Fermi (NASDAQ:FRMI) Shares Down 15.9% After Insider Selling

Fermi Inc. (NASDAQ:FRMI) shares were down 15.9% during mid-day trading on Thursday following insider selling activity. The stock traded as low as $1.44 and last traded at $1.53. Approximately 41,370,481 shares traded hands during 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 the stock in a transaction that occurred on Thursday, November 5th. The stock was sold at an average price of $1.52, for a total value of $7,600,000.00. Following the completion of the sale, the insider owned 84,813,010 shares in the company, valued at approximately $128,915,775.20. This trade represents a 5.57% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, major shareholder Toby Neugebauer sold 94,000 shares of the company’s stock in a transaction that occurred on Wednesday, November 4th. The stock was sold at an average price of $1.99, for a total value of $187,060.00. Following the transaction, the insider owned 89,813,010 shares in the company, valued at $178,727,889.90. This trade represents a 0.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In other news, major shareholder Toby Neugebauer sold 2,563,800 shares of the business’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 sale, the insider owned 42,077,276 shares in the company, valued at approximately $85,837,643.04. The trade was a 5.74% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website.

Wall Street Analysts Forecast Growth

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

Fermi News Roundup

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 Stock Performance

The business’s fifty day moving average price is $3.88 and its two-hundred day moving average price is $6.31. The stock has a market capitalization of $1.01 billion and a P/E ratio of -1.33.

Fermi (NASDAQ:FRMI) last posted its quarterly earnings results on Thursday, August 13th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.02. During the same period in the prior year, the company posted ($0.02) EPS. As a group, analysts forecast that Fermi Inc. will post -0.33 earnings per share for the current year.

Institutional Trading of Fermi

Institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. acquired a new position in shares of Fermi in the 2nd quarter valued at about $38,499,000. Value Aligned Research Advisors LLC purchased a new position in shares of Fermi during the 2nd quarter valued at approximately $12,531,000. Philadelphia Financial Management of San Francisco LLC acquired a new position in shares of Fermi in the 2nd quarter valued at $3,893,000. Alyeska Investment Group L.P. boosted its holdings in Fermi by 82.4% during the second quarter. Alyeska Investment Group L.P. now owns 2,886,836 shares of the company’s stock worth $26,443,000 after buying an additional 1,303,979 shares in the last quarter. Finally, Sequoia Financial Advisors LLC purchased a new position in Fermi in the second quarter valued at $1,845,000.

About Fermi

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.