Fervo Energy (NASDAQ:FRVO) Sets New 12-Month Low - Time to Sell?

Key Points

• Fervo Energy shares fell 5.5% to $14.45 after reaching a new 52-week low of $14.40, well below the 50-day moving average of $19.25.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $40.87, despite one “Sell” rating and several recent target reductions.
• The company’s latest quarterly results missed expectations, reporting an adjusted loss of $0.38 per share versus the estimated $0.09 loss, on revenue of just $0.11 million.

Fervo Energy Company (NASDAQ:FRVO - Get Free Report) reached a new 52-week low during trading on Monday. The company traded as low as $14.40 and last traded at $14.45, with a volume of 2129143 shares trading hands. The stock had previously closed at $15.18.

Wall Street Analyst Weigh In

Several research firms have commented on FRVO. William Blair initiated coverage on Fervo Energy in a research note on Monday, June 8th. They set an "outperform" rating and a $43.00 price objective for the company. Barclays increased their price target on Fervo Energy from $47.00 to $48.00 and gave the stock an "overweight" rating in a report on Wednesday, June 24th. Jefferies Financial Group upgraded shares of Fervo Energy from a "hold" rating to a "buy" rating and cut their price objective for the stock from $41.00 to $34.00 in a research report on Monday, July 20th. Robert W. Baird dropped their price target on shares of Fervo Energy from $50.00 to $35.00 and set an "outperform" rating on the stock in a research note on Thursday, August 13th. Finally, Weiss Ratings assumed coverage on Fervo Energy in a research report on Tuesday, August 18th. They set a "sell (d)" rating on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $40.87.

Fervo Energy Stock Down 5.5%

The company's 50-day simple moving average is $19.25.

Fervo Energy (NASDAQ:FRVO - Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The company reported ($0.38) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.29). The company had revenue of $0.11 million for the quarter. Analysts forecast that Fervo Energy Company will post -0.48 EPS for the current fiscal year.

Institutional Trading of Fervo Energy

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Corient Private Wealth LP acquired a new position in Fervo Energy in the second quarter valued at $229,000. Engineers Gate Manager LP acquired a new position in shares of Fervo Energy in the 2nd quarter valued at about $272,000. AXQ Capital LP acquired a new stake in Fervo Energy during the 2nd quarter worth approximately $499,000. NewEdge Advisors LLC purchased a new position in Fervo Energy in the second quarter valued at approximately $1,245,000. Finally, Ranger Investment Management L.P. acquired a new position in Fervo Energy during the second quarter valued at approximately $1,455,000.

About Fervo Energy

Fervo Energy is a geothermal energy company developing enhanced geothermal systems (EGS) designed to produce electricity from heat found deep underground. Its approach applies horizontal drilling, hydraulic stimulation and oil-and-gas well technologies to access geothermal resources in locations that may not have naturally permeable reservoirs.

The company develops geothermal projects and related drilling and reservoir-engineering technologies for utility-scale power generation. Fervo's Project Red demonstration in northern Nevada has been used to validate its EGS approach, while the company is developing the larger Cape Station project in southwestern Utah.

Fervo Energy was founded in 2017 by Tim Latimer and Jamie Beard.

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