Fermi (NASDAQ:FRMI) Hits New 12-Month Low - Time to Sell?

Key Points

• Fermi shares fell 5.6% to a new 52-week low of $4.43, closing near $4.55, with market capitalization around $2.91 billion and a negative P/E ratio.
• Analysts remain broadly optimistic despite lowering price targets: Fermi has a “Moderate Buy” consensus rating and an average target of $20.67, while the company slightly beat quarterly EPS expectations but is forecast to remain unprofitable this fiscal year.
• Director James Perry sold 863,637 shares worth about $6.3 million, while institutional investors including BlackRock and Alyeska Investment Group established or increased positions during the second quarter.

Fermi Inc. (NASDAQ:FRMI - Get Free Report)'s share price hit a new 52-week low during trading on Friday. The company traded as low as $4.43 and last traded at $4.55, with a volume of 19341615 shares trading hands. The stock had previously closed at $4.82.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on FRMI shares. Mizuho reduced their price objective on Fermi from $27.00 to $11.00 and set an "outperform" rating on the stock in a research note on Tuesday, July 28th. Stifel Nicolaus cut their target price on shares of Fermi from $29.00 to $17.00 and set a "buy" rating for the company in a report on Tuesday, June 23rd. Finally, Weiss Ratings cut shares of Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, August 14th. Two investment analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $20.67.

Fermi Stock Down 5.6%

The company has a 50 day simple moving average of $5.77 and a two-hundred day simple moving average of $6.35. The company has a market capitalization of $2.91 billion and a P/E ratio of -3.86.

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

Insiders Place Their Bets

In related news, Director James Perry sold 863,637 shares of the firm's stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $7.31, for a total value of $6,313,186.47. Following the completion of the sale, the director directly owned 15,827,807 shares in the company, valued at $115,701,269.17. This trade represents a 5.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. BlackRock Inc. bought a new position in shares of Fermi during the second quarter valued at approximately $38,499,000. Value Aligned Research Advisors LLC bought a new position in Fermi in the second quarter worth approximately $12,531,000. Philadelphia Financial Management of San Francisco LLC purchased a new stake in Fermi during the second quarter worth $3,893,000. Alyeska Investment Group L.P. lifted its holdings in Fermi by 82.4% during the second quarter. Alyeska Investment Group L.P. now owns 2,886,836 shares of the company's stock worth $26,443,000 after buying an additional 1,303,979 shares during the period. Finally, Sequoia Financial Advisors LLC bought a new stake in Fermi during the 2nd quarter valued at $1,845,000.

About Fermi

Fermi Inc is an energy and digital infrastructure company developing large-scale power-generation and data-center facilities to support energy-intensive computing, including artificial intelligence applications. Its business focuses on integrating electricity generation, transmission infrastructure and data-center capacity within dedicated campuses.

The company's primary development effort is the Fermi America project near Amarillo, Texas, also referred to as Project Matador. The planned campus is intended to use a diversified energy portfolio that may include natural gas, nuclear power, solar generation and battery storage, with the goal of providing reliable electricity for data centers and other high-demand technology users.

Fermi's operations are currently centered on the United States, particularly Texas.

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