Fermi (NASDAQ:FRMI) Trading Down 4.3% – Time to Sell?

Fermi Inc. (NASDAQ:FRMI)’s stock price traded down 4.3% during mid-day trading on Thursday . The company traded as low as $6.48 and last traded at $6.5960. 5,080,176 shares were traded during mid-day trading, a decline of 59% from the average session volume of 12,366,361 shares. The stock had previously closed at $6.89.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Evercore cut 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. Weiss Ratings reissued a “sell (e+)” rating on shares of Fermi in a research note on Monday, March 23rd. Wall Street Zen cut Fermi from a “hold” rating to a “sell” rating in a research note on Sunday, May 10th. UBS Group cut 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, Cantor Fitzgerald assumed 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. Two equities research 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 given a Sell rating to the company. According to data from MarketBeat.com, Fermi has a consensus rating of “Moderate Buy” and an average target price of $23.78.

Fermi Price Performance

The firm has a 50-day moving average price of $5.83 and a two-hundred day moving average price of $8.35. The company has a market capitalization of $4.55 billion and a price-to-earnings ratio of -6.26.

Fermi (NASDAQ:FRMI) last issued its quarterly earnings results on Thursday, May 14th. The company reported ($0.30) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.25). On average, equities analysts predict that Fermi Inc. will post 0.4 EPS for the current year.

Insider Activity

In related news, major shareholder Griffin Perry sold 9,000,000 shares of the stock in a transaction that occurred on Monday, March 30th. The stock was sold at an average price of $5.02, for a total transaction of $45,180,000.00. Following the completion of the transaction, the insider directly 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 sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Miles E. Everson sold 427,004 shares of the 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 $1,955,678.32. Following the transaction, the chief financial officer directly owned 9,969,791 shares of the company’s stock, valued at $45,661,642.78. This trade represents a 4.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 13,593,748 shares of company stock valued at $68,803,933.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Weiss Asset Management LP boosted its position in Fermi by 431.6% during the first quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company’s stock valued at $14,104,000 after purchasing an additional 1,960,764 shares during the last quarter. Balyasny Asset Management L.P. acquired a new position in Fermi during the fourth quarter valued at approximately $16,549,000. M&G PLC bought a new stake in Fermi in the fourth quarter valued at approximately $14,443,000. Renaissance Technologies LLC raised its stake in Fermi by 311.3% in 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 period. Finally, Nuveen LLC bought a new stake in Fermi in the fourth quarter valued at approximately $11,067,000.

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.