Fervo Energy (NASDAQ:FRVO) Stock Falls 6% After Analyst Downgrade

Key Points

• Fervo Energy shares fell 6% to about $9.10 after JPMorgan cut its price target from $38 to $27, though it maintained an overweight rating. Trading volume was roughly 87% above the daily average.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $39.53; however, the company’s latest quarterly loss of $0.38 per share significantly missed expectations of a $0.09 loss.
• Several institutional investors, including Wellington Management and Value Aligned Research Advisors, established new positions during the second quarter. Fervo is developing enhanced geothermal projects in Nevada and Utah, including Project Red and Cape Station.

Shares of Fervo Energy Company (NASDAQ:FRVO - Get Free Report) traded down 6% during trading on Monday after JPMorgan Chase & Co. lowered their price target on the stock from $38.00 to $27.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Fervo Energy traded as low as $9.00 and last traded at $9.10. Approximately 9,961,226 shares changed hands during trading, an increase of 87% from the average daily volume of 5,340,161 shares. The stock had previously closed at $9.68.

A number of other equities analysts also recently issued reports on the stock. Northland Securities initiated coverage on shares of Fervo Energy in a research note on Thursday, September 10th. They issued an "outperform" rating and a $27.00 price target for the company. Jefferies Financial Group upgraded shares of Fervo Energy from a "hold" rating to a "buy" rating and decreased their price target for the stock from $41.00 to $34.00 in a research note on Monday, July 20th. Barclays lifted their price target on shares of Fervo Energy from $47.00 to $48.00 and gave the company an "overweight" rating in a research report on Wednesday, June 24th. Piper Sandler reissued an "overweight" rating on shares of Fervo Energy in a research note on Tuesday, June 23rd. Finally, UBS Group set a $48.00 price objective on shares of Fervo Energy in a report on Wednesday, June 24th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $39.53.

Hedge Funds Weigh In On Fervo Energy

Hedge funds have recently bought and sold shares of the company. Wellington Management Group LLP bought a new position in shares of Fervo Energy in the second quarter worth approximately $129,600,000. Value Aligned Research Advisors LLC bought a new stake in shares of Fervo Energy during the second quarter valued at approximately $63,155,000. Squarepoint Ops LLC bought a new stake in shares of Fervo Energy during the second quarter valued at approximately $12,423,000. State Street Corp purchased a new position in Fervo Energy in the 2nd quarter worth approximately $10,028,000. Finally, Resolute Advisors LLC purchased a new position in Fervo Energy in the 2nd quarter worth approximately $5,285,000.

Fervo Energy Stock Performance

The firm has a market capitalization of $2.68 billion and a price-to-earnings ratio of -2.22. The company has a debt-to-equity ratio of 0.08, a current ratio of 8.62 and a quick ratio of 8.62. The business's 50-day moving average is $16.09.

Fervo Energy (NASDAQ:FRVO - Get Free Report) last issued its quarterly earnings data on Wednesday, August 12th. The company reported ($0.38) EPS for the quarter, missing the consensus estimate of ($0.09) by ($0.29). The company had revenue of $0.11 million during the quarter. On average, research analysts forecast that Fervo Energy Company will post -0.54 EPS for the current fiscal year.

Fervo Energy Company Profile

Fervo Energy is a geothermal energy company focused on developing enhanced geothermal systems (EGS), which use horizontal drilling and hydraulic stimulation techniques to access heat in underground rock and produce electricity. Its approach is designed to expand geothermal generation beyond locations with naturally occurring conventional geothermal resources.

The company develops geothermal projects, including Project Red in northern Nevada and the larger Cape Station project in southwestern Utah.

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