Fermi (NASDAQ:FRMI) Shares Gap Down on Insider Selling

Fermi Inc. (NASDAQ:FRMI) gapped down prior to trading on Friday following insider selling activity. The stock had previously closed at $3.39, but opened at $3.28. Fermi shares last traded at $3.3550, with a volume of 1,608,383 shares traded.

Specifically, major shareholder Toby R. Neugebauer sold 1,297,200 shares of Fermi stock in a transaction on Wednesday, October 14th. The stock was sold at an average price of $3.15, for a total transaction of $4,086,180.00. Following the completion of the transaction, the insider directly owned 43,359,176 shares of the company’s stock, valued at approximately $136,581,404.40. The trade was a 2.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, major shareholder Toby R. Neugebauer sold 2,750,000 shares of the business’s stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $3.73, for a total value of $10,257,500.00. Following the sale, the insider owned 91,609,659 shares in the company, valued at approximately $341,704,028.07. The trade was a 2.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure.

Analyst Ratings Changes

Several analysts have weighed in on FRMI shares. Weiss Ratings lowered Fermi from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, August 14th. Mizuho cut their price target on Fermi from $27.00 to $11.00 and set an “outperform” rating for the company in a research note on Tuesday, July 28th. Cantor Fitzgerald cut their price target on Fermi from $12.00 to $8.00 and set an “overweight” rating for the company in a research note on Friday. Finally, Stifel Nicolaus decreased their price objective on shares of Fermi from $29.00 to $17.00 and set a “buy” rating on the stock in a research report on Tuesday, June 23rd. Two 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’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $20.67.

Key Fermi News

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: AMD support strengthens Project Matador. AMD agreed to provide credit support for Fermi’s 222-megawatt power lease at its Project Matador campus in Amarillo, Texas. The agreement could improve Fermi’s ability to finance construction and adds credibility to its plans to serve AI and cloud-computing demand. Fermi and AMD sign credit support deal for Project Matador
• Neutral Sentiment: Project Matador financing terms were amended. Fermi announced changes to financing terms involving two indirect wholly owned subsidiaries. The update may help the company advance its development plans, but investors may remain focused on the project’s funding requirements, liquidity and execution risks. Fermi amends Project Matador financing terms
• Neutral Sentiment: Cantor Fitzgerald remains bullish but lowered its target. Cantor Fitzgerald cut its Fermi price target from $12 to $8 while maintaining an “overweight” rating. The reduced target reflects a more cautious outlook, although it still implies substantial potential upside from recent trading levels. Fermi analyst rating and price target update
• Negative Sentiment: Major shareholder sales are weighing on sentiment. Toby Neugebauer sold 2.75 million Fermi shares for approximately $10.3 million on October 13 and another 1.30 million shares for about $4.1 million on October 14. Although he still owns a significant stake, the transactions reduce his position by roughly 2.9% each and may raise concerns about investor confidence while adding potential selling pressure. Fermi major shareholder insider selling

Fermi Trading Down 2.5%

The business has a 50 day moving average of $5.02 and a 200-day moving average of $5.97. The stock has a market cap of $2.12 billion and a PE ratio of -2.81.

Fermi (NASDAQ:FRMI) last released its quarterly earnings results on Thursday, August 13th. The company reported ($0.04) earnings per share for the quarter, topping the consensus estimate of ($0.06) by $0.02. During the same period in the previous year, the company posted ($0.02) EPS. On average, equities research analysts anticipate that Fermi Inc. will post -0.33 EPS for the current fiscal year.

Institutional Trading of Fermi

Institutional investors and hedge funds have recently made changes to their positions in the stock. Farther Finance Advisors LLC boosted its stake in shares of Fermi by 139.1% during the third quarter. Farther Finance Advisors LLC now owns 10,456 shares of the company’s stock valued at $44,000 after acquiring an additional 6,083 shares during the last quarter. Sequoia Financial Advisors LLC purchased a new stake in Fermi during the 2nd quarter worth about $1,845,000. Tidal Investments LLC raised its stake in Fermi by 348.2% in the 2nd quarter. Tidal Investments LLC now owns 173,114 shares of the company’s stock valued at $1,586,000 after purchasing an additional 134,486 shares during the last quarter. Whetstone Capital Advisors LLC acquired a new position in Fermi in the 2nd quarter valued at about $12,009,000. Finally, BlueCrest Capital Management Ltd acquired a new position in Fermi in the 2nd quarter valued at about $33,276,000.

Fermi Company Profile

Fermi Inc is an energy and infrastructure company focused on developing large-scale power generation and data center facilities. The company is pursuing an integrated model designed to provide reliable electricity for high-demand computing applications, including artificial intelligence and cloud infrastructure.

Its development activities center on the planned Fermi Nuclear Campus in the Texas Panhandle. The project is expected to combine nuclear power with other generation and energy technologies, potentially including natural gas, renewable energy and battery storage, alongside data center infrastructure.