Fermi (NASDAQ:FRMI) Shares Up 15.3% - Here's What Happened

Key Points

• Fermi shares surged 15.3% to $3.02, with trading volume about 33% above average. The company’s market capitalization was approximately $1.94 billion.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $16.86, despite recent target-price reductions by Mizuho and Cantor Fitzgerald.
• Insiders sold 4.47 million shares worth $15.6 million over the past quarter, including a 2.75 million-share sale by major shareholder Toby Neugebauer. Fermi recently exceeded quarterly EPS expectations, reporting a loss of $0.04 per share versus the expected $0.06 loss.

Fermi Inc. (NASDAQ:FRMI - Get Free Report) shares shot up 15.3% on Wednesday. The company traded as high as $3.03 and last traded at $3.02. 21,089,670 shares traded hands during mid-day trading, an increase of 33% from the average daily volume of 15,909,093 shares. The stock had previously closed at $2.62.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on FRMI shares. Weiss Ratings cut Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, August 14th. Mizuho reduced their target price on Fermi from $27.00 to $11.00 and set an "outperform" rating on the stock in a report on Tuesday, July 28th. Finally, Cantor Fitzgerald lowered their price objective on shares of Fermi from $12.00 to $8.00 and set an "overweight" rating for the company in a research report on Friday, October 16th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $16.86.

Fermi Stock Up 15.3%

The company has a 50 day moving average price of $4.44 and a 200-day moving average price of $6.61. The company has a market cap of $1.94 billion and a P/E ratio of -2.56.

Fermi (NASDAQ:FRMI - Get Free Report) last announced 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 firm posted ($0.02) EPS. On average, research analysts expect that Fermi Inc. will post -0.33 earnings per share for the current fiscal year.

Insider Activity

In related news, major shareholder Toby Neugebauer sold 2,750,000 shares of Fermi stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $3.73, for a total value of $10,257,500.00. Following the transaction, the insider directly owned 91,609,659 shares in the company, valued at $341,704,028.07. The trade was a 2.91% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Insiders sold a total of 4,467,949 shares of company stock valued at $15,622,757 over the last quarter. 2.83% of the stock is currently owned by corporate insiders.

Institutional Trading of Fermi

A number of hedge funds have recently modified their holdings of the business. BlackRock Inc. acquired a new position in shares of Fermi during the second quarter valued at about $38,499,000. Value Aligned Research Advisors LLC acquired a new position in Fermi in the 2nd quarter valued at approximately $12,531,000. Philadelphia Financial Management of San Francisco LLC bought a new stake in shares of Fermi in the 2nd quarter worth 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 worth $26,443,000 after purchasing an additional 1,303,979 shares in the last quarter. Finally, Sequoia Financial Advisors LLC bought a new stake in shares of Fermi during the second quarter valued at approximately $1,845,000.

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.

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