Fermi (NASDAQ:FRMI) Stock Jumps 26.7% - Should You Buy?

Fermi Inc. (NASDAQ:FRMI - Get Free Report)'s stock price shot up 26.7% during trading on Friday. The stock traded as high as $2.92 and last traded at $2.61. 72,322,466 shares traded hands during trading, an increase of 326% from the average daily volume of 16,996,029 shares. The stock had previously closed at $2.06.

Key Stories Impacting Fermi

Investors following FRMI have been watching these stories:

• Negative Sentiment: The new commitment only partly offsets the termination of a previously announced $6.5 billion deal, a major setback to Fermi’s development plans. MSN article
• Negative Sentiment: Fermi reported a third-quarter loss of $0.22 per share, wider than analyst estimates of roughly $0.07–$0.08. The earnings miss adds pressure as the company works to turn its projects into results. MarketScreener article
• Negative Sentiment: A Seeking Alpha analyst downgraded the stock, arguing that its outlook remains too speculative to justify optimism—highlighting the execution risks behind the growth story. Seeking Alpha article

Analyst Ratings Changes

FRMI has been the topic of several recent analyst reports. Weiss Ratings reiterated a "sell (e+)" rating on shares of Fermi in a research note on Thursday. Cantor Fitzgerald cut their target price on shares of Fermi from $12.00 to $8.00 and set an "overweight" rating on the stock in a report on Friday, October 16th. Finally, Mizuho reduced 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. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $13.83.

Fermi Stock Performance

The business's 50 day simple moving average is $3.63 and its 200-day simple moving average is $6.16. The company has a market cap of $1.66 billion and a price-to-earnings ratio of -2.19.

Fermi (NASDAQ:FRMI - Get Free Report) last released its quarterly earnings data on Thursday, November 12th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.15). Research analysts expect that Fermi Inc. will post -0.33 earnings per share for the current year.

Insider Transactions at Fermi

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

Hedge Funds Weigh In On Fermi

Several hedge funds and other institutional investors have recently added to or reduced their stakes in FRMI. State Street Corp raised its stake in Fermi by 49.2% during the 3rd quarter. State Street Corp now owns 6,311,025 shares of the company's stock valued at $26,569,000 after purchasing an additional 2,081,579 shares during the last quarter. BlackRock Inc. acquired a new stake in Fermi during the second quarter valued at approximately $38,499,000. BlueCrest Capital Management Ltd bought a new stake in Fermi in the second quarter valued at $33,276,000. Alyeska Investment Group L.P. increased its position in shares of 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 purchasing an additional 1,303,979 shares in the last quarter. Finally, Horizon Kinetics Asset Management LLC increased its holdings in shares of Fermi by 219.5% during the third quarter. Horizon Kinetics Asset Management LLC now owns 2,633,603 shares of the company's stock worth $11,087,000 after buying an additional 1,809,376 shares in the last quarter.

About Fermi

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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