Fermi (NASDAQ:FRMI) Stock Falls 7.3% – Should You Sell?

Fermi Inc. (NASDAQ:FRMI) traded down 7.3% on Tuesday. The company traded as low as $2.00 and last traded at $2.04. 30,516,479 shares were traded during mid-day trading, an increase of 90% from the average daily volume of 16,023,965 shares. The stock had previously closed at $2.20.

Analyst Upgrades and Downgrades

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

Fermi Trading Down 7.3%

The company has a market capitalization of $1.31 billion and a price-to-earnings ratio of -1.73. The stock’s 50 day moving average price is $4.19 and its 200 day moving average price is $6.47.

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

Insider Activity at Fermi

In other news, major shareholder Toby Neugebauer sold 2,750,000 shares of the firm’s stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $3.73, for a total value of $10,257,500.00. Following the completion of the transaction, the insider owned 91,609,659 shares in the company, valued at $341,704,028.07. This trade represents a 2.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders have sold 4,467,949 shares of company stock valued at $15,622,757 over the last quarter. 2.83% of the stock is owned by insiders.

Hedge Funds Weigh In On Fermi

Hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in shares of Fermi in the second quarter worth approximately $38,499,000. BlueCrest Capital Management Ltd purchased a new stake in Fermi during the 2nd quarter worth approximately $33,276,000. Alyeska Investment Group L.P. increased its holdings in shares of Fermi by 82.4% in the second quarter. Alyeska Investment Group L.P. now owns 2,886,836 shares of the company’s stock valued at $26,443,000 after purchasing an additional 1,303,979 shares during the period. Ratan Capital Management LP purchased a new stake in shares of Fermi in the 2nd quarter valued at $19,774,000. Finally, Bank of America Corp DE acquired a new stake in Fermi during the 2nd quarter worth about $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.