Fermi (NASDAQ:FRMI) Trading Up 19.5% – Time to Buy?

Fermi Inc. (NASDAQ:FRMI)’s share price was up 19.5% during mid-day trading on Wednesday . The stock traded as high as $6.46 and last traded at $6.7180. Approximately 8,951,978 shares were traded during trading, a decline of 25% from the average daily volume of 11,980,362 shares. The stock had previously closed at $5.62.

Analyst Upgrades and Downgrades

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

Fermi Price Performance

The stock has a 50-day moving average of $5.75 and a 200 day moving average of $8.47. The stock has a market capitalization of $4.34 billion and a price-to-earnings ratio of -6.02.

Fermi (NASDAQ:FRMI) last issued its earnings results 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). Sell-side analysts anticipate that Fermi Inc. will post 0.4 earnings per share for the current fiscal year.

Insider Activity

In related news, COO Blanes Jacobo Ortiz sold 427,363 shares of the company’s stock in a transaction 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 sale, the chief operating officer owned 5,469,092 shares in the company, valued at $25,048,441.36. This represents a 7.25% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Mesut Uzman sold 79,509 shares of Fermi stock in a transaction dated 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 owned 670,491 shares in the company, valued at $4,230,798.21. This trade represents a 10.60% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 13,593,748 shares of company stock valued at $68,803,933.

Hedge Funds Weigh In On Fermi

Institutional investors have recently modified their holdings of the business. Leonteq Securities AG bought a new position in shares of Fermi during the 4th quarter valued at about $30,000. PNC Financial Services Group Inc. bought a new position in shares of Fermi during the 4th quarter valued at about $36,000. Aspect Partners LLC bought a new position in shares of Fermi during the 4th quarter valued at about $38,000. SBI Securities Co. Ltd. bought a new position in shares of Fermi during the 4th quarter valued at about $41,000. Finally, NewEdge Advisors LLC bought a new position in shares of Fermi during the 1st quarter valued at about $54,000.

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.