Fermi (NASDAQ:FRMI) Trading Down 11.1% on Insider Selling

Fermi Inc. (NASDAQ:FRMI)’s share price traded down 11.1% during trading on Friday after an insider sold shares in the company. The company traded as low as $5.56 and last traded at $5.4950. 3,691,654 shares changed hands during mid-day trading, a decline of 69% from the average session volume of 11,941,854 shares. The stock had previously closed at $6.18.

Specifically, insider Mesut Uzman sold 79,509 shares of the company’s stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $6.31, for a total value of $501,701.79. Following the completion of the sale, the insider directly owned 670,491 shares in the company, valued at $4,230,798.21. This represents a 10.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Mesut Uzman sold 79,032 shares of the company’s stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $6.31, for a total value of $498,691.92. Following the completion of the sale, the insider owned 670,968 shares of the company’s stock, valued at $4,233,808.08. This trade represents a 10.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Citizens Jmp assumed coverage on Fermi in a research report on Monday, February 9th. They issued a “market outperform” rating and a $30.00 target price for the company. Cantor Fitzgerald initiated coverage on shares of Fermi in a report on Thursday, April 9th. They issued an “overweight” rating and a $8.00 price target for the company. Evercore downgraded shares of Fermi from an “outperform” rating to an “in-line” rating and set a $11.00 price target for the company. in a report on Friday, May 15th. UBS Group downgraded shares of Fermi from a “buy” rating to a “neutral” rating and set a $6.00 price target for the company. in a report on Tuesday, May 5th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Fermi in a report on Monday, March 23rd. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Fermi currently has a consensus rating of “Moderate Buy” and a consensus target price of $23.78.

Fermi Stock Performance

The firm has a market capitalization of $3.49 billion and a P/E ratio of -4.81. The firm has a 50 day moving average price of $5.78 and a two-hundred day moving average price of $8.73.

Fermi (NASDAQ:FRMI) last released its quarterly earnings data on Thursday, May 14th. The company reported ($0.30) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.25). Equities research analysts forecast that Fermi Inc. will post 0.4 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Empire Life Investments Inc. acquired a new position in shares of Fermi in the fourth quarter worth about $5,611,000. Hsbc Holdings PLC acquired a new position in shares of Fermi in the fourth quarter worth about $1,056,000. PFG Investments LLC acquired a new position in shares of Fermi in the first quarter worth about $146,000. Sovereign s Capital Management LLC acquired a new position in shares of Fermi in the fourth quarter worth about $2,208,000. Finally, SIR Capital Management L.P. acquired a new stake in shares of Fermi in the fourth quarter worth $2,255,000.

Fermi Company Profile

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.