Fermi (NASDAQ:FRMI) Sets New 52-Week Low – Here’s Why

Fermi Inc. (NASDAQ:FRMI) hit a new 52-week low during mid-day trading on Friday. The company traded as low as $4.43 and last traded at $4.55, with a volume of 19341615 shares changing hands. The stock had previously closed at $4.82.

Analysts Set New Price Targets

Several equities research analysts have commented on FRMI shares. Stifel Nicolaus lowered their target price on shares of Fermi from $29.00 to $17.00 and set a “buy” rating for the company in a research note on Tuesday, June 23rd. Weiss Ratings cut shares of Fermi from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Friday, August 14th. Finally, Mizuho decreased their price target on shares of Fermi from $27.00 to $11.00 and set an “outperform” rating for the company in a report on Tuesday, July 28th. Two investment analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $20.67.

Fermi Price Performance

The company has a market cap of $2.89 billion and a price-to-earnings ratio of -3.83. The stock has a 50-day moving average price of $5.74 and a 200 day moving average price of $6.34.

Fermi (NASDAQ:FRMI) last issued its quarterly earnings data on Thursday, August 13th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.06) by $0.02. During the same period last year, the business earned ($0.02) earnings per share. Sell-side analysts expect that Fermi Inc. will post -0.33 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director James Perry sold 863,637 shares of the company’s stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $7.31, for a total value of $6,313,186.47. Following the completion of the transaction, the director owned 15,827,807 shares in the company, valued at $115,701,269.17. This represents a 5.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.

Institutional Investors Weigh In On Fermi

Hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in Fermi in the 2nd quarter worth $38,499,000. BlueCrest Capital Management Ltd acquired a new stake in shares of Fermi in the 2nd quarter valued at about $33,276,000. Ratan Capital Management LP acquired a new stake in shares of Fermi in the 2nd quarter valued at about $19,774,000. Weiss Asset Management LP lifted its holdings in shares of Fermi by 431.6% in the first quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company’s stock valued at $14,104,000 after purchasing an additional 1,960,764 shares in the last quarter. Finally, Bank of America Corp DE acquired a new position in shares of Fermi during the second quarter worth about $17,859,000.

Fermi Company Profile

Fermi Inc is an energy and digital infrastructure company developing large-scale power-generation and data-center facilities to support energy-intensive computing, including artificial intelligence applications. Its business focuses on integrating electricity generation, transmission infrastructure and data-center capacity within dedicated campuses.

The company’s primary development effort is the Fermi America project near Amarillo, Texas, also referred to as Project Matador. The planned campus is intended to use a diversified energy portfolio that may include natural gas, nuclear power, solar generation and battery storage, with the goal of providing reliable electricity for data centers and other high-demand technology users.

Fermi’s operations are currently centered on the United States, particularly Texas.