Fervo Energy (NASDAQ:FRVO) Shares Down 4.5% - Here's What Happened

Key Points

• Fervo Energy shares fell 4.5% to $8.90 in Wednesday’s midday trading, while trading volume ran 75% above its average.
• Analysts maintain a consensus “Moderate Buy” rating and an average $38.50 price target, though Bank of America and Robert W. Baird recently cut their targets.
• The company’s latest reported quarter missed expectations, posting an adjusted loss of $0.38 per share versus a forecast loss of $0.09, with revenue of $0.11 million.

Fervo Energy Company (NASDAQ:FRVO - Get Free Report) fell 4.5% during mid-day trading on Wednesday. The company traded as low as $8.38 and last traded at $8.90. 9,645,442 shares changed hands during mid-day trading, an increase of 75% from the average daily volume of 5,521,348 shares. The stock had previously closed at $9.32.

Analyst Ratings Changes

Several brokerages have recently commented on FRVO. Bank of America reduced their target price on Fervo Energy from $36.00 to $30.00 and set a "buy" rating for the company in a report on Friday, September 25th. Robert W. Baird reduced their price objective on shares of Fervo Energy from $50.00 to $35.00 and set an "outperform" rating for the company in a research note on Thursday, August 13th. Wolfe Research upgraded shares of Fervo Energy from a "peer perform" rating to an "outperform" rating and set a $29.00 target price for the company in a report on Friday, September 25th. Morgan Stanley began coverage on shares of Fervo Energy in a research report on Thursday, October 29th. They issued an "overweight" rating and a $23.00 target price on the stock. Finally, Sanford C. Bernstein restated an "outperform" rating and set a $47.00 price target on shares of Fervo Energy in a report on Friday, October 2nd. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Fervo Energy has a consensus rating of "Moderate Buy" and an average target price of $38.50.

Fervo Energy Stock Down 4.5%

The stock's 50-day simple moving average is $13.56. The firm has a market capitalization of $2.62 billion and a PE ratio of -2.17. The company has a quick ratio of 8.62, a current ratio of 8.62 and a debt-to-equity ratio of 0.08.

Fervo Energy (NASDAQ:FRVO - Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The company reported ($0.38) EPS for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.29). The business had revenue of $0.11 million during the quarter. As a group, sell-side analysts predict that Fervo Energy Company will post -0.58 EPS for the current year.

Institutional Trading of Fervo Energy

Several institutional investors have recently made changes to their positions in FRVO. Wellington Management Group LLP purchased a new position in shares of Fervo Energy during the 2nd quarter valued at $129,600,000. Robeco Schweiz AG increased its stake in shares of Fervo Energy by 66.7% in the third quarter. Robeco Schweiz AG now owns 3,282,928 shares of the company's stock worth $44,615,000 after acquiring an additional 1,313,704 shares during the last quarter. Value Aligned Research Advisors LLC purchased a new stake in shares of Fervo Energy during the second quarter worth $63,155,000. Squarepoint Ops LLC purchased a new stake in shares of Fervo Energy during the second quarter worth $12,423,000. Finally, State Street Corp acquired a new stake in Fervo Energy during the second quarter valued at $10,028,000.

Fervo Energy Company Profile

Fervo Energy is a geothermal energy company developing enhanced geothermal systems designed to generate electricity from heat found deep beneath the earth's surface. The company applies techniques adapted from the oil and gas industry, including horizontal drilling and hydraulic stimulation, to create engineered geothermal reservoirs in areas where conventional geothermal resources may not be available.

Founded in 2017, Fervo combines advanced drilling, distributed fiber-optic sensing and reservoir engineering to evaluate and operate geothermal projects.

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