Fermi (NASDAQ:FRMI) Stock Price Down 15.9% – Time to Sell?

Fermi Inc. (NASDAQ:FRMI)’s share price dropped 15.9% on Thursday. The company traded as low as $1.44 and last traded at $1.53. 41,370,481 shares traded hands during mid-day trading, an increase of 155% from the average session volume of 16,228,023 shares. The stock had previously closed at $1.82.

Wall Street Analysts Forecast Growth

FRMI has been the topic of several recent research reports. Mizuho lowered their price target on shares of Fermi from $27.00 to $11.00 and set an “outperform” rating on the stock in a research note on Tuesday, July 28th. Cantor Fitzgerald reduced their price objective 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, Weiss Ratings downgraded shares of Fermi from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, August 14th. One investment 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 assigned a Sell rating to the company. Based on data from MarketBeat.com, Fermi has a consensus rating of “Moderate Buy” and a consensus target price of $16.86.

Fermi Price Performance

The stock has a market capitalization of $981.13 million and a P/E ratio of -1.30. The company’s 50-day simple moving average is $4.03 and its 200-day simple moving average is $6.40.

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

Insider Activity

In related 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 value of $1,279,076.96. Following the completion of the sale, 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 sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Over the last quarter, 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.

Hedge Funds Weigh In On Fermi

A number of hedge funds and other institutional investors have recently bought and sold shares of FRMI. BlackRock Inc. acquired a new position in Fermi during the second quarter worth approximately $38,499,000. BlueCrest Capital Management Ltd bought a new stake in Fermi in the second quarter valued at approximately $33,276,000. Ratan Capital Management LP acquired a new stake in shares of Fermi in the second quarter valued at approximately $19,774,000. Weiss Asset Management LP lifted its position 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 buying an additional 1,960,764 shares during the last quarter. Finally, Bank of America Corp DE bought a new position in shares of Fermi during the 2nd quarter worth approximately $17,859,000.

About Fermi

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.