Fermi (NASDAQ:FRMI) Stock Falls 8.7% – Should You Sell?

Fermi Inc. (NASDAQ:FRMI) shares dropped 8.7% during trading on Friday. The stock traded as low as $2.52 and last traded at $2.61. Approximately 15,614,555 shares changed hands during trading, a decline of 2% from the average daily volume of 15,915,947 shares. The stock had previously closed at $2.86.

Analyst Ratings Changes

A number of equities analysts recently weighed in on FRMI shares. Weiss Ratings lowered shares of Fermi from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Friday, August 14th. Cantor Fitzgerald reduced their target price on shares of Fermi from $12.00 to $8.00 and set an “overweight” rating for the company in a research note on Friday, October 16th. Finally, Mizuho lowered their target price on shares of Fermi from $27.00 to $11.00 and set an “outperform” rating on the stock in a report on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Fermi presently has an average rating of “Moderate Buy” and a consensus price target of $16.86.

Fermi Stock Performance

The stock’s fifty day moving average price is $4.33 and its 200-day moving average price is $6.55. The firm has a market cap of $1.67 billion and a PE ratio of -2.21.

Fermi (NASDAQ:FRMI) last announced its quarterly earnings results on Thursday, August 13th. The company reported ($0.04) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.06) by $0.02. During the same period in the previous year, the firm posted ($0.02) earnings per share. Sell-side analysts forecast that Fermi Inc. will post -0.33 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Fermi news, major shareholder Toby Neugebauer sold 420,749 shares of the firm’s stock in a transaction dated Tuesday, October 20th. The shares were sold at an average price of $3.04, for a total transaction of $1,279,076.96. Following the completion of the transaction, the insider directly owned 91,188,910 shares in the company, valued at approximately $277,214,286.40. This trade represents a 0.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Over the last 90 days, insiders have sold 4,467,949 shares of company stock valued at $15,622,757. 2.83% of the stock is currently owned by corporate insiders.

Institutional Trading of Fermi

Several large investors have recently modified their holdings of FRMI. Sumitomo Mitsui Trust Group Inc. lifted its stake in Fermi by 721.9% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 276,563 shares of the company’s stock valued at $1,164,000 after buying an additional 242,912 shares in the last quarter. Vise Technologies Inc. purchased a new position in Fermi during the third quarter worth $77,000. Choreo LLC increased its position in Fermi by 45.0% during the third quarter. Choreo LLC now owns 187,327 shares of the company’s stock worth $789,000 after buying an additional 58,135 shares in the last quarter. Mad River Investors raised its holdings in shares of Fermi by 2,828.5% in the third quarter. Mad River Investors now owns 483,200 shares of the company’s stock worth $2,034,000 after acquiring an additional 466,700 shares during the last quarter. Finally, Asset Management One Co. Ltd. lifted its position in shares of Fermi by 850.1% in the third quarter. Asset Management One Co. Ltd. now owns 395,754 shares of the company’s stock valued at $1,666,000 after acquiring an additional 354,100 shares in the last quarter.

Fermi Company Profile

Fermi, Inc (NASDAQ: FRMI) is an energy and infrastructure company focused on developing large-scale power and data center facilities for artificial intelligence and other high-performance computing applications. Its business model centers on integrating electricity generation, energy storage and data center infrastructure within a single campus.

The company’s principal development is Project Matador, a planned energy and data center campus in the Texas Panhandle. The project is designed to use a mix of power sources, including nuclear energy, natural gas, solar generation and battery storage, with the goal of providing reliable electricity for data center customers.

Fermi’s activities are currently concentrated in the United States, particularly Texas.