Fervo Energy (NASDAQ:FRVO) Stock Falls 8.5% - Should You Sell?

Key Points

• Fervo Energy shares fell 8.5% to $8.25, with trading volume 46% above the average. The company’s market capitalization is approximately $2.43 billion.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and a $39.53 target price, despite mixed revisions including JPMorgan’s cut to $27 and Wall Street Zen’s downgrade to “Sell.”
• Fervo reported a quarterly loss of $0.38 per share, missing the $0.09 consensus estimate, while revenue was just $0.11 million. Analysts expect a full-year loss of $0.54 per share.

Fervo Energy Company (NASDAQ:FRVO - Get Free Report) shares traded down 8.5% during trading on Thursday. The company traded as low as $8.22 and last traded at $8.25. 7,901,600 shares traded hands during trading, an increase of 46% from the average daily volume of 5,403,266 shares. The stock had previously closed at $9.02.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on FRVO. Wall Street Zen upgraded shares of Fervo Energy from a "strong sell" rating to a "sell" rating in a research note on Monday, July 20th. Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $47.00 price objective on shares of Fervo Energy in a research report on Friday, October 2nd. UBS Group set a $48.00 price objective on shares of Fervo Energy in a research report on Wednesday, June 24th. Barclays increased their price objective on shares of Fervo Energy from $47.00 to $48.00 and gave the company an "overweight" rating in a research note on Wednesday, June 24th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Fervo Energy from $38.00 to $27.00 and set an "overweight" rating on the stock in a research report on Monday. 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 assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $39.53.

Fervo Energy Trading Down 8.5%

The firm has a market capitalization of $2.43 billion and a PE ratio of -2.01. The company's 50-day simple moving average is $15.03. 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 issued its quarterly earnings results on Wednesday, August 12th. The company reported ($0.38) earnings per share for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.29). The company had revenue of $0.11 million for the quarter. Sell-side analysts expect that Fervo Energy Company will post -0.54 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Fervo Energy

Institutional investors and hedge funds have recently bought and sold shares of the company. SBI Securities Co. Ltd. raised its stake in shares of Fervo Energy by 387.3% in the third quarter. SBI Securities Co. Ltd. now owns 4,512 shares of the company's stock valued at $61,000 after buying an additional 3,586 shares during the period. Corient Private Wealth LP bought a new position in shares of Fervo Energy during the 2nd quarter worth $229,000. Engineers Gate Manager LP bought a new position in shares of Fervo Energy during the 2nd quarter worth $272,000. Sax Wealth Advisors LLC purchased a new stake in Fervo Energy in the 3rd quarter worth about $154,000. Finally, AXQ Capital LP purchased a new stake in Fervo Energy in the 2nd quarter worth about $499,000.

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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