Fermi (NASDAQ:FRMI) Stock Price Down 15.9% on Insider Selling

Fermi Inc. (NASDAQ:FRMI)’s share price dropped 15.9% during mid-day trading on Thursday after an insider sold shares in the company. The company traded as low as $1.44 and last traded at $1.53. 41,370,481 shares traded hands during mid-day trading, an increase of 155% from the average daily volume of 16,228,023 shares. The stock had previously closed at $1.82.

Specifically, major shareholder Toby Neugebauer sold 5,000,000 shares of Fermi stock in a transaction that occurred on Thursday, November 5th. The shares were sold at an average price of $1.52, for a total transaction of $7,600,000.00. Following the sale, the insider owned 84,813,010 shares in the company, valued at $128,915,775.20. This trade represents a 5.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, major shareholder Toby Neugebauer sold 94,000 shares of the company’s stock in a transaction on Wednesday, November 4th. The stock was sold at an average price of $1.99, for a total transaction of $187,060.00. Following the transaction, the insider owned 89,813,010 shares of the company’s stock, valued at approximately $178,727,889.90. This represents a 0.10% decrease in their position. The SEC filing for this sale provides additional information. In related news, major shareholder Toby Neugebauer sold 2,563,800 shares of the company’s stock in a transaction on Tuesday, November 3rd. The shares were sold at an average price of $2.04, for a total transaction of $5,230,152.00. Following the completion of the transaction, the insider owned 42,077,276 shares in the company, valued at approximately $85,837,643.04. This represents a 5.74% 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 hyperlink.

Analysts Set New Price Targets

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

Key Fermi News

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Neugebauer argued that shareholders, markets and Texas voters have rejected the board’s approach and pushed for Fermi to be sold. The prospect of a sale could offer a path to value, and coverage reported that FRMI shares rose amid the comments. No buyer or transaction terms were announced. Article: Neugebauer calls for Fermi sale
• Neutral Sentiment: Brokerage coverage describes the consensus rating for Fermi as “Moderate Buy,” reflecting existing analyst views rather than a clearly identified new upgrade in the latest reports. Article: Fermi rated Moderate Buy
• Negative Sentiment: Neugebauer disclosed selling 5 million shares on Nov. 5 and 94,000 shares on Nov. 4; another report also cited a sale of about 2.56 million shares on Nov. 3. Although he remains a major shareholder, the sales could weigh on sentiment amid the company’s boardroom conflict. Article: Neugebauer share sales

Fermi Trading Up 2.6%

The business has a 50-day moving average price of $3.88 and a 200 day moving average price of $6.31. The stock has a market capitalization of $1.01 billion and a P/E ratio of -1.33.

Fermi (NASDAQ:FRMI) last announced its quarterly earnings results on Thursday, August 13th. The company reported ($0.04) earnings per share for the quarter, topping the consensus estimate of ($0.06) by $0.02. During the same quarter in the prior year, the firm posted ($0.02) earnings per share. On average, sell-side analysts predict that Fermi Inc. will post -0.33 earnings per share for the current fiscal year.

Institutional Trading of Fermi

Hedge funds have recently made changes to their positions in the business. Integrated Wealth Concepts LLC bought a new position in shares of Fermi in the 2nd quarter valued at about $41,000. NewEdge Advisors LLC purchased a new stake in Fermi during the first quarter valued at approximately $54,000. SteelPeak Wealth LLC purchased a new stake in Fermi during the third quarter valued at approximately $42,000. Farther Finance Advisors LLC lifted its stake in shares of Fermi by 139.1% in the 3rd quarter. Farther Finance Advisors LLC now owns 10,456 shares of the company’s stock valued at $44,000 after purchasing an additional 6,083 shares during the last quarter. Finally, Financial Management Professionals Inc. bought a new stake in shares of Fermi in the 2nd quarter valued at approximately $104,000.

Fermi Company Profile

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.