Fermi (NASDAQ:FRMI) Stock Falls 3.8% on Insider Selling

Key Points

• Fermi shares fell 3.8% to $2.55 after major shareholder Toby Neugebauer sold 420,749 shares for approximately $1.28 million. Trading volume rose 7% above the stock’s average.
• Analysts recently cut their price targets, including Cantor Fitzgerald to $8 and Mizuho to $11, though the consensus rating remains “Moderate Buy” with an average target of $20.67.
• Fermi reported quarterly EPS of negative $0.04, beating the expected negative $0.06, while institutional investors including BlackRock and BlueCrest Capital established significant new positions during the second quarter.

Fermi Inc. (NASDAQ:FRMI - Get Free Report) shares traded down 3.8% on Friday after an insider sold shares in the company. The stock traded as low as $2.53 and last traded at $2.55. 16,990,398 shares were traded during trading, an increase of 7% from the average daily volume of 15,874,263 shares. The stock had previously closed at $2.65.

Specifically, major shareholder Toby Neugebauer sold 420,749 shares of Fermi stock in a transaction on 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 directly owned 91,188,910 shares of the company's stock, valued at approximately $277,214,286.40. The trade was a 0.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link.

Analyst Ratings Changes

A number of research analysts recently commented on FRMI shares. Cantor Fitzgerald reduced their target price on Fermi from $12.00 to $8.00 and set an "overweight" rating on the stock in a research note on Friday, October 16th. Weiss Ratings lowered Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, August 14th. Finally, Mizuho dropped their price target on Fermi from $27.00 to $11.00 and set an "outperform" rating for the company in a research note on Tuesday, July 28th. Two research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $20.67.

Fermi Trading Down 3.8%

The company's fifty day moving average is $4.64 and its 200 day moving average is $5.88. The company has a market cap of $1.64 billion and a P/E ratio of -2.16.

Fermi (NASDAQ:FRMI - Get Free Report) last posted its quarterly earnings results on Thursday, August 13th. The company reported ($0.04) earnings per share for the quarter, topping the consensus estimate of ($0.06) by $0.02. During the same quarter in the prior year, the company earned ($0.02) earnings per share. Analysts anticipate that Fermi Inc. will post -0.33 EPS for the current year.

Institutional Investors Weigh In On Fermi

Institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in shares of Fermi in the second quarter valued at about $38,499,000. BlueCrest Capital Management Ltd purchased a new stake in shares of Fermi during the second quarter worth about $33,276,000. Alyeska Investment Group L.P. boosted its holdings in shares of Fermi by 82.4% during the second 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 during the period. Ratan Capital Management LP purchased a new stake in shares of Fermi during the second quarter worth about $19,774,000. Finally, Bank of America Corp DE bought a new stake in shares of Fermi in the second quarter worth about $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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