Fermi (NASDAQ:FRMI) Stock Price Down 15.9% - Here's Why

Key Points

• Fermi shares plunged 15.9% to $1.53, with trading volume 155% above its average.
• Analysts cut price targets, including Cantor Fitzgerald to $8 and Mizuho to $11, though the consensus rating remains “Moderate Buy” with a $16.86 target.
• Major shareholder Toby Neugebauer sold 2.75 million shares; insiders have sold about 4.47 million shares worth $15.6 million over the past 90 days.

Fermi Inc. (NASDAQ:FRMI - Get Free Report) shares fell 15.9% on Thursday. The company traded as low as $1.44 and last traded at $1.53. Approximately 41,370,481 shares traded hands during mid-day trading, an increase of 155% from the average session volume of 16,228,023 shares. The stock had previously closed at $1.82.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Cantor Fitzgerald dropped their price target on Fermi from $12.00 to $8.00 and set an "overweight" rating on the stock in a research report on Friday, October 16th. Mizuho reduced their price objective on shares of Fermi from $27.00 to $11.00 and set an "outperform" rating for the company in a research note on Tuesday, July 28th. Finally, Weiss Ratings downgraded Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $16.86.

Fermi Price Performance

The stock has a market cap of $981.13 million and a price-to-earnings ratio of -1.30. The stock's 50 day simple moving average is $4.03 and its two-hundred day simple moving average is $6.40.

Fermi (NASDAQ:FRMI - Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The company reported ($0.04) EPS for the quarter, topping analysts' consensus estimates of ($0.06) by $0.02. During the same quarter in the prior year, the firm posted ($0.02) EPS. As a group, analysts predict 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 2,750,000 shares of the stock in a transaction dated Tuesday, October 13th. The shares were sold at an average price of $3.73, for a total transaction of $10,257,500.00. Following the sale, the insider owned 91,609,659 shares of the company's stock, valued at $341,704,028.07. This represents a 2.91% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In the last 90 days, insiders have sold 4,467,949 shares of company stock worth $15,622,757. 2.83% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Fermi

Several large investors have recently made changes to their positions in FRMI. Integrated Wealth Concepts LLC acquired a new position in shares of Fermi in the 2nd quarter valued at $41,000. NewEdge Advisors LLC acquired a new position in shares of Fermi in the 1st quarter valued at approximately $54,000. SteelPeak Wealth LLC acquired a new position in shares of Fermi in the third quarter valued at approximately $42,000. Farther Finance Advisors LLC increased its holdings 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 in the last quarter. Finally, Financial Management Professionals Inc. bought a new position in shares of Fermi during the second quarter worth about $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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