Fermi (NASDAQ:FRMI) Shares Gap Up - Still a Buy?

Key Points

• Fermi shares opened higher, rising from a $4.77 close to $5.05 before trading at $4.9020, while remaining below their 50-day and 200-day moving averages.
• Analyst sentiment remains favorable overall, with a consensus “Moderate Buy” rating and an average price target of $20.67, despite Mizuho and Stifel cutting their targets.
• Fermi exceeded quarterly EPS expectations, reporting a loss of $0.04 per share versus the expected $0.06 loss; however, a director sold 863,637 shares, and analysts project a full-year loss of $0.33 per share.

Fermi Inc. (NASDAQ:FRMI - Get Free Report) gapped up prior to trading on Thursday . The stock had previously closed at $4.77, but opened at $5.05. Fermi shares last traded at $4.9020, with a volume of 1,062,907 shares changing hands.

Wall Street Analyst Weigh In

A number of research analysts have commented on the company. 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. Weiss Ratings downgraded Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday, August 14th. Finally, Stifel Nicolaus reduced their price target on Fermi from $29.00 to $17.00 and set a "buy" rating on the stock in a research report on Tuesday, June 23rd. Two investment analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $20.67.

Fermi Stock Performance

The business's fifty day simple moving average is $5.96 and its 200 day simple moving average is $6.53. The stock has a market cap of $3.15 billion and a price-to-earnings ratio of -4.17.

Fermi (NASDAQ:FRMI - Get Free Report) last announced its earnings results on Thursday, August 13th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.06) by $0.02. During the same period in the previous year, the business earned ($0.02) EPS. As a group, analysts forecast that Fermi Inc. will post -0.33 EPS for the current fiscal year.

Insider Activity

In other news, Director James Perry sold 863,637 shares of the stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $7.31, for a total transaction of $6,313,186.47. Following the completion of the transaction, the director directly owned 15,827,807 shares in the company, valued at approximately $115,701,269.17. This represents a 5.17% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. NewEdge Advisors LLC raised its position in shares of Fermi by 22.5% during the 2nd quarter. NewEdge Advisors LLC now owns 11,431 shares of the company's stock valued at $105,000 after acquiring an additional 2,101 shares in the last quarter. Leonteq Securities AG acquired a new position in Fermi in the fourth quarter worth $30,000. Integrated Wealth Concepts LLC acquired a new position in Fermi in the second quarter worth $41,000. Financial Management Professionals Inc. bought a new stake in Fermi during the second quarter valued at $104,000. Finally, Byrne Asset Management LLC acquired a new stake in shares of Fermi during the second quarter worth $109,000.

Fermi Company Profile

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.

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.