issued reports on FRVO. William Blair assumed coverage on Fervo Energy in a report on Monday, June 8th. They set an "outperform" rating and a $43.00 price target for the company. Piper Sandler reaffirmed an "overweight" rating on shares of Fervo Energy in a research report on Tuesday, June 23rd. Wall Street Zen upgraded shares of Fervo Energy from a "strong sell" rating to a "sell" rating in a research note on Monday, July 20th. Weiss Ratings initiated coverage on shares of Fervo Energy in a research report on Tuesday, August 18th. They issued a "sell (d)" rating for the company. Finally, Bank of America raised shares of Fervo Energy from a "neutral" rating to a "buy" rating and decreased their target price for the stock from $40.00 to $36.00 in a research report on Friday, July 17th. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $44.00.

About Fervo Energy

Fervo Energy Company is a geothermal energy developer, builds, owns and operates geothermal power facilities. Fervo Energy Company is based in Houston, Texas.

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