Fermi (NASDAQ:FRMI) Stock Price Down 10.2% – Here’s What Happened

Fermi Inc. (NASDAQ:FRMI)’s stock price dropped 10.2% during mid-day trading on Tuesday . The stock traded as low as $7.38 and last traded at $7.3750. 5,619,881 shares traded hands during mid-day trading, a decline of 58% from the average session volume of 13,463,938 shares. The stock had previously closed at $8.21.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on FRMI. UBS Group downgraded Fermi from a “buy” rating to a “neutral” rating and set a $6.00 price objective for the company. in a report on Tuesday, May 5th. Wall Street Zen cut Fermi from a “hold” rating to a “sell” rating in a report on Sunday, May 10th. Evercore cut Fermi from an “outperform” rating to an “in-line” rating and set a $11.00 price target for the company. in a research note on Friday, May 15th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Fermi in a research report on Thursday. Finally, Cantor Fitzgerald initiated coverage on shares of Fermi in a research note on Thursday, April 9th. They set an “overweight” rating and a $8.00 price objective on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $22.44.

Fermi Trading Down 7.2%

The firm has a market cap of $4.86 billion and a price-to-earnings ratio of -6.66. The company has a 50 day moving average of $6.86 and a 200 day moving average of $7.66.

Fermi (NASDAQ:FRMI) last posted its earnings results 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 analysts forecast that Fermi Inc. will post 0.34 EPS for the current fiscal year.

Insiders Place Their Bets

In other Fermi news, insider Mesut Uzman sold 79,509 shares of the firm’s stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $6.31, for a total transaction of $501,701.79. Following the sale, the insider directly owned 670,491 shares in the company, valued at approximately $4,230,798.21. This trade represents a 10.60% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, COO Blanes Jacobo Ortiz sold 427,363 shares of Fermi stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $4.58, for a total transaction of $1,957,322.54. Following the completion of the transaction, the chief operating officer directly owned 5,469,092 shares in the company, valued at approximately $25,048,441.36. The trade was a 7.25% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 3,457,385 shares of company stock worth $18,857,119 in the last three months.

Hedge Funds Weigh In On Fermi

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Leonteq Securities AG acquired a new stake in shares of Fermi in the 4th quarter valued at about $30,000. PNC Financial Services Group Inc. acquired a new position in shares of Fermi during the fourth quarter worth about $36,000. Aspect Partners LLC bought a new position in shares of Fermi during the fourth quarter worth about $38,000. SBI Securities Co. Ltd. bought a new position in shares of Fermi during the fourth quarter worth about $41,000. Finally, NewEdge Advisors LLC acquired a new stake in Fermi in 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.