Stock Traders Purchase High Volume of Put Options on Fermi (NASDAQ:FRMI)

Fermi Inc. (NASDAQ:FRMI) was the target of unusually large options trading on Monday. Investors acquired 59,668 put options on the company. This represents an increase of 46% compared to the typical daily volume of 40,900 put options.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on FRMI shares. Wall Street Zen lowered shares of Fermi from a “hold” rating to a “sell” rating in a report on Sunday, May 10th. Evercore cut shares of Fermi from an “outperform” rating to an “in-line” rating and set a $11.00 target price on the stock. in a report on Friday, May 15th. Cantor Fitzgerald began coverage on shares of Fermi in a research note on Thursday, April 9th. They issued an “overweight” rating and a $8.00 price objective on the stock. Weiss Ratings reissued a “sell (e+)” rating on shares of Fermi in a research note on Monday, March 23rd. Finally, UBS Group downgraded shares of Fermi from a “buy” rating to a “neutral” rating and set a $6.00 target price for the company. in a research report on Tuesday, May 5th. 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 issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $23.78.

Fermi Price Performance

FRMI traded up $0.31 during midday trading on Monday, reaching $7.45. 16,641,754 shares of the company’s stock traded hands, compared to its average volume of 12,633,746. The firm has a fifty day moving average of $5.83 and a two-hundred day moving average of $8.31. The stock has a market capitalization of $4.75 billion and a price-to-earnings ratio of -6.51. Fermi has a 52 week low of $4.47 and a 52 week high of $36.99.

Fermi (NASDAQ:FRMI) last issued its earnings results on Thursday, May 14th. The company reported ($0.30) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.25). Sell-side analysts forecast that Fermi will post 0.4 EPS for the current year.

Insiders Place Their Bets

In other news, insider Charles Lynn Hamilton sold 398,140 shares of the stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $4.58, for a total value of $1,823,481.20. Following the completion of the sale, the insider owned 5,525,910 shares in the company, valued at $25,308,667.80. This represents a 6.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, major shareholder Griffin Perry sold 9,000,000 shares of the stock in a transaction on Monday, March 30th. The stock was sold at an average price of $5.02, for a total value of $45,180,000.00. Following the sale, the insider owned 62,946,450 shares of the company’s stock, valued at approximately $315,991,179. This represents a 12.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 13,593,748 shares of company stock worth $68,803,933.

Institutional Trading of Fermi

Several institutional investors and hedge funds have recently modified their holdings of the stock. ORG Wealth Partners LLC purchased a new position in Fermi in the fourth quarter worth $151,000. Nisa Investment Advisors LLC acquired a new stake in Fermi during the fourth quarter valued at $423,000. Prime Capital Investment Advisors LLC acquired a new position in shares of Fermi during the 4th quarter worth about $84,000. Choreo LLC acquired a new position in Fermi during the fourth quarter worth about $98,000. Finally, Aspect Partners LLC acquired a new position in Fermi during the fourth quarter worth about $38,000.

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.