Investors Purchase High Volume of Fermi Put Options (NASDAQ:FRMI)

Fermi Inc. (NASDAQ:FRMI) saw some unusual options trading on Monday. Stock investors purchased 59,668 put options on the company. This is an increase of 46% compared to the typical volume of 40,900 put options.

Fermi Price Performance

Shares of NASDAQ:FRMI traded up $0.97 during midday trading on Wednesday, reaching $8.85. The company’s stock had a trading volume of 27,552,181 shares, compared to its average volume of 12,888,626. Fermi has a fifty-two week low of $4.47 and a fifty-two week high of $36.99. The company has a market capitalization of $5.64 billion and a P/E ratio of -7.82. The business’s fifty day simple moving average is $5.93 and its 200-day simple moving average is $8.21.

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

Insider Activity at Fermi

In other Fermi news, CFO Miles E. Everson sold 427,004 shares of Fermi stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $4.58, for a total transaction of $1,955,678.32. Following the completion of the transaction, the chief financial officer directly owned 9,969,791 shares of the company’s stock, valued at approximately $45,661,642.78. This trade represents a 4.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Mesut Uzman sold 79,509 shares of Fermi stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $6.31, for a total value of $501,701.79. Following the transaction, the insider directly owned 670,491 shares of the company’s stock, valued at approximately $4,230,798.21. The trade was a 10.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 13,593,748 shares of company stock valued at $68,803,933.

Institutional Trading of Fermi

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Weiss Asset Management LP increased its position in Fermi by 431.6% in the first quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company’s stock worth $14,104,000 after purchasing an additional 1,960,764 shares during the period. Balyasny Asset Management L.P. acquired a new stake in Fermi in the fourth quarter worth about $16,549,000. M&G PLC acquired a new stake in Fermi in the fourth quarter worth about $14,443,000. Renaissance Technologies LLC increased its position in Fermi by 311.3% in the first quarter. Renaissance Technologies LLC now owns 1,403,700 shares of the company’s stock worth $8,198,000 after purchasing an additional 1,062,400 shares during the period. Finally, Nuveen LLC acquired a new stake in Fermi in the fourth quarter worth about $11,067,000.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on FRMI shares. Cantor Fitzgerald started coverage on Fermi in a research note on Thursday, April 9th. They issued an “overweight” rating and a $8.00 target price for the company. Weiss Ratings restated a “sell (e+)” rating on shares of Fermi in a research note on Monday, March 23rd. Wall Street Zen lowered Fermi from a “hold” rating to a “sell” rating in a research note on Sunday, May 10th. UBS Group lowered Fermi from a “buy” rating to a “neutral” rating and set a $6.00 target price for the company. in a research note on Tuesday, May 5th. Finally, Evercore lowered Fermi from an “outperform” rating to an “in-line” rating and set a $11.00 target price for the company. in a research note on Friday, May 15th. Two research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Fermi has an average rating of “Moderate Buy” and a consensus target price of $23.78.

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.