Fermi (NASDAQ:FRMI) Stock Price Down 6.9% – Time to Sell?

by · The Cerbat Gem

Fermi Inc. (NASDAQ:FRMI – Get Free Report)’s share price dropped 6.9% during trading on Tuesday . The stock traded as low as $9.39 and last traded at $9.43. Approximately 1,116,381 shares changed hands during trading, a decline of 85% from the average daily volume of 7,515,352 shares. The stock had previously closed at $10.13.

Fermi News Roundup

Here are the key news stories impacting Fermi this week:

  • Positive Sentiment: Texas Capital analysts upgraded Fermi to a “strong‑buy,” a near‑term positive catalyst that can support buying interest and help explain upside momentum. Texas Capital upgrade reported via Zacks
  • Neutral Sentiment: Unrelated press: a leadership change at Fermilab (the government lab) appeared in news feeds; this is likely name‑confusion for some readers and not material to Fermi Inc.’s business or finances. Physicist Norbert Holtkamp takes over as head of Fermilab
  • Negative Sentiment: Multiple national plaintiffs’ firms have filed or notified investors of securities class actions alleging misleading IPO disclosures and other securities law violations; many notices point to an investor lead‑plaintiff deadline around March 6, 2026. This broad legal attention raises potential litigation expense, distraction for management, and risk of future settlements or judgments. Levi & Korsinsky class action notice
  • Negative Sentiment: A cluster of firms (Hagens Berman, Berger Montague, Bernstein Liebhard, Pomerantz, Faruqi, BFA, Schall, Robbins Geller, and others) are actively soliciting IPO and post‑IPO investors—several allege the company misled investors about tenant demand and financing for its Project Matador AI campus; media coverage also highlights a prior ~33% stock plunge tied to these concerns. That narrative increases uncertainty around future fundraising, reputation, and share performance. Hagens Berman Project Matador notice

Analysts Set New Price Targets

A number of research analysts have commented on FRMI shares. Evercore ISI set a $37.00 price objective on shares of Fermi and gave the company an “outperform” rating in a research note on Monday, October 27th. UBS Group assumed coverage on shares of Fermi in a research note on Monday, October 27th. They issued a “buy” rating and a $30.00 target price on the stock. Berenberg Bank initiated coverage on Fermi in a research note on Monday, October 27th. They issued a “buy” rating and a $37.00 price target for the company. Mizuho started coverage on Fermi in a report on Monday, October 27th. They issued an “outperform” rating and a $27.00 price objective for the company. Finally, Rothschild & Co Redburn initiated coverage on Fermi in a research note on Monday, October 27th. They set a “buy” rating and a $31.00 price objective on the stock. Three analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus target price of $31.56.

Read Our Latest Stock Analysis on Fermi

Fermi Stock Up 1.8%

The stock’s 50-day moving average price is $11.72. The stock has a market cap of $5.65 billion and a PE ratio of -10.95.

Fermi (NASDAQ:FRMI – Get Free Report) last posted its earnings results on Monday, November 10th. The company reported ($0.84) EPS for the quarter.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Prime Capital Investment Advisors LLC bought a new position in shares of Fermi in the fourth quarter worth $84,000. ORG Wealth Partners LLC bought a new position in Fermi in the 4th quarter valued at about $151,000. Finally, Nisa Investment Advisors LLC acquired a new position in Fermi during the 4th quarter valued at about $423,000.

Fermi Company Profile

(Get Free Report)

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.

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