Fermi (NASDAQ:FRMI) Stock Price Up 13.8% – Still a Buy?

Shares of Fermi Inc. (NASDAQ:FRMI) rose 13.8% during trading on Thursday. The stock traded as high as $2.30 and last traded at $2.06. 86,298,625 shares were traded during mid-day trading, an increase of 415% from the average daily volume of 16,745,449 shares. The stock had previously closed at $1.81.

Wall Street Analyst Weigh In

Several research analysts have weighed in on FRMI shares. Mizuho cut their price target on Fermi from $27.00 to $11.00 and set an “outperform” rating for the company in a report on Tuesday, July 28th. Weiss Ratings cut Fermi from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, August 14th. Finally, Cantor Fitzgerald lowered their price objective on Fermi from $12.00 to $8.00 and set an “overweight” rating for the company in a research report on Friday, October 16th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $13.83.

Fermi Price Performance

The company’s 50-day moving average is $3.68 and its 200-day moving average is $6.20. The firm has a market capitalization of $1.32 billion and a price-to-earnings ratio of -1.75.

Fermi (NASDAQ:FRMI) last issued its quarterly earnings results on Thursday, November 12th. The company reported ($0.22) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.15). Sell-side analysts anticipate that Fermi Inc. will post -0.33 earnings per share for the current year.

Insider Activity

In other news, major shareholder Toby Neugebauer sold 5,000,000 shares of the company’s stock in a transaction on Thursday, November 5th. The stock was sold at an average price of $1.52, for a total transaction of $7,600,000.00. Following the completion of the sale, the insider directly owned 84,813,010 shares in the company, valued at $128,915,775.20. This represents a 5.57% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Over the last three months, insiders have sold 12,125,749 shares of company stock worth $28,639,969. 2.83% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Integrated Wealth Concepts LLC purchased a new stake in Fermi during the second quarter valued at about $41,000. NewEdge Advisors LLC purchased a new position in shares of Fermi in the 1st quarter worth about $54,000. SteelPeak Wealth LLC acquired a new position in shares of Fermi in the 3rd quarter valued at about $42,000. Farther Finance Advisors LLC lifted its stake in shares of Fermi by 139.1% in the 3rd quarter. Farther Finance Advisors LLC now owns 10,456 shares of the company’s stock valued at $44,000 after purchasing an additional 6,083 shares in the last quarter. Finally, Financial Management Professionals Inc. purchased a new stake in shares of Fermi during the 2nd quarter worth about $104,000.

Fermi Company Profile

Fermi Inc. develops energy and data-center infrastructure intended to support artificial intelligence and other high-performance computing needs. Its business centers on planning and building integrated campuses that pair large-scale power resources with data-center facilities. The company’s flagship development is Project Matador, a planned campus in the Texas Panhandle near Amarillo. The project is designed to combine data centers with a mix of power-generation and energy-storage resources; it remains a development project rather than an established portfolio of operating facilities.