FRMI shares in Fermi Inc. are down 7.7% this month. The lending pool tells an even starker story.
Every available share in the borrow market is now lent out. Availability has dropped to 0% — the tightest it has been in 52 weeks — as short sellers absorbed every share brokers could source. Short interest hit 5.5% of free float on May 5, up 9% in a single day and 13.5% on the week. Over the past month, short positions have grown 26%.
The lending data throws up an unusual contradiction. Cost to borrow collapsed 53% in one week to just 0.95% annualised. A month ago it stood at 4.65%.
That drop, alongside zero availability, suggests a structural shift in supply. A large block of shares likely entered the lending pool — driving cost to borrow down sharply — while short sellers immediately consumed it all. The lending market is now completely saturated at a lower price point.
The ORTEX short score sits at 68.2, up from 63.1 two weeks ago. That's a sustained move, not a one-day spike.
The insider picture is the standout context. Net insider selling over the past 90 days reached approximately $67.8 million across more than 13 million shares.
Founder Griffin Perry sold 11 million shares across two days in late March — $45.2 million on March 30 and $11.1 million on March 31. The COO and CFO each sold roughly $3.9 million over April 8–9, at prices around $4.58–$4.91.
The stock now trades at $4.94. Insiders sold heavily at prices only marginally above where the stock sits today.
Consensus remains "buy" with 7 of 8 analysts positive. The mean price target is $22.89 — more than 4x the current price. But that headline masks significant downward revisions.
UBS cut its target from $30 to $8 on April 1. Macquarie trimmed from $25 to $20 on the same day. Both kept their positive ratings. The bear case, per analyst commentary, centres on a cancelled construction advance, CEO departure, and revised EBITDA forecasts showing material losses in FY26.
Earnings are due May 13. The last two prints moved the stock down 5.5% and 20.1% respectively on day one.
What to watch: Whether the borrow market loosens ahead of the May 13 earnings print, and whether SI continues to build into results given that new supply appears to be absorbed instantly.
See the live data behind this article on ORTEX.
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