Fermi (NASDAQ:FRMI) Stock Price Up 17.5% – What’s Next?

Fermi Inc. (NASDAQ:FRMI) shares rose 17.5% during mid-day trading on Wednesday. The stock traded as high as $1.95 and last traded at $1.81. Approximately 29,535,875 shares changed hands during trading, an increase of 80% from the average daily volume of 16,424,781 shares. The stock had previously closed at $1.54.

Key Stories Impacting Fermi

Investors following FRMI have been watching these stories:

• Negative Sentiment: The new commitment only partly offsets the termination of a previously announced $6.5 billion deal, a major setback to Fermi’s development plans. MSN 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
• Negative Sentiment: A Seeking Alpha analyst downgraded the stock, arguing that its outlook remains too speculative to justify optimism—highlighting the execution risks behind the growth story. Seeking Alpha article

Analysts Set New Price Targets

FRMI has been the topic of a number of recent analyst reports. Cantor Fitzgerald cut their price objective on Fermi from $12.00 to $8.00 and set an “overweight” rating on the stock in a research note on Friday, October 16th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Fermi in a report on Thursday. Finally, Mizuho dropped their price target on shares of Fermi from $27.00 to $11.00 and set an “outperform” rating on the stock in a research report on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $13.83.

Fermi Trading Up 26.7%

The firm has a market cap of $1.67 billion and a price-to-earnings ratio of -2.21. The firm has a 50-day moving average of $3.63 and a two-hundred day moving average of $6.16.

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 analysts’ consensus estimates of ($0.07) by ($0.15). As a group, equities analysts anticipate that Fermi Inc. will post -0.33 EPS for the current year.

Insider Buying and Selling at Fermi

In other news, major shareholder Toby Neugebauer sold 5,000,000 shares of the firm’s stock in a transaction on 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 sale, the insider owned 84,813,010 shares in the company, valued at approximately $128,915,775.20. This trade represents a 5.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders sold 12,125,749 shares of company stock valued at $28,639,969 over the last three months. 2.83% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Fermi

Several large investors have recently bought and sold shares of FRMI. BlackRock Inc. acquired a new stake in Fermi in the 2nd quarter worth $38,499,000. BlueCrest Capital Management Ltd acquired a new position in shares of Fermi during the second quarter valued at about $33,276,000. Ratan Capital Management LP acquired a new position in shares of Fermi during the second quarter valued at about $19,774,000. State Street Corp lifted its stake in shares of Fermi by 49.2% in the third quarter. State Street Corp now owns 6,311,025 shares of the company’s stock valued at $26,569,000 after buying an additional 2,081,579 shares during the period. Finally, Weiss Asset Management LP grew its position in Fermi by 431.6% during the first quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company’s stock worth $14,104,000 after buying 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.