Fermi (NASDAQ:FRMI) Shares Up 3.1% - Here's Why

Key Points

• Fermi shares rose 3.1% to $2.62 in midday trading, with volume about 33% above the average. The company has a $1.68 billion market capitalization and trades well below its 50-day and 200-day moving averages.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $16.86, although Cantor Fitzgerald and Mizuho recently cut their targets to $8 and $11, respectively.
• Major shareholder Toby Neugebauer sold 420,749 shares, and insiders have sold roughly 4.47 million shares worth $15.6 million over the past 90 days. Meanwhile, several institutional investors—including BlackRock and BlueCrest Capital—established or increased positions.

Shares of Fermi Inc. (NASDAQ:FRMI - Get Free Report) shot up 3.1% during mid-day trading on Tuesday. The stock traded as high as $2.75 and last traded at $2.62. Approximately 21,157,609 shares changed hands during mid-day trading, an increase of 33% from the average daily volume of 15,882,618 shares. The stock had previously closed at $2.54.

Analysts Set New Price Targets

Several analysts have commented on the company. Weiss Ratings downgraded Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, August 14th. Cantor Fitzgerald decreased their price target on Fermi from $12.00 to $8.00 and set an "overweight" rating for the company in a research note on Friday, October 16th. Finally, Mizuho lowered their price target on Fermi from $27.00 to $11.00 and set an "outperform" rating on the stock in a report on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $16.86.

Fermi Stock Up 3.1%

The company has a market cap of $1.68 billion and a P/E ratio of -2.22. The company has a fifty day moving average of $4.59 and a 200 day moving average of $6.68.

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

Insider Activity at Fermi

In other news, major shareholder Toby 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 transaction 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Over the last ninety days, insiders have sold 4,467,949 shares of company stock worth $15,622,757. 2.83% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Fermi

A number of institutional investors and hedge funds have recently made changes to their positions in FRMI. BlackRock Inc. purchased a new stake in Fermi during the second quarter valued at approximately $38,499,000. BlueCrest Capital Management Ltd purchased a new position in shares of Fermi during the 2nd quarter worth $33,276,000. Ratan Capital Management LP purchased a new position in shares of Fermi during the 2nd quarter worth $19,774,000. Weiss Asset Management LP boosted its stake in shares of Fermi by 431.6% during the 1st quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company's stock worth $14,104,000 after acquiring an additional 1,960,764 shares during the last quarter. Finally, Bank of America Corp DE bought a new stake in shares of Fermi during the 2nd quarter valued at $17,859,000.

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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