Fermi (NASDAQ:FRMI) Shares Down 2.6% - Time to Sell?

Key Points

• Fermi shares fell 2.6% to $2.94 in Tuesday trading, below the company’s 50-day and 200-day moving averages, with a market capitalization of approximately $1.89 billion.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $20.67, although several firms recently reduced their targets. Fermi’s latest quarterly loss of $0.04 per share was narrower than the expected $0.06 loss.
• Major shareholder Toby R. Neugebauer sold 1.3 million shares for about $4.1 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 stock price dropped 2.6% on Tuesday. The stock traded as low as $2.87 and last traded at $2.94. Approximately 12,472,975 shares were traded during mid-day trading, a decline of 21% from the average session volume of 15,844,053 shares. The stock had previously closed at $3.02.

Analyst Ratings Changes

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

Fermi Stock Performance

The company has a fifty day moving average price of $4.90 and a two-hundred day moving average price of $5.93. The company has a market cap of $1.89 billion and a P/E ratio of -2.49.

Fermi (NASDAQ:FRMI - Get Free Report) last issued its earnings results on Thursday, August 13th. The company reported ($0.04) EPS for the quarter, topping the consensus estimate of ($0.06) by $0.02. During the same period in the prior year, the company earned ($0.02) EPS. Research analysts anticipate that Fermi Inc. will post -0.33 EPS for the current year.

Insider Transactions at Fermi

In other Fermi news, major shareholder Toby R. Neugebauer sold 1,297,200 shares of the firm's stock in a transaction on Wednesday, October 14th. The stock was sold at an average price of $3.15, for a total transaction of $4,086,180.00. Following the transaction, the insider owned 43,359,176 shares in the company, valued at $136,581,404.40. This trade represents a 2.90% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 2.83% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in shares of Fermi during the 2nd quarter worth $38,499,000. Value Aligned Research Advisors LLC acquired a new stake in shares of Fermi in the 2nd quarter valued at approximately $12,531,000. Philadelphia Financial Management of San Francisco LLC acquired a new stake in shares of Fermi in the 2nd quarter valued at approximately $3,893,000. Alyeska Investment Group L.P. grew its holdings 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 purchasing an additional 1,303,979 shares during the last quarter. Finally, Sequoia Financial Advisors LLC acquired a new position in Fermi during the 2nd quarter worth approximately $1,845,000.

Fermi Company Profile

Fermi, Inc NASDAQ: FRMI is an energy and infrastructure company focused on developing large-scale power and data center facilities for artificial intelligence and other high-performance computing applications. Its business model centers on integrating electricity generation, energy storage and data center infrastructure within a single campus.

The company's principal development is Project Matador, a planned energy and data center campus in the Texas Panhandle. The project is designed to use a mix of power sources, including nuclear energy, natural gas, solar generation and battery storage, with the goal of providing reliable electricity for data center customers.

Fermi's activities are currently concentrated in the United States, particularly Texas.

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