Fermi (NASDAQ:FRMI) Stock Jumps 5.7% – Should You Buy?

Shares of Fermi Inc. (NASDAQ:FRMI) shot up 5.7% on Monday. The stock traded as high as $1.7150 and last traded at $1.66. Approximately 23,077,644 shares changed hands during mid-day trading, an increase of 41% from the average daily volume of 16,346,043 shares. The stock had previously closed at $1.57.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the stock. Mizuho decreased their price target on shares of Fermi from $27.00 to $11.00 and set an “outperform” rating for the company in a report on Tuesday, July 28th. Weiss Ratings downgraded Fermi from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, August 14th. Finally, Cantor Fitzgerald lowered their target price on Fermi from $12.00 to $8.00 and set an “overweight” rating on the stock in a research note on Friday, October 16th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $16.86.

Fermi Price Performance

The stock has a market cap of $1.16 billion and a price-to-earnings ratio of -1.53. The company’s fifty day simple moving average is $3.74 and its two-hundred day simple moving average is $6.24.

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

Insider Activity

In other Fermi news, major shareholder Toby Neugebauer sold 5,000,000 shares of the business’s stock in a transaction dated Thursday, November 5th. The stock was sold at an average price of $1.52, for a total transaction of $7,600,000.00. Following the completion of the sale, the insider owned 84,813,010 shares of the company’s stock, valued at approximately $128,915,775.20. The trade was a 5.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. In the last ninety days, insiders sold 12,125,749 shares of company stock worth $28,639,969. Insiders own 2.83% of the company’s stock.

Hedge Funds Weigh In On Fermi

A number of hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in shares of Fermi during the second quarter valued at about $38,499,000. Value Aligned Research Advisors LLC purchased a new position in shares of Fermi in the second quarter worth about $12,531,000. Philadelphia Financial Management of San Francisco LLC purchased a new stake in shares of Fermi in the 2nd quarter valued at $3,893,000. Alyeska Investment Group L.P. raised its stake in shares of 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 buying an additional 1,303,979 shares during the last quarter. Finally, Sequoia Financial Advisors LLC acquired a new position in Fermi in the second quarter valued at approximately $1,845,000.

About Fermi

Fermi Inc. develops energy and data-center infrastructure intended to support artificial intelligence and other high-performance computing needs. Its business centers on planning and building integrated campuses that pair large-scale power resources with data-center facilities. The company’s flagship development is Project Matador, a planned campus in the Texas Panhandle near Amarillo. The project is designed to combine data centers with a mix of power-generation and energy-storage resources; it remains a development project rather than an established portfolio of operating facilities.