Fermi (NASDAQ:FRMI) Shares Down 8.8% – Should You Sell?

Shares of Fermi Inc. (NASDAQ:FRMI) were down 8.8% on Wednesday . The stock traded as low as $8.55 and last traded at $8.66. Approximately 2,165,841 shares were traded during trading, a decline of 71% from the average daily volume of 7,538,365 shares. The stock had previously closed at $9.50.

Key Fermi News

Here are the key news stories impacting Fermi this week:

• Negative Sentiment: Anchor‑tenant cancellation: Fermi announced termination of a $150 million customer agreement for Project Matador, undermining a key near‑term funding expectation and prompting at least one securities class action tied directly to that disclosure. FRMI BREAKING NEWS
• Negative Sentiment: Proposed class action(s) filed: Hagens Berman says a securities class action has been filed alleging the IPO and subsequent disclosures were misleading, directly tying litigation risk to the Project Matador funding shortfall. Fermi Inc. (FRMI) Slapped With Securities Class Action
• Negative Sentiment: More plaintiff firms mobilizing: Robbins Geller, Kirby McInerney, Glancy Prongay & Murray and others have announced investor alerts or filings seeking lead plaintiffs for class actions alleging misstatements about tenant demand and project funding. Expect continued legal headlines and potential discovery/expense risk. Robbins Geller Investor Alert
• Negative Sentiment: Additional suits filed: Kirby McInerney and Glancy Prongay & Murray (among others) have either filed lawsuits or issued notices encouraging shareholders to participate, increasing the number of potential claims and legal coordination efforts. Kirby McInerney Filing Glancy Prongay & Murray Filing
• Negative Sentiment: Multiple investigations and solicitations: Several national plaintiff firms (Faruqi, Bronstein Gewirtz, Frank R. Cruz, DJS, Schall, Shareholders Foundation, etc.) are investigating and soliciting investors — increases probability of coordinated litigation, higher legal costs, and distraction for management. PR Newswire – Robbins Geller

Analysts Set New Price Targets

A number of equities analysts have commented on FRMI shares. Evercore ISI set a $37.00 target price on shares of Fermi and gave the stock an “outperform” rating in a research note on Monday, October 27th. UBS Group initiated coverage on shares of Fermi in a report on Monday, October 27th. They set a “buy” rating and a $30.00 price target for the company. Redburn Partners set a $31.00 price objective on Fermi in a report on Monday, October 27th. Zacks Research upgraded Fermi to a “hold” rating in a research report on Tuesday, October 28th. Finally, Weiss Ratings initiated coverage on Fermi in a research note on Wednesday, December 24th. They set a “sell (e+)” rating for the company. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $31.56.

Fermi Trading Down 11.2%

The company has a 50-day moving average of $15.43. The company has a market capitalization of $5.18 billion and a PE ratio of -10.05.

Fermi (NASDAQ:FRMI) last released its quarterly earnings results on Monday, November 10th. The company reported ($0.84) EPS for the quarter.

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.