Fermi (NASDAQ:FRMI) Shares Gap Up – Still a Buy?

Shares of Fermi Inc. (NASDAQ:FRMI) gapped up before the market opened on Tuesday . The stock had previously closed at $5.40, but opened at $5.76. Fermi shares last traded at $5.6350, with a volume of 5,792,950 shares trading hands.

Fermi News Roundup

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Project Matador (Texas Panhandle AI/data‑center site) is reportedly advancing, which supports the company’s long‑term asset thesis if it secures hyperscaler tenants. Article Title
• Positive Sentiment: Former CEO Toby Neugebauer (a large shareholder) publicly called for a sale to “maximize shareholder value,” signaling a potential near‑term value‑unlocking transaction or process that could be a catalyst. Article Title
• Neutral Sentiment: Company announced “Fermi 2.0,” a strategic evolution with a new board chair, leadership transitions and office moves — the plan aims to reset priorities but details and execution timeline remain unclear. Article Title
• Neutral Sentiment: PR from Toby highlights he and insiders own ~40% of shares and that he hasn’t sold since the IPO—this alignment can reassure some investors but also concentrates control. Article Title
• Negative Sentiment: Abrupt departures of CEO Toby Neugebauer and CFO Miles Everson prompted a sharp selloff as investors worry about leadership stability during a capital‑intensive buildout and while the company has yet to secure anchor hyperscaler tenants. Article Title
• Negative Sentiment: Regulatory/litigation risk: a shareholder law firm has opened an investigation into potential fiduciary breaches, which could lead to lawsuits or distractions for management. Article Title
• Negative Sentiment: Analyst and market commentary highlight that Fermi still faces the critical challenge of finding cornerstone customers for Project Matador; failure to land hyperscaler tenants would impair revenue prospects and raise funding needs. Article Title

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the stock. Weiss Ratings reissued a “sell (e+)” rating on shares of Fermi in a research note on Monday, March 23rd. Citigroup began coverage on shares of Fermi in a research report on Monday, February 9th. They set an “outperform” rating on the stock. Citizens Jmp began coverage on shares of Fermi in a research report on Monday, February 9th. They set a “market outperform” rating and a $30.00 target price on the stock. UBS Group cut their target price on shares of Fermi from $30.00 to $8.00 and set a “buy” rating on the stock in a research report on Wednesday, April 1st. Finally, Wall Street Zen downgraded shares of Fermi from a “hold” rating to a “sell” rating in a research report on Saturday, March 28th. Three equities research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Fermi currently has a consensus rating of “Buy” and an average price target of $26.89.

Fermi Trading Down 2.7%

The business’s 50-day moving average price is $7.65 and its 200-day moving average price is $13.02. The stock has a market cap of $3.31 billion and a PE ratio of -6.27.

Insider Activity

In other Fermi news, COO Blanes Jacobo Ortiz sold 427,363 shares of the business’s stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $4.58, for a total transaction of $1,957,322.54. Following the sale, the chief operating officer owned 5,469,092 shares of the company’s stock, valued at approximately $25,048,441.36. The trade was a 7.25% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Miles E. Everson sold 427,004 shares of the business’s stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $4.58, for a total transaction of $1,955,678.32. Following the sale, the chief financial officer directly owned 9,969,791 shares in the company, valued at approximately $45,661,642.78. This represents a 4.11% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 13,435,207 shares of company stock worth $67,803,539 in the last quarter.

Institutional Trading of Fermi

Several large investors have recently bought and sold shares of FRMI. ORG Wealth Partners LLC purchased a new stake in Fermi during the 4th quarter worth approximately $151,000. Nisa Investment Advisors LLC purchased a new stake in Fermi during the 4th quarter worth approximately $423,000. Prime Capital Investment Advisors LLC purchased a new stake in Fermi during the 4th quarter worth approximately $84,000. Choreo LLC purchased a new stake in Fermi during the 4th quarter worth approximately $98,000. Finally, Aspect Partners LLC purchased a new stake in Fermi during the 4th quarter worth approximately $38,000.

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.