Fermi (NASDAQ:FRMI) Trading Up 7.9% - Here's What Happened

Key Points

• Fermi shares rose 7.9% to $5.523 during Tuesday’s trading, despite volume falling 68% below the daily average. The company’s market capitalization is approximately $3.70 billion.
• Analysts have reduced their price targets, but overall sentiment remains positive: Fermi has a “Moderate Buy” consensus rating and an average price target of $20.67, well above its current share price.
• Fermi reported a quarterly loss of $0.04 per share, beating estimates for a $0.06 loss. Director James Perry also sold 863,637 shares worth approximately $6.3 million, reducing his ownership by 5.17%.

Fermi Inc. (NASDAQ:FRMI - Get Free Report) was up 7.9% during mid-day trading on Tuesday . The stock traded as high as $5.56 and last traded at $5.5230. Approximately 4,713,993 shares were traded during trading, a decline of 68% from the average daily volume of 14,886,275 shares. The stock had previously closed at $5.12.

Analysts Set New Price Targets

FRMI has been the subject of a number of research analyst reports. Stifel Nicolaus cut their target price 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. Mizuho lowered their price target on Fermi from $27.00 to $11.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 28th. Evercore lowered Fermi from an "outperform" rating to an "in-line" rating and set a $11.00 price objective on the stock. in a research note on Friday, May 15th. Finally, Weiss Ratings cut Fermi from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, August 14th. Two analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $20.67.

Fermi Trading Up 12.7%

The firm's fifty day moving average price is $6.36 and its 200-day moving average price is $6.76. The company has a market cap of $3.70 billion and a P/E ratio of -4.90.

Fermi (NASDAQ:FRMI - Get Free Report) last released its 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 prior year, the firm posted ($0.02) earnings per share. As a group, research analysts forecast that Fermi Inc. will post -0.33 earnings per share for the current fiscal year.

Insider Activity at Fermi

In related 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 value of $6,313,186.47. Following the completion of the transaction, the director directly owned 15,827,807 shares of the company's stock, valued at $115,701,269.17. This trade represents a 5.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.

Hedge Funds Weigh In On Fermi

Hedge funds have recently made changes to their positions in the business. Leonteq Securities AG acquired a new stake in shares of Fermi during the 4th quarter valued at about $30,000. PNC Financial Services Group Inc. bought a new stake in Fermi in the fourth quarter valued at about $36,000. SBI Securities Co. Ltd. acquired a new position in Fermi in the fourth quarter worth about $41,000. NewEdge Advisors LLC acquired a new position in Fermi in the first quarter worth about $54,000. Finally, MML Investors Services LLC acquired a new stake in Fermi during the fourth quarter valued at approximately $81,000.

Fermi Company Profile

Fermi's mission is to power the artificial intelligence (“AI”) needs of tomorrow. We are an advanced energy and hyperscaler development company purpose-built for the AI era. Our mission is to deliver up to 11 gigawatts (“GW”) of low-carbon, HyperRedundant™, and on-demand power directly to the world's most compute-intensive businesses with 1.1 GW of power projected to be online by the end of 2026. We have entered into a long-term lease on a site large enough to simultaneously house the next three largest data center campuses by square footage currently in existence.

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