Fermi (NASDAQ:FRMI) Stock Price Down 2.7% - Here's Why

Key Points

• Fermi shares fell 2.7% to $2.86 on elevated trading volume, with the stock well below its 50-day and 200-day moving averages.
• Analysts have sharply reduced their price targets, including Cantor Fitzgerald to $8 and Mizuho to $11, although the overall consensus remains a “Moderate Buy” with a $20.67 target.
• Investor sentiment was also pressured by major shareholder Toby R. Neugebauer selling 1.3 million shares for about $4.1 million; Fermi recently reported a quarterly loss of $0.04 per share, albeit better than estimates.

Fermi Inc. (NASDAQ:FRMI - Get Free Report)'s stock price was down 2.7% on Wednesday. The company traded as low as $2.80 and last traded at $2.86. Approximately 16,132,232 shares changed hands during trading, an increase of 2% from the average session volume of 15,852,352 shares. The stock had previously closed at $2.94.

Analyst Ratings Changes

Several brokerages recently weighed in on FRMI. Cantor Fitzgerald reduced their price target on shares of Fermi from $12.00 to $8.00 and set an "overweight" rating on the stock in a research report on Friday, October 16th. Mizuho lowered their price target on shares of 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 report on Friday, August 14th. Finally, Stifel Nicolaus reduced their price target on shares of Fermi from $29.00 to $17.00 and set a "buy" rating for the company in a research report on Tuesday, June 23rd. Two research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Fermi presently has an average rating of "Moderate Buy" and a consensus target price of $20.67.

Fermi Price Performance

The stock has a market cap of $1.83 billion and a price-to-earnings ratio of -2.42. The firm has a fifty day moving average of $4.82 and a 200 day moving average of $5.91.

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 the consensus estimate of ($0.06) by $0.02. During the same quarter in the previous year, the firm posted ($0.02) earnings per share. Research analysts anticipate that Fermi Inc. will post -0.33 earnings per share for the current fiscal year.

Insider Buying and Selling at Fermi

In related news, major shareholder Toby R. Neugebauer sold 1,297,200 shares of the stock in a transaction that occurred on Wednesday, October 14th. The shares were sold at an average price of $3.15, for a total transaction of $4,086,180.00. Following the completion of the transaction, the insider owned 43,359,176 shares of the company's stock, valued at approximately $136,581,404.40. This trade represents a 2.90% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 2.83% of the stock is currently owned by corporate insiders.

Institutional Trading of Fermi

Hedge funds have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in Fermi during the 2nd quarter worth approximately $38,499,000. BlueCrest Capital Management Ltd purchased a new stake in Fermi during the 2nd quarter valued at approximately $33,276,000. Alyeska Investment Group L.P. lifted its stake in shares of Fermi by 82.4% in the 2nd quarter. Alyeska Investment Group L.P. now owns 2,886,836 shares of the company's stock worth $26,443,000 after acquiring an additional 1,303,979 shares during the period. Weiss Asset Management LP boosted its stake in shares of Fermi by 431.6% in the first quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company's stock valued at $14,104,000 after buying an additional 1,960,764 shares in the last quarter. Finally, Ratan Capital Management LP acquired a new position in Fermi during the second quarter worth about $19,774,000.

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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