Fermi (NASDAQ:FRMI) Sees Unusually-High Trading Volume - Still a Buy?

Key Points

• Trading volume jumped 51% to 24.8 million shares, while Fermi traded at $1.959, up from its previous close of $1.81.
• Analysts have cut price targets, including Mizuho to $11 and Cantor Fitzgerald to $8, though the consensus rating remains Moderate Buy with an average target of $13.83.
• Fermi reported a quarterly loss of $0.22 per share, missing the $0.07-per-share loss analysts expected; insiders have also sold about 12.1 million shares over the past three months.

Shares of Fermi Inc. (NASDAQ:FRMI - Get Free Report) saw strong trading volume on Thursday. 24,831,088 shares were traded during mid-day trading, an increase of 51% from the average daily volume of 16,426,385 shares. The stock last traded at $1.9590 and had previously closed at $1.81.

Analysts Set New Price Targets

Several equities research analysts have recently commented on FRMI shares. Mizuho dropped their target price on Fermi from $27.00 to $11.00 and set an "outperform" rating for the company in a research report on Tuesday, July 28th. Cantor Fitzgerald decreased their price target on Fermi from $12.00 to $8.00 and set an "overweight" rating on the stock in a report on Friday, October 16th. Finally, Weiss Ratings cut Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday, August 14th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $13.83.

Fermi Price Performance

The company's 50-day moving average price is $3.68 and its 200-day moving average price is $6.20. The company has a market cap of $1.39 billion and a P/E ratio of -1.84.

Fermi (NASDAQ:FRMI - Get Free Report) last announced its earnings results on Thursday, November 12th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.15). On average, equities research analysts predict that Fermi Inc. will post -0.33 EPS for the current year.

Insider Transactions at Fermi

In other news, major shareholder Toby Neugebauer sold 5,000,000 shares of the firm's stock in a transaction that occurred on Thursday, November 5th. The stock was sold at an average price of $1.52, for a total value of $7,600,000.00. Following the completion of the sale, the insider directly owned 84,813,010 shares of the company's stock, valued at $128,915,775.20. This trade represents a 5.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. In the last three months, insiders have sold 12,125,749 shares of company stock valued at $28,639,969. Company insiders own 2.83% of the company's stock.

Institutional Investors Weigh In On Fermi

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

About Fermi

Fermi Inc. develops energy and data-center infrastructure intended to support artificial intelligence and other high-performance computing needs. Its business centers on planning and building integrated campuses that pair large-scale power resources with data-center facilities. The company's flagship development is Project Matador, a planned campus in the Texas Panhandle near Amarillo. The project is designed to combine data centers with a mix of power-generation and energy-storage resources; it remains a development project rather than an established portfolio of operating facilities.

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