Fervo Energy (NASDAQ:FRVO) Stock Price Down 2.5% - Here's Why

Key Points

• Fervo Energy shares fell 2.5% to $8.04, with trading volume about 10% above the daily average. The company has a $2.37 billion market capitalization and trades well below its 50-day moving average of $15.03.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $39.53, despite ratings ranging from “Sell” to “Strong Buy.” Recent targets include $27 from Northland Securities, $35 from Johnson Rice and $47 from Sanford C. Bernstein.
• The company reported a quarterly loss of $0.38 per share, missing the consensus estimate of a $0.09 loss, while revenue totaled just $0.11 million. Several major institutional investors, including Wellington Management and Value Aligned Research Advisors, recently initiated positions.

Fervo Energy Company (NASDAQ:FRVO - Get Free Report) shares fell 2.5% during trading on Friday. The stock traded as low as $7.83 and last traded at $8.04. Approximately 5,962,187 shares traded hands during trading, an increase of 10% from the average daily volume of 5,401,645 shares. The stock had previously closed at $8.25.

Wall Street Analyst Weigh In

FRVO has been the topic of a number of analyst reports. Sanford C. Bernstein reissued an "outperform" rating and set a $47.00 price target on shares of Fervo Energy in a research report on Friday, October 2nd. Northland Securities initiated coverage on Fervo Energy in a report on Thursday, September 10th. They set an "outperform" rating and a $27.00 target price on the stock. Weiss Ratings assumed coverage on Fervo Energy in a research note on Tuesday, August 18th. They issued a "sell (d)" rating for the company. Johnson Rice began coverage on shares of Fervo Energy in a research report on Wednesday, September 23rd. They set a "buy" rating and a $35.00 price objective for the company. Finally, 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. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $39.53.

Fervo Energy Trading Down 2.5%

The company has a market cap of $2.37 billion and a price-to-earnings ratio of -1.96. 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 has a 50-day moving average of $15.03.

Fervo Energy (NASDAQ:FRVO - Get Free Report) last issued its 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 business had revenue of $0.11 million for the quarter. On average, equities research analysts anticipate that Fervo Energy Company will post -0.54 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in FRVO. Wellington Management Group LLP acquired a new position in shares of Fervo Energy during the second quarter worth $129,600,000. Value Aligned Research Advisors LLC bought a new stake in shares of Fervo Energy in the 2nd quarter valued at about $63,155,000. Squarepoint Ops LLC acquired a new stake in shares of Fervo Energy in the second quarter valued at about $12,423,000. State Street Corp acquired a new stake in shares of Fervo Energy in the second quarter valued at about $10,028,000. Finally, Resolute Advisors LLC bought a new position in shares of Fervo Energy during the second quarter worth about $5,285,000.

About Fervo Energy

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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