Fermi (NASDAQ:FRMI) Stock Jumps 17.5% - What's Next?

Key Points

• Fermi shares surged 17.5% to $1.81 in Wednesday trading, with volume about 80% above its average.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $16.86, though Mizuho and Cantor Fitzgerald recently cut their individual targets.
• Insiders sold more than 12.1 million shares worth about $28.6 million over the past 90 days. Fermi’s flagship Project Matador remains under development, not an operating campus.

Fermi Inc. (NASDAQ:FRMI - Get Free Report)'s stock price rose 17.5% on Wednesday. The stock traded as high as $1.95 and last traded at $1.81. 29,535,875 shares traded hands during mid-day trading, an increase of 80% from the average session volume of 16,424,781 shares. The stock had previously closed at $1.54.

Wall Street Analysts Forecast Growth

FRMI has been the subject of several analyst reports. Mizuho lowered 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. Weiss Ratings lowered Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, August 14th. Finally, Cantor Fitzgerald decreased 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. One investment 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 company. According to data from MarketBeat.com, Fermi has an average rating of "Moderate Buy" and an average price target of $16.86.

Fermi Stock Performance

The business's 50 day moving average price is $3.74 and its 200-day moving average price is $6.24. The firm has a market capitalization of $1.16 billion and a PE ratio of -1.53.

Fermi (NASDAQ:FRMI - Get Free Report) last posted its quarterly earnings data 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 firm posted ($0.02) EPS. As a group, analysts anticipate that Fermi Inc. will post -0.33 earnings per share for the current year.

Insider Buying and Selling

In other news, major shareholder Toby Neugebauer sold 5,000,000 shares of the firm's stock in a transaction on Thursday, November 5th. The stock was sold at an average price of $1.52, for a total transaction of $7,600,000.00. Following the completion of the transaction, the insider directly owned 84,813,010 shares in the company, valued at $128,915,775.20. This trade represents a 5.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Insiders sold 12,125,749 shares of company stock worth $28,639,969 in the last 90 days. 2.83% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Fermi

Several hedge funds have recently bought and sold shares of the company. NewEdge Advisors LLC boosted its holdings in Fermi by 22.5% during the 2nd quarter. NewEdge Advisors LLC now owns 11,431 shares of the company's stock valued at $105,000 after acquiring an additional 2,101 shares during the period. Integrated Wealth Concepts LLC purchased a new stake in Fermi during the second quarter worth about $41,000. Farther Finance Advisors LLC increased its stake in Fermi by 139.1% during the third 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 period. GW&K Investment Management LLC lifted its position in shares of Fermi by 128.4% during the third quarter. GW&K Investment Management LLC now owns 11,748 shares of the company's stock worth $49,000 after purchasing an additional 6,604 shares in the last quarter. Finally, HighTower Advisors LLC lifted its position in shares of Fermi by 9.6% during the third quarter. HighTower Advisors LLC now owns 77,568 shares of the company's stock worth $327,000 after purchasing an additional 6,816 shares in the last quarter.

Fermi Company Profile

Fermi Inc. develops energy and data-center infrastructure intended to support artificial intelligence and other high-performance computing needs. Its business centers on planning and building integrated campuses that pair large-scale power resources with data-center facilities. The company's flagship development is Project Matador, a planned campus in the Texas Panhandle near Amarillo. The project is designed to combine data centers with a mix of power-generation and energy-storage resources; it remains a development project rather than an established portfolio of operating facilities.

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