Fermi (NASDAQ:FRMI) Stock Falls 5.3% - Here's Why

Key Points

• Fermi shares fell 5.3% to $2.86 in heavy mid-day trading, well below their 50-day and 200-day moving averages of $4.39 and $6.58.
• Analyst sentiment remains mixed but leans positive: Fermi has a “Moderate Buy” consensus rating and an average price target of $16.86, despite recent target cuts from Cantor Fitzgerald and Mizuho.
• Major shareholder Toby Neugebauer sold 2.75 million shares worth about $10.3 million, while insiders sold roughly 4.47 million shares during the quarter.

Shares of Fermi Inc. (NASDAQ:FRMI - Get Free Report) were down 5.3% on Thursday. The company traded as low as $2.79 and last traded at $2.86. Approximately 15,872,762 shares traded hands during mid-day trading, a decline of 0% from the average session volume of 15,921,067 shares. The stock had previously closed at $3.02.

Wall Street Analyst Weigh In

FRMI has been the topic of a number of research reports. Weiss Ratings lowered shares of Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday, August 14th. Cantor Fitzgerald dropped their price target on shares of 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 cut their price objective on Fermi from $27.00 to $11.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 28th. One 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 assigned a Sell rating to the stock. According to data from MarketBeat, Fermi has an average rating of "Moderate Buy" and an average price target of $16.86.

Fermi Price Performance

The business's 50 day moving average is $4.39 and its 200 day moving average is $6.58. The stock has a market cap of $1.83 billion and a price-to-earnings ratio of -2.42.

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, beating analysts' consensus estimates of ($0.06) by $0.02. During the same period last year, the firm earned ($0.02) earnings per share. As a group, analysts forecast that Fermi Inc. will post -0.33 earnings per share for the current year.

Insider Activity at Fermi

In other news, major shareholder Toby Neugebauer sold 2,750,000 shares of the stock in a transaction dated 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 owned 91,609,659 shares in the company, valued at approximately $341,704,028.07. This represents a 2.91% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. In the last quarter, insiders sold 4,467,949 shares of company stock valued at $15,622,757. Corporate insiders own 2.83% of the company's stock.

Institutional Investors Weigh In On Fermi

Several institutional investors have recently added to or reduced their stakes in FRMI. BlackRock Inc. acquired a new stake in shares of Fermi during the second quarter worth about $38,499,000. Value Aligned Research Advisors LLC acquired a new stake in shares of Fermi in the 2nd quarter valued at about $12,531,000. Philadelphia Financial Management of San Francisco LLC acquired a new stake in shares of Fermi in the 2nd quarter valued at about $3,893,000. Alyeska Investment Group L.P. grew its stake in 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 buying an additional 1,303,979 shares during the last quarter. Finally, Sequoia Financial Advisors LLC purchased a new position in Fermi during the 2nd quarter worth 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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