Fermi Inc. enters the back half of June with its 40% weekly rally intact, a leadership vacuum at the top, and a market that has chosen, for now, to focus on the upside.
The most telling signal is in the options market, and it has barely budged from where it was when this rally began. The put/call ratio closed at 0.37 on Tuesday — still near a two-year low, and 2.3 standard deviations below the 20-day average of 0.49. Call demand is running at its most dominant relative to puts in at least a year; the 52-week high PCR was 0.94, more than twice the current level. That kind of one-sidedness typically reflects conviction, not just momentum chasing. The borrow market supports the read: availability has loosened to 142%, meaning roughly 29 million shares remain available to lend. Cost to borrow has collapsed from above 2% in early May to just 0.59% now — down more than 68% over 30 days. There is no squeeze tension here; shorts can build positions freely.
Short interest is doing exactly that. SI climbed 24% over the past week to 4.6% of the free float, or around 28.3 million shares. The rebuild is real, but the full picture matters: shorts peaked above 43 million shares in mid-May, then unwound sharply. The current level is a recovery from a trough, not a fresh assault. Shorts rebuilding into a 40% weekly rally while options traders pile into calls is the central tension on this name right now — and neither side has blinked.
The analyst community reflects a similar split, though the recent direction of travel has been negative. Evercore ISI downgraded to In-Line from Outperform on May 15, cutting the target from $20 to $11. That move is the most recent formal action, and it lands in uncomfortable territory: the stock at $7.88 trades below even the bear-camp target, while the consensus mean of $20.75 implies more than 160% upside. UBS cut its target to $8 from $30 earlier in the year. The bull case, articulated by Macquarie at Outperform with a $20 target, centres on Fermi's AI-focused private power campus model and the intensity of hyperscaler demand for firm power. The bear case is simpler: CEO Toby Neugebauer is gone, the REIT conversion timeline is uncertain, and his 28.9% stake represents a persistent overhang if he sells down. Evercore's downgrade essentially prices in that execution risk.
Institutional ownership adds texture to the overhang story. Neugebauer remains the single largest holder with 184 million shares, having trimmed only modestly last quarter. James Perry added 16.5 million shares as of June 1 — a meaningful fresh buy. CFO Miles Everson added 5.5 million shares in the same period. Against that, COO Jacobo Blanes and CFO Everson both sold in early April at prices around $4.58–$4.91, generating roughly $4–$5 million each. Those April sales look opportunistic in hindsight, given the subsequent rally to $7.88. The net insider position over 90 days is a positive 13.6 million shares — a mild net buy, though the composition is mixed.
Earnings history adds one more variable. The May 14 print delivered an 8.5% next-day move. The May 21 event produced a one-day drop of 1.6%, then recovered 11.5% over the following five days. The next scheduled print is August 14. Between now and then, the stock's trajectory is likely to hinge less on data and more on whether a credible successor to Neugebauer materialises — and whether the REIT conversion timetable holds.
See the live data behind this article on ORTEX.
Open FRMI on ORTEX →ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
