Fermi (NASDAQ:FRMI) Stock Falls 15.3% - Here's Why

Key Points

• Fermi shares fell 15.3% to $2.21, with trading volume 63% above the daily average.
• Analysts have sharply reduced their price targets, including Cantor Fitzgerald’s cut to $8 from $12 and Mizuho’s reduction to $11 from $27, though the consensus rating remains “Moderate Buy.”
• Investor sentiment was also pressured by insider selling, including major shareholder Toby Neugebauer’s sale of 2.75 million shares; insiders sold 4.47 million shares worth $15.6 million over the past 90 days.

Shares of Fermi Inc. (NASDAQ:FRMI - Get Free Report) traded down 15.3% during mid-day trading on Monday. The company traded as low as $2.19 and last traded at $2.21. 25,983,022 shares traded hands during trading, an increase of 63% from the average daily volume of 15,967,230 shares. The stock had previously closed at $2.61.

Analyst Ratings Changes

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

Fermi Stock Down 15.7%

The stock has a 50 day simple moving average of $4.26 and a two-hundred day simple moving average of $6.51. The stock has a market capitalization of $1.41 billion and a P/E ratio of -1.86.

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

Insiders Place Their Bets

In other Fermi news, major shareholder Toby Neugebauer sold 2,750,000 shares of the business's stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $3.73, for a total transaction of $10,257,500.00. Following the transaction, the insider owned 91,609,659 shares of the company's stock, valued at $341,704,028.07. The trade was a 2.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold a total of 4,467,949 shares of company stock worth $15,622,757 over the last 90 days. 2.83% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in FRMI. Integrated Wealth Concepts LLC acquired a new stake in Fermi during the 2nd quarter valued at $41,000. SteelPeak Wealth LLC bought a new stake in shares of Fermi during the 3rd quarter worth about $42,000. Farther Finance Advisors LLC boosted its holdings in shares of Fermi by 139.1% during the 3rd quarter. Farther Finance Advisors LLC now owns 10,456 shares of the company's stock worth $44,000 after buying an additional 6,083 shares during the period. NewEdge Advisors LLC acquired a new position in Fermi in the 1st quarter valued at about $54,000. Finally, Chicago Partners Investment Group LLC acquired a new position in Fermi in the 3rd quarter valued at about $64,000.

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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