Fermi (NASDAQ:FRMI) Trading Down 7.6% - Here's Why

Key Points

• Fermi shares fell 7.6% to about $4.46, with roughly 5.8 million shares traded—62% below average volume—bringing the stock well below its 50-day and 200-day moving averages.
• Analysts have sharply reduced price targets, including Stifel’s cut to $17 and Mizuho’s to $11, although the consensus remains a “Moderate Buy” with an average target of $20.67.
• Fermi reported a quarterly loss of $0.04 per share, beating estimates for a $0.06 loss, while director James Perry sold 863,637 shares worth about $6.3 million.

Fermi Inc. (NASDAQ:FRMI - Get Free Report) fell 7.6% during trading on Thursday . The company traded as low as $4.43 and last traded at $4.4550. Approximately 5,785,425 shares changed hands during mid-day trading, a decline of 62% from the average daily volume of 15,119,521 shares. The stock had previously closed at $4.82.

Analysts Set New Price Targets

FRMI has been the subject of a number of research reports. Weiss Ratings cut shares of Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, August 14th. Stifel Nicolaus dropped their price objective on shares of Fermi from $29.00 to $17.00 and set a "buy" rating for the company in a research note on Tuesday, June 23rd. Finally, Mizuho lowered their target price on Fermi from $27.00 to $11.00 and set an "outperform" rating on the stock in a report on Tuesday, July 28th. Two analysts have rated the stock with a Strong Buy rating, seven have issued 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, the stock has a consensus rating of "Moderate Buy" and an average price target of $20.67.

Fermi Trading Down 4.0%

The company has a market capitalization of $2.96 billion and a price-to-earnings ratio of -3.93. The company's 50 day simple moving average is $5.79 and its 200-day simple moving average is $6.37.

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, beating analysts' consensus estimates of ($0.06) by $0.02. During the same quarter last year, the business posted ($0.02) earnings per share. Sell-side analysts anticipate that Fermi Inc. will post -0.33 EPS for the current year.

Insider Buying and Selling at Fermi

In other news, Director James Perry sold 863,637 shares of the firm's stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $7.31, for a total transaction of $6,313,186.47. Following the sale, the director owned 15,827,807 shares in the company, valued at $115,701,269.17. This trade represents a 5.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link.

Hedge Funds Weigh In On Fermi

Institutional investors have recently added to or reduced their stakes in the business. Leonteq Securities AG acquired a new stake in Fermi in the 4th quarter worth about $30,000. Integrated Wealth Concepts LLC acquired a new stake in shares of Fermi in the second quarter worth approximately $41,000. NewEdge Advisors LLC purchased a new stake in Fermi in the first quarter valued at approximately $54,000. Resona Asset Management Co. Ltd. purchased a new stake in Fermi in the first quarter valued at approximately $73,000. Finally, Janney Montgomery Scott LLC acquired a new position in Fermi during the first quarter worth approximately $91,000.

About Fermi

Fermi Inc is an energy and digital infrastructure company developing large-scale power-generation and data-center facilities to support energy-intensive computing, including artificial intelligence applications. Its business focuses on integrating electricity generation, transmission infrastructure and data-center capacity within dedicated campuses.

The company's primary development effort is the Fermi America project near Amarillo, Texas, also referred to as Project Matador. The planned campus is intended to use a diversified energy portfolio that may include natural gas, nuclear power, solar generation and battery storage, with the goal of providing reliable electricity for data centers and other high-demand technology users.

Fermi's operations are currently centered on the United States, particularly Texas.

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