Fermi Sees Unusually Large Options Volume (NASDAQ:FRMI)

Fermi Inc. (NASDAQ:FRMI) saw unusually large options trading activity on Tuesday. Stock investors acquired 95,560 call options on the company. This is an increase of approximately 63% compared to the average daily volume of 58,756 call options.

Analysts Set New Price Targets

A number of research analysts have recently commented on FRMI shares. UBS Group cut shares of Fermi from a “buy” rating to a “neutral” rating and set a $6.00 target price for the company. in a report on Tuesday, May 5th. Stifel Nicolaus lowered 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. Evercore downgraded shares of Fermi from an “outperform” rating to an “in-line” rating and set a $11.00 price objective for the company. in a research note on Friday, May 15th. Mizuho decreased their target price on shares of Fermi from $27.00 to $11.00 and set an “outperform” rating on the stock in a research note on Tuesday, July 28th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Fermi in a research note on Thursday, July 2nd. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $20.67.

Key Stories Impacting Fermi

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Fermi signed a 15-year lease with AI cloud provider TensorWave covering an initial 222 megawatts of capacity and approximately $6.5 billion in contracted revenue. The first phase is expected to begin delivery in the second half of 2027, with the partnership potentially expanding beyond 650 MW across three phases. Certain obligations are expected to be guaranteed by a major global AI company. Fermi Announces Binding Lease Agreement with TensorWave
• Positive Sentiment: Fermi also announced a framework agreement with Hillcore Energy Capital for a 2.6-gigawatt power complex at Project Matador. Hillcore will finance, build, own and operate the facility under a build-own-operate-transfer structure, allowing Fermi to expand its power marketed to customers to approximately 4.8 GW over the next 30 months without an upfront capital outlay. The complex is planned to include natural-gas generation, solar power and battery storage. Fermi and Hillcore Energy Capital Announce 2.6 Gigawatt Power Strategic Alliance
• Positive Sentiment: Trading activity was unusually strong, with call-option purchases running about 63% above typical daily volume, suggesting increased speculative bullish interest in FRMI.
• Neutral Sentiment: Reported short interest was zero shares, producing a zero-day short-interest ratio. This offers little evidence of short-covering as a driver and may reflect incomplete or unreliable reporting.
• Negative Sentiment: Analysts and commentators continue to identify substantial risks, including the need to finance and construct a very large planned campus, potential cost overruns, and uncertainty surrounding future nuclear and power infrastructure. The initial TensorWave lease is meaningful but represents only a portion of Fermi’s broader 17-GW ambition, leaving significant execution risk before the projected revenue is realized. Fermi Signs Its First Tenant, But Significant Execution Risks Remain

Insider Activity at Fermi

In related news, insider Mesut Uzman sold 79,509 shares of Fermi stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $6.31, for a total value of $501,701.79. Following the transaction, the insider directly owned 670,491 shares of the company’s stock, valued at $4,230,798.21. This trade represents a 10.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director James Richard Perry sold 863,637 shares of the business’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 transaction of $6,313,186.47. Following the transaction, the director owned 15,827,807 shares of the company’s stock, valued at approximately $115,701,269.17. This represents a 5.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,022,178 shares of company stock worth $7,313,580 in the last quarter.

Institutional Investors Weigh In On Fermi

A number of institutional investors have recently made changes to their positions in the stock. Prime Capital Investment Advisors LLC acquired a new position in shares of Fermi in the fourth quarter worth approximately $84,000. Choreo LLC bought a new position in Fermi during the 4th quarter worth approximately $98,000. Aspect Partners LLC acquired a new position in shares of Fermi in the 4th quarter worth approximately $38,000. Capelight Capital Asset Management LP bought a new stake in shares of Fermi in the 4th quarter valued at $292,000. Finally, Renaissance Capital LLC acquired a new stake in shares of Fermi during the fourth quarter worth $182,000.

Fermi Price Performance

NASDAQ FRMI traded up $1.24 during trading hours on Tuesday, reaching $7.12. The company’s stock had a trading volume of 50,478,351 shares, compared to its average volume of 14,624,114. The firm has a fifty day simple moving average of $7.14 and a 200-day simple moving average of $7.24. Fermi has a 52 week low of $4.47 and a 52 week high of $36.99. The stock has a market cap of $4.54 billion and a P/E ratio of -6.25.

Fermi (NASDAQ:FRMI) last announced its quarterly 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). On average, research analysts expect that Fermi will post -0.33 earnings per share for the current year.

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.