Fermi (NASDAQ:FRMI) Reaches New 52-Week Low - Should You Sell?

Key Points

• Fermi shares fell 4.4% to a new 52-week low of $2.97, trading below both their 50-day ($4.90) and 200-day ($5.93) moving averages.
• Analysts have sharply reduced their price targets, but the stock retains a “Moderate Buy” consensus rating with an average target of $20.67; Fermi also exceeded quarterly EPS expectations, reporting a $0.04 loss versus the estimated $0.06 loss.
• Major shareholder Toby R. Neugebauer sold 1.3 million shares for about $4.1 million, while institutional investors including BlackRock and BlueCrest initiated sizable positions during the second quarter.

Fermi Inc. (NASDAQ:FRMI - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Tuesday. The stock traded as low as $2.97 and last traded at $3.02, with a volume of 21,869,767 shares. The stock had previously closed at $3.16.

Analyst Ratings Changes

FRMI has been the subject of a number of analyst reports. Stifel Nicolaus cut their price objective on shares of Fermi from $29.00 to $17.00 and set a "buy" rating for the company in a research report on Tuesday, June 23rd. Cantor Fitzgerald decreased their target price on shares of Fermi from $12.00 to $8.00 and set an "overweight" rating on the stock in a research report on Friday. Weiss Ratings cut shares of Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, August 14th. Finally, Mizuho lowered their target price on shares of Fermi from $27.00 to $11.00 and set an "outperform" rating for the company in a research note on Tuesday, July 28th. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $20.67.

Fermi Stock Down 4.4%

The business has a 50 day simple moving average of $4.90 and a 200-day simple moving average of $5.93.

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

Insider Transactions at Fermi

In related news, major shareholder Toby R. Neugebauer sold 1,297,200 shares of the business's stock in a transaction that occurred on Wednesday, October 14th. The shares were sold at an average price of $3.15, for a total value of $4,086,180.00. Following the completion of the sale, the insider directly owned 43,359,176 shares in the company, valued at approximately $136,581,404.40. The trade was a 2.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 2.83% of the company's stock.

Hedge Funds Weigh In On Fermi

Large investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new stake in Fermi during the second quarter worth about $38,499,000. BlueCrest Capital Management Ltd purchased a new position in shares of Fermi in the 2nd quarter worth about $33,276,000. Alyeska Investment Group L.P. raised its holdings in shares of Fermi by 82.4% in the 2nd quarter. Alyeska Investment Group L.P. now owns 2,886,836 shares of the company's stock worth $26,443,000 after purchasing an additional 1,303,979 shares during the period. Ratan Capital Management LP purchased a new position in shares of Fermi in the 2nd quarter worth about $19,774,000. Finally, Bank of America Corp DE acquired a new position in shares of Fermi in the 2nd quarter valued at about $17,859,000.

About Fermi

Fermi Inc is an energy and infrastructure company focused on developing large-scale power generation and data center facilities. The company is pursuing an integrated model designed to provide reliable electricity for high-demand computing applications, including artificial intelligence and cloud infrastructure.

Its development activities center on the planned Fermi Nuclear Campus in the Texas Panhandle. The project is expected to combine nuclear power with other generation and energy technologies, potentially including natural gas, renewable energy and battery storage, alongside data center infrastructure.

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