Fermi (NASDAQ:FRMI) Shares Gap Up – Here’s Why

Fermi Inc. (NASDAQ:FRMI)’s stock price gapped up prior to trading on Thursday . The stock had previously closed at $7.99, but opened at $8.57. Fermi shares last traded at $8.2040, with a volume of 2,226,264 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. Stifel Nicolaus decreased their target price on Fermi from $29.00 to $17.00 and set a “buy” rating on the stock in a research report on Tuesday. Cantor Fitzgerald began coverage on shares of Fermi in a report on Thursday, April 9th. They issued an “overweight” rating and a $8.00 target price for the company. Wall Street Zen downgraded shares of Fermi from a “hold” rating to a “sell” rating in a research note on Sunday, May 10th. UBS Group lowered shares of Fermi from a “buy” rating to a “neutral” rating and set a $6.00 price target on the stock. in a report on Tuesday, May 5th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Fermi in a research report on Monday, March 23rd. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $22.44.

Fermi Stock Up 1.8%

The company has a 50 day moving average price of $6.40 and a 200-day moving average price of $7.92. The company has a market cap of $5.19 billion and a price-to-earnings ratio of -7.17.

Fermi (NASDAQ:FRMI) last posted its earnings results on Thursday, May 14th. The company reported ($0.30) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.25). On average, analysts forecast that Fermi Inc. will post 0.4 EPS for the current fiscal year.

Insider Activity at Fermi

In related news, CFO Miles E. Everson sold 427,004 shares of the stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $4.58, for a total value of $1,955,678.32. Following the completion of the sale, the chief financial officer directly owned 9,969,791 shares in the company, valued at $45,661,642.78. This represents a 4.11% 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 79,509 shares of the firm’s stock in a transaction 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 transaction, the insider directly owned 670,491 shares of the company’s stock, valued at approximately $4,230,798.21. This represents a 10.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 13,593,748 shares of company stock valued at $68,803,933 in the last quarter.

Institutional Investors Weigh In On Fermi

A number of institutional investors have recently made changes to their positions in FRMI. Leonteq Securities AG bought a new position in shares of Fermi during the fourth quarter worth about $30,000. PNC Financial Services Group Inc. bought a new stake in Fermi in the fourth quarter valued at approximately $36,000. Aspect Partners LLC bought a new stake in Fermi in the fourth quarter valued at approximately $38,000. SBI Securities Co. Ltd. acquired a new stake in Fermi during the 4th quarter valued at approximately $41,000. Finally, NewEdge Advisors LLC acquired a new stake in Fermi during the 1st quarter valued at approximately $54,000.

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.