Fermi Inc. (NASDAQ:FRMI) Receives Consensus Rating of “Moderate Buy” from Analysts

Shares of Fermi Inc. (NASDAQ:FRMI) have received a consensus rating of “Moderate Buy” from the thirteen ratings firms that are covering the stock, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation, seven have issued a buy recommendation and two have assigned a strong buy recommendation to the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $22.4444.

A number of brokerages have recently issued reports on FRMI. Evercore cut Fermi from an “outperform” rating to an “in-line” rating and set a $11.00 price objective on the stock. in a research note on Friday, May 15th. UBS Group downgraded shares of Fermi from a “buy” rating to a “neutral” rating and set a $6.00 target price on the stock. in a report on Tuesday, May 5th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Fermi in a research report on Thursday, July 2nd. Wall Street Zen cut shares of Fermi from a “hold” rating to a “sell” rating in a research note on Sunday, May 10th. Finally, Stifel Nicolaus decreased their price objective on shares of Fermi from $29.00 to $17.00 and set a “buy” rating for the company in a research report on Tuesday, June 23rd.

Key Headlines Impacting Fermi

Here are the key news stories impacting Fermi this week:

• Negative Sentiment: Fermi priced an upsized $375 million convertible senior notes offering due 2031, which raises dilution concerns and adds to leverage. Fermi Inc. Prices Upsized Offering of $375 Million of Convertible Senior Notes – Dilution Offset Until 14.64 per Share
• Negative Sentiment: Multiple market reports say FRMI shares are under pressure after the company launched its convertible notes financing, with traders focusing on potential dilution rather than near-term growth catalysts. Fermi Shares Fall After Launching $350M Convertible Notes Offering
• Negative Sentiment: Unusually heavy call option activity suggests traders expect continued volatility, but it does not offset the negative reaction to the financing news.
• Neutral Sentiment: One report said Rep. Neugebauer dropped a meeting fight but will continue monitoring Fermi’s board, adding a governance headline without a clear operating impact. Neugebauer drops meeting fight but vows to monitor Fermi America Board

Fermi Stock Down 10.0%

Shares of NASDAQ:FRMI traded down $0.73 during midday trading on Friday, reaching $6.59. The company had a trading volume of 72,369,843 shares, compared to its average volume of 17,025,956. Fermi has a 1-year low of $4.47 and a 1-year high of $36.99. The stock has a market cap of $4.20 billion and a PE ratio of -5.78. The business’s 50 day moving average price is $7.01 and its 200 day moving average price is $7.63.

Fermi (NASDAQ:FRMI) last issued its quarterly 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, research analysts expect that Fermi will post 0.34 earnings per share for the current fiscal year.

Insider Activity

In other Fermi news, insider Mesut Uzman sold 79,509 shares of the business’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 transaction of $501,701.79. Following the transaction, the insider owned 670,491 shares of the company’s stock, valued at $4,230,798.21. The trade was a 10.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director James Richard Perry sold 863,637 shares of the company’s stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $7.31, for a total value of $6,313,186.47. Following the completion of the sale, the director owned 15,827,807 shares in the company, valued at $115,701,269.17. This represents a 5.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,022,178 shares of company stock valued at $7,313,580 over the last quarter.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Weiss Asset Management LP raised its stake in Fermi by 431.6% in the 1st quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company’s stock valued at $14,104,000 after acquiring an additional 1,960,764 shares during the period. Balyasny Asset Management L.P. bought a new position in Fermi during the fourth quarter worth $16,549,000. M&G PLC bought a new position in Fermi during the fourth quarter worth $14,443,000. Renaissance Technologies LLC increased its holdings in shares of Fermi by 311.3% in the first quarter. Renaissance Technologies LLC now owns 1,403,700 shares of the company’s stock valued at $8,198,000 after purchasing an additional 1,062,400 shares during the last quarter. Finally, Nuveen LLC acquired a new position in shares of Fermi in the fourth quarter valued at $11,067,000.

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.