Fermi (NASDAQ:FRMI) Shares Down 7.3% Following Insider Selling

Key Points

• Fermi shares fell 7.3% to $2.65 after major shareholder Toby R. Neugebauer sold 420,749 shares for approximately $1.28 million. Trading volume rose 23% above the average, while Neugebauer retained more than 91.1 million shares.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and a $20.67 price target, although Mizuho and Cantor Fitzgerald recently lowered their targets to $11 and $8, respectively.
• Fermi reported a quarterly loss of $0.04 per share, beating estimates of a $0.06 loss, and institutional investors including BlackRock and BlueCrest Capital recently established sizable positions.

Shares of Fermi Inc. (NASDAQ:FRMI - Get Free Report) fell 7.3% on Thursday after an insider sold shares in the company. The stock traded as low as $2.59 and last traded at $2.65. 19,501,481 shares were traded during trading, an increase of 23% from the average session volume of 15,877,846 shares. The stock had previously closed at $2.86.

Specifically, major shareholder Toby R. Neugebauer sold 420,749 shares of the company's stock in a transaction dated Tuesday, October 20th. The shares were sold at an average price of $3.04, for a total value of $1,279,076.96. Following the completion of the sale, the insider owned 91,188,910 shares of the company's stock, valued at $277,214,286.40. This represents a 0.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website.

Wall Street Analysts Forecast Growth

FRMI has been the subject of a number of research analyst reports. Mizuho cut their price target on shares of Fermi from $27.00 to $11.00 and set an "outperform" rating for the company in a report on Tuesday, July 28th. Cantor Fitzgerald decreased their target price on Fermi from $12.00 to $8.00 and set an "overweight" rating for the company in a research report on Friday, October 16th. Finally, Weiss Ratings downgraded Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday, August 14th. Two investment analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Fermi has a consensus rating of "Moderate Buy" and a consensus price target of $20.67.

Fermi Trading Down 7.3%

The firm's fifty day moving average price is $4.64 and its 200 day moving average price is $5.88. The firm has a market capitalization of $1.70 billion and a PE ratio of -2.25.

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

Hedge Funds Weigh In On Fermi

A number of hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new stake in Fermi in the second quarter worth approximately $38,499,000. BlueCrest Capital Management Ltd bought a new position in shares of Fermi during the 2nd quarter valued at $33,276,000. Alyeska Investment Group L.P. raised 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 in the last quarter. Weiss Asset Management LP lifted its stake in shares of Fermi by 431.6% in the 1st quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company's stock valued at $14,104,000 after purchasing an additional 1,960,764 shares during the last quarter. Finally, Ratan Capital Management LP acquired a new stake in shares of Fermi in the 2nd quarter valued at $19,774,000.

About Fermi

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.