Traders Purchase Large Volume of Fermi Call Options (NASDAQ:FRMI)

Key Points

• Traders purchased 44,426 call options on Fermi on Thursday — about a 97% increase versus typical call volume, indicating unusually strong bullish options activity.
• Insiders have been selling heavily: two executives sold ~398k and ~427k shares on April 9, and insiders have disposed of 13,435,207 shares worth $67.8M in the past 90 days.
• Analysts are broadly positive with a consensus rating of "Buy" and an average price target of $26.89, while the stock trades at $6.33 (one-year range $4.47–$36.99), showing a large gap between current price and analyst expectations.

Fermi Inc. (NASDAQ:FRMI - Get Free Report) was the recipient of some unusual options trading activity on Thursday. Stock traders acquired 44,426 call options on the stock. This represents an increase of approximately 97% compared to the typical volume of 22,569 call options.

Analyst Ratings Changes

Several research firms have recently commented on FRMI. Texas Capital upgraded shares of Fermi to a "strong-buy" rating in a research report on Tuesday, January 20th. Cantor Fitzgerald assumed coverage on shares of Fermi in a research report on Thursday, April 9th. They issued an "overweight" rating and a $8.00 target price for the company. Citizens Jmp assumed coverage on shares of Fermi in a research report on Monday, February 9th. They issued a "market outperform" rating and a $30.00 target price for the company. Weiss Ratings reiterated a "sell (e+)" rating on shares of Fermi in a research report on Monday, March 23rd. Finally, UBS Group decreased their target price on shares of Fermi from $30.00 to $8.00 and set a "buy" rating for the company in a research report on Wednesday, April 1st. Three investment analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Buy" and a consensus price target of $26.89.

Fermi Price Performance

FRMI traded up $0.50 on Thursday, reaching $6.33. The company had a trading volume of 11,200,325 shares, compared to its average volume of 8,867,675. The firm has a fifty day moving average of $7.76. The stock has a market cap of $3.98 billion and a P/E ratio of -7.53. Fermi has a one year low of $4.47 and a one year high of $36.99.

Insider Buying and Selling at Fermi

In other news, insider Charles Lynn Hamilton sold 398,140 shares of the company's stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of $4.58, for a total transaction of $1,823,481.20. Following the completion of the transaction, the insider owned 5,525,910 shares in the company, valued at approximately $25,308,667.80. This represents a 6.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Blanes Jacobo Ortiz sold 427,363 shares of the company's stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $4.58, for a total transaction of $1,957,322.54. Following the transaction, the chief operating officer owned 5,469,092 shares of the company's stock, valued at $25,048,441.36. This represents a 7.25% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 13,435,207 shares of company stock worth $67,803,539 in the last ninety days.

Hedge Funds Weigh In On Fermi

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Hsbc Holdings PLC acquired a new stake in Fermi in the 4th quarter valued at about $1,056,000. Invesco Ltd. acquired a new stake in Fermi in the 4th quarter valued at about $8,284,000. Axxcess Wealth Management LLC acquired a new stake in Fermi in the 4th quarter valued at about $604,000. XTX Topco Ltd acquired a new stake in Fermi in the 4th quarter valued at about $1,149,000. Finally, Quadrature Capital Ltd acquired a new stake in Fermi in the 4th quarter valued at about $1,079,000.

About Fermi

Fermi's mission is to power the artificial intelligence (“AI”) needs of tomorrow. We are an advanced energy and hyperscaler development company purpose-built for the AI era. Our mission is to deliver up to 11 gigawatts (“GW”) of low-carbon, HyperRedundant™, and on-demand power directly to the world's most compute-intensive businesses with 1.1 GW of power projected to be online by the end of 2026. We have entered into a long-term lease on a site large enough to simultaneously house the next three largest data center campuses by square footage currently in existence.

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