Traders Purchase Large Volume of Put Options on Fermi (NASDAQ:FRMI)

Fermi Inc. (NASDAQ:FRMI) was the target of unusually large options trading on Monday. Stock traders acquired 59,668 put options on the company. This represents an increase of approximately 46% compared to the typical daily volume of 40,900 put options.

Fermi Price Performance

FRMI opened at $7.48 on Tuesday. The business’s 50-day moving average is $5.88 and its two-hundred day moving average is $8.26. Fermi has a 1 year low of $4.47 and a 1 year high of $36.99. The firm has a market capitalization of $4.77 billion and a PE ratio of -6.56.

Fermi (NASDAQ:FRMI) last posted its earnings results on Thursday, May 14th. The company reported ($0.30) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.25). As a group, sell-side analysts expect that Fermi will post 0.4 EPS for the current year.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. Evercore lowered Fermi from an “outperform” rating to an “in-line” rating and set a $11.00 price target on the stock. in a research note on Friday, May 15th. 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 price target on the stock. in a research note on Tuesday, May 5th. Cantor Fitzgerald assumed coverage on Fermi in a research note on Thursday, April 9th. They set an “overweight” rating and a $8.00 price target on the stock. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Fermi in a research note on Monday, March 23rd. Two equities 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 issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $23.78.

Insiders Place Their Bets

In other news, insider Charles Lynn Hamilton sold 398,140 shares of the firm’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 $1,823,481.20. Following the transaction, the insider owned 5,525,910 shares in the company, valued at approximately $25,308,667.80. This trade represents a 6.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, major shareholder Griffin Perry sold 2,000,000 shares of the firm’s stock in a transaction on Tuesday, March 31st. The shares were sold at an average price of $5.54, for a total value of $11,080,000.00. Following the transaction, the insider owned 60,946,450 shares in the company, valued at approximately $337,643,333. This represents a 3.18% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 13,593,748 shares of company stock valued at $68,803,933.

Institutional Investors Weigh In On Fermi

Several institutional investors have recently added to or reduced their stakes in FRMI. ORG Wealth Partners LLC acquired a new stake in Fermi in the fourth quarter worth about $151,000. Nisa Investment Advisors LLC acquired a new stake in shares of Fermi during the fourth quarter worth about $423,000. Prime Capital Investment Advisors LLC acquired a new stake in shares of Fermi during the fourth quarter worth about $84,000. Choreo LLC acquired a new stake in shares of Fermi during the fourth quarter worth about $98,000. Finally, Aspect Partners LLC acquired a new stake in shares of Fermi during the fourth quarter worth about $38,000.

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.