Fermi (NASDAQ:FRMI) Shares Gap Down After Earnings Miss

Fermi Inc. (NASDAQ:FRMI)’s stock price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $7.37, but opened at $6.66. Fermi shares last traded at $6.9110, with a volume of 3,395,591 shares traded.

The company reported ($0.30) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.25).

More Fermi News

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Fermi said it is progressing toward a binding tenant agreement within the next 90 days and expects a 5 GW permit by Q4, reinforcing the bull case that its AI power-campus strategy is moving from concept toward commercialization. Fermi outlines 90-day plan targeting a binding tenant agreement while expecting 5 GW permit by Q4
• Positive Sentiment: In its Q1 update, Fermi highlighted over 2 GW of power generation secured, roughly 11 GW of permitted capacity advancing at Project Matador, and about $785 million in new equipment financing, all of which suggest meaningful project momentum and improved funding visibility. Fermi Inc. Outlines Fermi 2.0 Strategic Evolution and Reports First Quarter 2026 Financial Results
• Positive Sentiment: Unusually large call-option buying and elevated trading volume point to strong speculative interest, which may be amplifying the stock’s move as traders bet on further upside. Fermi jumps as Q1 update highlights financing progress and power-campus milestones
• Positive Sentiment: Fermi’s governance changes, including new bylaws meant to strengthen shareholder protections, may be viewed positively by investors following recent leadership disputes. Fermi Board Amends Bylaws to Protect Interests of Shareholders
• Neutral Sentiment: Broker coverage remains mixed, with Evercore downgrading Fermi from “outperform” to “in-line” and setting an $11 price target, while other brokerage summaries still show an overall “Moderate Buy” stance. Fermi Inc. Receives Average Recommendation of Moderate Buy from Brokerages
• Negative Sentiment: The company reported a first-quarter loss of about $189 million, missing earnings expectations, underscoring that Fermi is still burning cash as it invests heavily in expansion. Fermi posts $189 million first-quarter loss as project investment accelerates
• Negative Sentiment: Ongoing governance conflict with the ousted CEO and efforts to block a shareholder meeting continue to create overhang and headline risk for the stock. Fermi Can’t Stop Shareholder Meeting Planned by Ousted CEO

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the stock. Weiss Ratings reiterated a “sell (e+)” rating on shares of Fermi in a research report on Monday, March 23rd. Evercore cut shares of Fermi from an “outperform” rating to an “in-line” rating and set a $11.00 target price on the stock. in a research note on Friday. Citigroup began coverage on shares of Fermi in a report on Monday, February 9th. They set an “outperform” rating for the company. Texas Capital raised Fermi to a “strong-buy” rating in a report on Tuesday, January 20th. Finally, Cantor Fitzgerald started coverage on Fermi in a research report on Thursday, April 9th. They set an “overweight” rating and a $8.00 price objective on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Fermi currently has a consensus rating of “Moderate Buy” and a consensus target price of $23.78.

Insider Activity

In other news, major shareholder Griffin Perry sold 2,000,000 shares of the business’s stock in a transaction dated Tuesday, March 31st. The stock was sold at an average price of $5.54, for a total value of $11,080,000.00. Following the transaction, the insider directly owned 60,946,450 shares of the company’s stock, valued at $337,643,333. The trade was a 3.18% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Blanes Jacobo Ortiz sold 427,363 shares of the business’s stock in a transaction that occurred on Thursday, April 9th. The shares were 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 in the company, valued at approximately $25,048,441.36. This trade represents a 7.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 13,435,207 shares of company stock worth $67,803,539.

Institutional Investors Weigh In On Fermi

Hedge funds and other institutional investors have recently made changes to their positions in the business. Balyasny Asset Management L.P. bought a new stake in Fermi during the 4th quarter worth approximately $16,549,000. M&G PLC purchased a new position in shares of Fermi during the fourth quarter valued at approximately $14,443,000. Renaissance Technologies LLC boosted its position in shares of Fermi by 311.3% during the first quarter. Renaissance Technologies LLC now owns 1,403,700 shares of the company’s stock valued at $8,198,000 after buying an additional 1,062,400 shares during the last quarter. Nuveen LLC bought a new stake in Fermi during the fourth quarter worth $11,067,000. Finally, Millennium Management LLC purchased a new stake in Fermi in the 4th quarter valued at $10,871,000.

Fermi Trading Down 4.5%

The business has a 50-day moving average of $6.27 and a 200 day moving average of $10.68. The firm has a market capitalization of $4.49 billion and a PE ratio of -8.38.

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.