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

Fermi Inc. (NASDAQ:FRMI) shares gapped up before the market opened on Thursday . The stock had previously closed at $4.77, but opened at $5.05. Fermi shares last traded at $4.9020, with a volume of 1,062,907 shares traded.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the company. Stifel Nicolaus dropped their price target on Fermi from $29.00 to $17.00 and set a “buy” rating on the stock in a research report on Tuesday, June 23rd. Weiss Ratings downgraded Fermi from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, August 14th. Finally, Mizuho dropped their target price on Fermi from $27.00 to $11.00 and set an “outperform” rating on the stock in a research report on Tuesday, July 28th. Two analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $20.67.

Fermi Price Performance

The stock has a fifty day moving average price of $5.96 and a two-hundred day moving average price of $6.53. The company has a market cap of $3.15 billion and a P/E ratio of -4.17.

Fermi (NASDAQ:FRMI) last issued its quarterly earnings data on Thursday, August 13th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.02. During the same period in the prior year, the business earned ($0.02) earnings per share. As a group, analysts forecast that Fermi Inc. will post -0.33 earnings per share for the current year.

Insider Activity at Fermi

In related news, Director James Perry sold 863,637 shares of Fermi stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $7.31, for a total transaction of $6,313,186.47. Following the sale, the director directly owned 15,827,807 shares in the company, valued at $115,701,269.17. The trade was a 5.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website.

Institutional Trading of Fermi

A number of hedge funds and other institutional investors have recently made changes to their positions in FRMI. BlackRock Inc. acquired a new position in shares of Fermi during the second quarter valued at approximately $38,499,000. BlueCrest Capital Management Ltd acquired a new stake in Fermi in the second quarter worth approximately $33,276,000. Alyeska Investment Group L.P. boosted its stake in Fermi by 82.4% during the 2nd quarter. Alyeska Investment Group L.P. now owns 2,886,836 shares of the company’s stock valued at $26,443,000 after purchasing an additional 1,303,979 shares in the last quarter. Ratan Capital Management LP acquired a new position in shares of Fermi during the 2nd quarter valued at $19,774,000. Finally, Bank of America Corp DE bought a new stake in shares of Fermi in the 2nd quarter worth $17,859,000.

Fermi Company Profile

Fermi Inc is an energy and digital infrastructure company developing large-scale power-generation and data-center facilities to support energy-intensive computing, including artificial intelligence applications. Its business focuses on integrating electricity generation, transmission infrastructure and data-center capacity within dedicated campuses.

The company’s primary development effort is the Fermi America project near Amarillo, Texas, also referred to as Project Matador. The planned campus is intended to use a diversified energy portfolio that may include natural gas, nuclear power, solar generation and battery storage, with the goal of providing reliable electricity for data centers and other high-demand technology users.

Fermi’s operations are currently centered on the United States, particularly Texas.