Fermi (NASDAQ:FRMI) Stock Falls 4.4% Following Analyst Downgrade

Key Points

• Fermi shares fell 4.4% to $3.02 after Cantor Fitzgerald cut its price target from $12 to $8, though it maintained an overweight rating. Trading volume was about 37% above average.
• Other analysts have also reduced their price targets, but the consensus remains a “Moderate Buy” with a $20.67 average target. Ratings include two Strong Buys, seven Buys, three Holds and one Sell.
• Major shareholder Toby R. Neugebauer sold 1.3 million shares for approximately $4.1 million, reducing his ownership by 2.9%. Fermi is developing large-scale power-generation and data-center facilities, including its planned Texas nuclear campus.

Shares of Fermi Inc. (NASDAQ:FRMI - Get Free Report) traded down 4.4% on Monday after Cantor Fitzgerald lowered their price target on the stock from $12.00 to $8.00. Cantor Fitzgerald currently has an overweight rating on the stock. Fermi traded as low as $2.97 and last traded at $3.02. 21,746,630 shares changed hands during mid-day trading, an increase of 37% from the average daily volume of 15,871,330 shares. The stock had previously closed at $3.16.

Several other equities research analysts have also recently commented on FRMI. Stifel Nicolaus dropped their price objective on Fermi from $29.00 to $17.00 and set a "buy" rating on the stock in a research report on Tuesday, June 23rd. Weiss Ratings lowered Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, August 14th. Finally, Mizuho decreased their target price on Fermi from $27.00 to $11.00 and set an "outperform" rating for the company in a research report on Tuesday, July 28th. Two research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Fermi has a consensus rating of "Moderate Buy" and a consensus price target of $20.67.

Insider Buying and Selling

In other Fermi news, major shareholder Toby R. Neugebauer sold 1,297,200 shares of the firm's stock in a transaction dated Wednesday, October 14th. The stock was sold at an average price of $3.15, for a total value of $4,086,180.00. Following the transaction, the insider directly owned 43,359,176 shares of the company's stock, valued at approximately $136,581,404.40. This trade represents a 2.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 2.83% of the company's stock.

Institutional Investors Weigh In On Fermi

Several hedge funds and other institutional investors have recently made changes to their positions in FRMI. Integrated Wealth Concepts LLC bought a new stake in Fermi during the second quarter valued at approximately $41,000. NewEdge Advisors LLC bought a new position in Fermi in the first quarter worth approximately $54,000. SteelPeak Wealth LLC bought a new position in Fermi in the third quarter worth approximately $42,000. Farther Finance Advisors LLC boosted its stake 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 acquiring an additional 6,083 shares during the last quarter. Finally, Financial Management Professionals Inc. purchased a new position in shares of Fermi during the 2nd quarter worth $104,000.

Fermi Trading Down 4.4%

The company's 50 day moving average price is $4.96 and its two-hundred day moving average price is $5.95. The firm has a market cap of $1.94 billion and a PE ratio of -2.56.

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, topping the consensus estimate of ($0.06) by $0.02. During the same period in the previous year, the business earned ($0.02) earnings per share. Equities research analysts expect that Fermi Inc. will post -0.33 earnings per share for the current fiscal year.

About Fermi

Fermi Inc is an energy and infrastructure company focused on developing large-scale power generation and data center facilities. The company is pursuing an integrated model designed to provide reliable electricity for high-demand computing applications, including artificial intelligence and cloud infrastructure.

Its development activities center on the planned Fermi Nuclear Campus in the Texas Panhandle. The project is expected to combine nuclear power with other generation and energy technologies, potentially including natural gas, renewable energy and battery storage, alongside data center infrastructure.

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