Fermi (NASDAQ:FRMI) Stock Price Down 8.8% – Here’s What Happened

Fermi Inc. (NASDAQ:FRMI) traded down 8.8% on Wednesday . The stock traded as low as $8.55 and last traded at $8.66. 2,165,841 shares changed hands during mid-day trading, a decline of 71% from the average session volume of 7,538,365 shares. The stock had previously closed at $9.50.

Fermi News Roundup

Here are the key news stories impacting Fermi this week:

• Negative Sentiment: Anchor‑tenant cancellation: Fermi announced termination of a $150 million customer agreement for Project Matador, undermining a key near‑term funding expectation and prompting at least one securities class action tied directly to that disclosure. FRMI BREAKING NEWS
• Negative Sentiment: Proposed class action(s) filed: Hagens Berman says a securities class action has been filed alleging the IPO and subsequent disclosures were misleading, directly tying litigation risk to the Project Matador funding shortfall. Fermi Inc. (FRMI) Slapped With Securities Class Action
• Negative Sentiment: More plaintiff firms mobilizing: Robbins Geller, Kirby McInerney, Glancy Prongay & Murray and others have announced investor alerts or filings seeking lead plaintiffs for class actions alleging misstatements about tenant demand and project funding. Expect continued legal headlines and potential discovery/expense risk. Robbins Geller Investor Alert
• Negative Sentiment: Additional suits filed: Kirby McInerney and Glancy Prongay & Murray (among others) have either filed lawsuits or issued notices encouraging shareholders to participate, increasing the number of potential claims and legal coordination efforts. Kirby McInerney Filing Glancy Prongay & Murray Filing
• Negative Sentiment: Multiple investigations and solicitations: Several national plaintiff firms (Faruqi, Bronstein Gewirtz, Frank R. Cruz, DJS, Schall, Shareholders Foundation, etc.) are investigating and soliciting investors — increases probability of coordinated litigation, higher legal costs, and distraction for management. PR Newswire – Robbins Geller

Wall Street Analysts Forecast Growth

FRMI has been the subject of several recent research reports. Redburn Partners set a $31.00 price objective on shares of Fermi in a research note on Monday, October 27th. Rothschild & Co Redburn initiated coverage on shares of Fermi in a research report on Monday, October 27th. They issued a “buy” rating and a $31.00 price target for the company. Cantor Fitzgerald restated an “overweight” rating on shares of Fermi in a research note on Wednesday, November 12th. Macquarie reiterated an “outperform” rating and issued a $35.00 price objective on shares of Fermi in a research note on Wednesday, November 12th. Finally, Zacks Research upgraded Fermi to a “hold” rating in a report on Tuesday, October 28th. Two investment analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Fermi presently has an average rating of “Moderate Buy” and a consensus price target of $31.56.

Fermi Price Performance

The stock has a market cap of $5.18 billion and a price-to-earnings ratio of -10.05. The firm’s fifty day simple moving average is $15.43.

Fermi (NASDAQ:FRMI) last issued its earnings results on Monday, November 10th. The company reported ($0.84) EPS for the quarter.

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.