Fermi (NASDAQ:FRMI) Stock Falls 8.7% - Here's What Happened

Key Points

• Fermi shares fell 8.7% to $2.61, with about 15.6 million shares changing hands. The company has a $1.67 billion market capitalization and trades below both its 50-day and 200-day moving averages.
• Analysts recently lowered their price targets, including Mizuho to $11 and Cantor Fitzgerald to $8, although the stock retains a consensus “Moderate Buy” rating and an average target of $16.86.
• Major shareholder Toby Neugebauer sold 420,749 shares, and insiders have sold approximately 4.47 million shares worth $15.6 million over the past 90 days. Fermi recently reported a quarterly loss of $0.04 per share, beating estimates of a $0.06 loss.

Shares of Fermi Inc. (NASDAQ:FRMI - Get Free Report) traded down 8.7% during trading on Friday. The stock traded as low as $2.52 and last traded at $2.61. Approximately 15,614,555 shares were traded during trading, a decline of 2% from the average daily volume of 15,915,947 shares. The stock had previously closed at $2.86.

Analysts Set New Price Targets

FRMI has been the subject of a number of research reports. Mizuho dropped their target price on shares of Fermi from $27.00 to $11.00 and set an "outperform" rating for the company in a report on Tuesday, July 28th. Cantor Fitzgerald decreased 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. Finally, Weiss Ratings cut shares of Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, August 14th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $16.86.

Fermi Trading Down 8.7%

The firm has a 50 day moving average price of $4.33 and a 200-day moving average price of $6.55. The firm has a market cap of $1.67 billion and a PE ratio of -2.21.

Fermi (NASDAQ:FRMI - Get Free Report) last released its earnings results on Thursday, August 13th. The company reported ($0.04) earnings per share for the quarter, topping analysts' consensus estimates of ($0.06) by $0.02. During the same quarter in the previous year, the business earned ($0.02) EPS. Equities analysts forecast that Fermi Inc. will post -0.33 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, major shareholder Toby Neugebauer sold 420,749 shares of the company's stock in a transaction dated Tuesday, October 20th. The stock was sold at an average price of $3.04, for a total transaction of $1,279,076.96. Following the completion of the transaction, the insider directly owned 91,188,910 shares of the company's stock, valued at approximately $277,214,286.40. This represents a 0.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders sold 4,467,949 shares of company stock valued at $15,622,757 in the last 90 days. 2.83% of the stock is owned by company insiders.

Institutional Trading of Fermi

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. NewEdge Advisors LLC raised its position in Fermi by 22.5% in the 2nd quarter. NewEdge Advisors LLC now owns 11,431 shares of the company's stock valued at $105,000 after purchasing an additional 2,101 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new position in Fermi during the 2nd quarter worth $41,000. Farther Finance Advisors LLC grew its position in 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 purchasing an additional 6,083 shares during the last quarter. SteelPeak Wealth LLC acquired a new position in Fermi in the third quarter valued at $42,000. Finally, Financial Management Professionals Inc. acquired a new position in Fermi in the second quarter valued at $104,000.

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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