Fermi (NASDAQ:FRMI) Stock Price Up 26.7% – Time to Buy?

Shares of Fermi Inc. (NASDAQ:FRMI) were up 26.7% during mid-day trading on Friday. The company traded as high as $2.92 and last traded at $2.61. Approximately 72,322,466 shares traded hands during trading, an increase of 326% from the average session volume of 16,996,029 shares. The stock had previously closed at $2.06.

More Fermi News

Here’s some of the latest news about FRMI:

• Positive Sentiment: An undisclosed, investment-grade hyperscaler agreed to commit $200 million toward 600 MW at Project Matador, and Fermi secured a separate $15 million agreement for early construction and site-development work. The announcements offer a potential path to advancing the project and helped support the shares. Barron’s article
• Positive Sentiment: Management’s earnings call pointed to hyperscaler growth opportunities, while the company said it maintained its Texas Tech partnership. TipRanks article
• Negative Sentiment: Fermi reported a third-quarter loss of $0.22 per share, wider than analyst estimates of roughly $0.07–$0.08. The earnings miss adds pressure as the company works to turn its projects into results. MarketScreener article

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on FRMI shares. Cantor Fitzgerald lowered their price target on shares of Fermi from $12.00 to $8.00 and set an “overweight” rating for the company in a research report on Friday, October 16th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Fermi in a research report on Thursday. Finally, Mizuho reduced their target price on shares of Fermi from $27.00 to $11.00 and set an “outperform” rating for the company in a research note on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $13.83.

Fermi Stock Performance

The company has a fifty day moving average price of $3.63 and a two-hundred day moving average price of $6.16. The company has a market cap of $1.66 billion and a P/E ratio of -2.19.

Fermi (NASDAQ:FRMI) last released its earnings results on Thursday, November 12th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.15). Research analysts anticipate that Fermi Inc. will post -0.33 EPS for the current year.

Insider Activity

In related news, major shareholder Toby Neugebauer sold 5,000,000 shares of the firm’s stock in a transaction dated Thursday, November 5th. The shares were sold at an average price of $1.52, for a total value of $7,600,000.00. Following the completion of the sale, the insider directly owned 84,813,010 shares in the company, valued at approximately $128,915,775.20. This trade represents a 5.57% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Over the last quarter, insiders have sold 12,125,749 shares of company stock valued at $28,639,969. 2.83% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Fermi

Several hedge funds have recently added to or reduced their stakes in FRMI. BlackRock Inc. acquired a new stake in shares of Fermi during the 2nd quarter worth about $38,499,000. BlueCrest Capital Management Ltd bought a new stake in shares of Fermi in the second quarter valued at approximately $33,276,000. Ratan Capital Management LP acquired a new stake in shares of Fermi during the 2nd quarter worth $19,774,000. State Street Corp grew its stake in Fermi by 49.2% during the third quarter. State Street Corp now owns 6,311,025 shares of the company’s stock worth $26,569,000 after buying an additional 2,081,579 shares in the last quarter. Finally, Weiss Asset Management LP boosted its position in shares of Fermi by 431.6% during the 1st quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company’s stock worth $14,104,000 after acquiring an additional 1,960,764 shares in the last quarter.

About Fermi

Fermi Inc. develops energy and data-center infrastructure intended to support artificial intelligence and other high-performance computing needs. Its business centers on planning and building integrated campuses that pair large-scale power resources with data-center facilities. The company’s flagship development is Project Matador, a planned campus in the Texas Panhandle near Amarillo. The project is designed to combine data centers with a mix of power-generation and energy-storage resources; it remains a development project rather than an established portfolio of operating facilities.