Fermi (NASDAQ:FRMI) Stock Jumps 2.6% – Should You Buy?

Fermi Inc. (NASDAQ:FRMI)’s stock price traded up 2.6% during mid-day trading on Friday. The company traded as high as $1.62 and last traded at $1.57. Approximately 28,569,599 shares changed hands during mid-day trading, an increase of 75% from the average daily volume of 16,305,810 shares. The stock had previously closed at $1.53.

Trending Headlines about Fermi

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Neugebauer is calling for Fermi to be sold and sharply criticizing Rick Perry and the board. The prospect of a sale may be fueling optimism about a potential strategic outcome. Article: Toby Neugebauer pushes for Fermi sale
• Neutral Sentiment: Brokerage coverage cited in a report puts Fermi at a “Moderate Buy” consensus, though the available article does not describe a new material change in analyst expectations. Article: Fermi rated Moderate Buy
• Negative Sentiment: Neugebauer disclosed sales of 5 million shares on Nov. 5, 94,000 shares on Nov. 4, and 2.56 million shares on Nov. 3. The sales could add pressure to sentiment, even as he remains a major shareholder; the filings do not state his reasons. Article: Neugebauer share sales
• Negative Sentiment: The public clash over the board and Fermi’s direction signals governance and strategic uncertainty. Neugebauer says shareholders, markets, and Texas voters have rejected the board’s approach, raising questions about the company’s path forward. Article: Neugebauer criticizes Fermi board

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Weiss Ratings downgraded shares of Fermi from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, August 14th. Mizuho cut their target price on shares of Fermi from $27.00 to $11.00 and set an “outperform” rating on the stock in a research note on Tuesday, July 28th. Finally, Cantor Fitzgerald reduced their price target on shares of Fermi from $12.00 to $8.00 and set an “overweight” rating on the stock in a research report on Friday, October 16th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $16.86.

Fermi Stock Up 2.6%

The stock has a market capitalization of $1.01 billion and a P/E ratio of -1.33. The company has a 50 day moving average of $3.95 and a 200-day moving average of $6.35.

Fermi (NASDAQ:FRMI) last issued its earnings results on Thursday, August 13th. The company reported ($0.04) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.02. During the same quarter last year, the firm earned ($0.02) EPS. Equities analysts forecast that Fermi Inc. will post -0.33 EPS for the current fiscal year.

Insider Buying and Selling

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. DBA Trading LLC bought a new stake in shares of Fermi in the 3rd quarter worth $120,000. Fulcrum Asset Management LLP bought a new position in Fermi during the third quarter valued at about $410,000. Pictet Asset Management Holding SA bought a new position in Fermi during the third quarter valued at about $218,000. CenterBook Partners LP grew its holdings in Fermi by 997.7% during the third quarter. CenterBook Partners LP now owns 1,879,838 shares of the company’s stock worth $7,914,000 after acquiring an additional 1,708,587 shares during the period. Finally, Chicago Partners Investment Group LLC acquired a new position in Fermi during the third quarter worth about $64,000.

Fermi Company Profile

Fermi, Inc (NASDAQ: FRMI) is an energy and infrastructure company focused on developing large-scale power and data center facilities for artificial intelligence and other high-performance computing applications. Its business model centers on integrating electricity generation, energy storage and data center infrastructure within a single campus.

The company’s principal development is Project Matador, a planned energy and data center campus in the Texas Panhandle. The project is designed to use a mix of power sources, including nuclear energy, natural gas, solar generation and battery storage, with the goal of providing reliable electricity for data center customers.

Fermi’s activities are currently concentrated in the United States, particularly Texas.