Fermi (NASDAQ:FRMI) Shares Gap Up – Should You Buy?

Fermi Inc. (NASDAQ:FRMI) gapped up prior to trading on Thursday . The stock had previously closed at $6.00, but opened at $6.39. Fermi shares last traded at $6.1880, with a volume of 9,863,746 shares traded.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on FRMI. UBS Group cut Fermi from a “buy” rating to a “neutral” rating and set a $6.00 price objective for the company. in a research report on Tuesday, May 5th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Fermi in a research note on Monday, March 23rd. Texas Capital upgraded shares of Fermi to a “strong-buy” rating in a research report on Tuesday, January 20th. Cantor Fitzgerald initiated coverage on shares of Fermi in a report on Thursday, April 9th. They set an “overweight” rating and a $8.00 price objective on the stock. Finally, Wall Street Zen lowered shares of Fermi from a “hold” rating to a “sell” rating in a research report on Sunday. Three equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $26.67.

Fermi Price Performance

The stock has a market cap of $4.63 billion and a price-to-earnings ratio of -8.62. The stock’s 50 day simple moving average is $6.31 and its two-hundred day simple moving average is $10.79.

Fermi (NASDAQ:FRMI) last announced its quarterly earnings data on Thursday, May 14th. The company reported ($0.30) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.25). As a group, analysts predict that Fermi Inc. will post 0.4 earnings per share for the current year.

Insider Buying and Selling at Fermi

In other news, insider Charles Lynn Hamilton sold 398,140 shares of the company’s stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $4.58, for a total value of $1,823,481.20. Following the sale, the insider directly owned 5,525,910 shares in the company, valued at approximately $25,308,667.80. This represents a 6.72% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, COO Blanes Jacobo Ortiz sold 427,363 shares of the stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $4.58, for a total value of $1,957,322.54. Following the completion of the transaction, the chief operating officer directly owned 5,469,092 shares of the company’s stock, valued at approximately $25,048,441.36. The trade was a 7.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 13,435,207 shares of company stock worth $67,803,539 in the last three months.

Institutional Investors Weigh In On Fermi

Institutional investors and hedge funds have recently made changes to their positions in the company. ORG Wealth Partners LLC bought a new stake in shares of Fermi in the 4th quarter worth about $151,000. Nisa Investment Advisors LLC bought a new position in Fermi during the 4th quarter valued at about $423,000. Prime Capital Investment Advisors LLC acquired a new position in Fermi in the fourth quarter valued at about $84,000. Choreo LLC bought a new stake in Fermi during the fourth quarter worth about $98,000. Finally, Aspect Partners LLC acquired a new stake in shares of Fermi during the fourth quarter worth approximately $38,000.

Fermi Company Profile

Fermi’s mission is to power the artificial intelligence (“AI”) needs of tomorrow. We are an advanced energy and hyperscaler development company purpose-built for the AI era. Our mission is to deliver up to 11 gigawatts (“GW”) of low-carbon, HyperRedundant™, and on-demand power directly to the world’s most compute-intensive businesses with 1.1 GW of power projected to be online by the end of 2026. We have entered into a long-term lease on a site large enough to simultaneously house the next three largest data center campuses by square footage currently in existence.