Fermi (NASDAQ:FRMI) Downgraded to “In-Line” Rating by Evercore

Evercore lowered shares of Fermi (NASDAQ:FRMI) from an outperform rating to an in-line rating in a research report released on Friday, Marketbeat.com reports. The firm currently has $11.00 price target on the stock.

A number of other research analysts have also weighed in on the stock. Citizens Jmp began coverage on shares of Fermi in a research note on Monday, February 9th. They issued a “market outperform” rating and a $30.00 price objective on the stock. UBS Group cut shares of Fermi from a “buy” rating to a “neutral” rating and set a $6.00 price target on the stock. in a report on Tuesday, May 5th. Wall Street Zen lowered shares of Fermi from a “hold” rating to a “sell” rating in a research report on Sunday, May 10th. Cantor Fitzgerald started coverage on shares of Fermi in a research report on Thursday, April 9th. They issued an “overweight” rating and a $8.00 price objective on the stock. Finally, Citigroup started coverage on shares of Fermi in a research note on Monday, February 9th. They set an “outperform” rating on the stock. Two 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 stock. According to MarketBeat.com, Fermi has a consensus rating of “Moderate Buy” and a consensus price target of $23.78.

Fermi Stock Down 11.7%

FRMI opened at $6.51 on Friday. The stock has a market cap of $4.15 billion and a PE ratio of -7.75. The company has a fifty day moving average of $6.22 and a 200-day moving average of $10.65. Fermi has a twelve month low of $4.47 and a twelve month high of $36.99.

Fermi (NASDAQ:FRMI) last posted its quarterly earnings results on Thursday, May 14th. The company reported ($0.30) EPS for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.25). Sell-side analysts anticipate that Fermi will post 0.4 EPS for the current fiscal year.

Insider Activity

In other news, major shareholder Griffin Perry sold 9,000,000 shares of the company’s stock in a transaction on Monday, March 30th. The shares were sold at an average price of $5.02, for a total value of $45,180,000.00. Following the transaction, the insider owned 62,946,450 shares of the company’s stock, valued at approximately $315,991,179. This represents a 12.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Miles E. Everson sold 427,004 shares of the company’s 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 in the company, valued at approximately $45,661,642.78. The trade was a 4.11% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 13,435,207 shares of company stock worth $67,803,539.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. SummitTX Capital L.P. purchased a new stake in shares of Fermi in the 1st quarter valued at $648,000. Weiss Asset Management LP raised its holdings in Fermi by 431.6% during the 1st quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company’s stock valued at $14,104,000 after buying an additional 1,960,764 shares during the last quarter. Renaissance Technologies LLC raised its holdings in Fermi by 311.3% in the 1st 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 in the last quarter. Arrowstreet Capital Limited Partnership bought a new position in Fermi in the 1st quarter worth $527,000. Finally, Cetera Investment Advisers raised its holdings in Fermi by 3,262.3% in the 1st quarter. Cetera Investment Advisers now owns 1,201,098 shares of the company’s stock worth $7,014,000 after purchasing an additional 1,165,376 shares in the last quarter.

Key Stories Impacting Fermi

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Investors reacted favorably to Fermi’s “Fermi 2.0” update, which highlighted progress on its AI power-campus strategy, more than 2 GW of power generation secured, roughly 11 GW of permitted capacity at Project Matador, and about $785 million in new equipment financing. Article Title
• Positive Sentiment: The company said it is targeting a binding tenant agreement within 90 days and expects a 5 GW permit by Q4, reinforcing the bull case that future commercialization could unlock value. Article Title
• Neutral Sentiment: Brokerage coverage remained mixed: one report said Fermi still has problems to sort out, while another noted the stock still carries an average “Moderate Buy” recommendation. Article Title Article Title
• Neutral Sentiment: Trading activity was unusually strong, including heavy call-option buying, suggesting speculative interest and possible short-covering may have amplified the move. Article Title
• Negative Sentiment: Fermi reported a wider-than-expected Q1 loss of $0.30 per share versus the $0.05 estimate, and headlines emphasized that project investment is accelerating losses. Article Title Article Title
• Negative Sentiment: Evercore downgraded Fermi from “Outperform” to “In-Line,” signaling a more cautious near-term view even though the firm still sees upside to its $11 target. Article Title
• Negative Sentiment: Management turmoil and governance disputes remain a drag, with reports on an ex-CEO feud, a contested shareholder meeting, and new bylaws that tighten board-change approval requirements. Article Title Article Title

About Fermi

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.