Royal Bank Of Canada Issues Pessimistic Forecast for NuScale Power (NYSE:SMR) Stock Price

Key Points

• Royal Bank of Canada cut its NuScale Power price target from $7 to $5 and maintained a “sector perform” rating, implying about 0.5% downside from the prior close. Across analysts, the average rating is “Hold” and the average target is $8.77.
• NuScale reported a quarterly loss of $0.11 per share, slightly better than expected, but revenue of $0.28 million fell far short of the $3.66 million estimate and was down 96.6% year over year.
• Shares rose 15% on Friday to $5.03. The company says it has begun producing physical reactor modules and has $1.9 billion in liquidity, but converting plans into commercial orders remains a key challenge.

NuScale Power (NYSE:SMR - Get Free Report) had its price target dropped by research analysts at Royal Bank Of Canada from $7.00 to $5.00 in a report issued on Friday, Benzinga reports. The firm presently has a "sector perform" rating on the stock. Royal Bank Of Canada's price target points to a potential downside of 0.50% from the company's previous close.

Several other research firms have also recently commented on SMR. Northland Securities set a $16.00 price target on NuScale Power in a report on Thursday, August 6th. Wedbush assumed coverage on shares of NuScale Power in a report on Tuesday. They set an "underperform" rating and a $5.00 price objective on the stock. B. Riley Financial decreased their target price on shares of NuScale Power from $15.00 to $10.00 and set a "buy" rating on the stock in a research report on Wednesday, October 28th. Truist Financial lowered their target price on shares of NuScale Power from $10.00 to $8.00 and set a "hold" rating for the company in a report on Thursday, October 22nd. Finally, Citigroup lowered their target price on shares of NuScale Power from $6.50 to $4.00 and set a "sell" rating for the company in a report on Wednesday, October 21st. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, seven have given a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $8.77.

NuScale Power Stock Up 15.0%

Shares of NYSE:SMR traded up $0.66 during midday trading on Friday, reaching $5.03. The company's stock had a trading volume of 23,221,569 shares, compared to its average volume of 31,442,584. The firm has a market cap of $2.16 billion, a price-to-earnings ratio of -1.72 and a beta of 2.42. NuScale Power has a 1 year low of $4.28 and a 1 year high of $32.09. The business has a 50 day moving average price of $7.54 and a 200 day moving average price of $10.63.

NuScale Power (NYSE:SMR - Get Free Report) last released its earnings results on Thursday, November 5th. The company reported ($0.11) EPS for the quarter, beating the consensus estimate of ($0.12) by $0.01. NuScale Power had a negative return on equity of 35.59% and a negative net margin of 3,888.70%. The firm had revenue of $0.28 million during the quarter, compared to analyst estimates of $3.66 million. During the same period in the prior year, the firm posted ($1.85) earnings per share. The business's quarterly revenue was down 96.6% compared to the same quarter last year. Sell-side analysts anticipate that NuScale Power will post -0.59 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Robert Hamady sold 20,000 shares of NuScale Power stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $7.89, for a total value of $157,800.00. Following the transaction, the chief financial officer directly owned 144,235 shares of the company's stock, valued at $1,138,014.15. The trade was a 12.18% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Shinji Fujino sold 20,000 shares of NuScale Power stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $8.86, for a total value of $177,200.00. Following the completion of the transaction, the director directly owned 17,242 shares in the company, valued at $152,764.12. This represents a 53.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 69,880 shares of company stock valued at $615,573 over the last 90 days. 1.28% of the stock is currently owned by insiders.

Institutional Investors Weigh In On NuScale Power

Several institutional investors have recently bought and sold shares of the business. Allworth Financial LP boosted its stake in shares of NuScale Power by 23.1% in the third quarter. Allworth Financial LP now owns 21,669 shares of the company's stock valued at $171,000 after purchasing an additional 4,070 shares during the period. Fifth Third Bancorp increased its stake in NuScale Power by 39.0% during the 3rd quarter. Fifth Third Bancorp now owns 65,072 shares of the company's stock worth $514,000 after buying an additional 18,247 shares during the period. AlphaCore Capital LLC purchased a new stake in NuScale Power during the 3rd quarter worth $89,000. Midwest Capital Advisors LLC purchased a new stake in NuScale Power during the 3rd quarter worth $139,000. Finally, Fulcrum Asset Management LLP lifted its holdings in NuScale Power by 6,102.3% in the 3rd quarter. Fulcrum Asset Management LLP now owns 245,486 shares of the company's stock worth $1,905,000 after buying an additional 241,528 shares in the last quarter. 78.37% of the stock is currently owned by hedge funds and other institutional investors.

More NuScale Power News

Here are the key news stories impacting NuScale Power this week:

• Positive Sentiment: NuScale said it has begun producing physical reactor modules with Doosan Enerbility, marking a shift from design and development toward manufacturing. The company cited $1.9 billion in liquidity; negotiations with the Tennessee Valley Authority (TVA) remain important to converting its plans into commercial orders. Article: SMR Q3 Earnings Call Highlights Shift to Module Manufacturing
• Positive Sentiment: The quarterly loss of $0.11 per share was slightly narrower than the $0.12 consensus estimate and substantially improved from a $1.85 loss a year earlier. NuScale also holds the only small modular reactor design approved by the U.S. Nuclear Regulatory Commission, a potential commercialization advantage. Article: NuScale Power Corp Q3 Earnings Call Highlights
• Neutral Sentiment: A broader rebound in nuclear-related stocks added support, though the move was sector-wide rather than based solely on NuScale-specific news. Article: Nuclear Stocks Rebound
• Negative Sentiment: Revenue was just $0.28 million, far below the $3.66 million expected and down 96.6% year over year, highlighting how little commercial revenue the company currently generates. Article: NuScale Reports Q3 Loss, Lags Revenue Estimates
• Negative Sentiment: Canaccord cut its price target to $11, while Cantor Fitzgerald reduced its target from $20 to $15, despite maintaining an “overweight” rating. The reductions signal continued caution about execution and the path to orders. Article: Canaccord Lowers NuScale Price Target

NuScale Power Company Profile

NuScale Power Corporation develops small modular reactor (SMR) technology for producing electricity and other forms of low-carbon energy. The company's core product is the NuScale Power Module, a compact pressurized-water reactor designed to be manufactured in a factory, transported to a site and deployed in scalable configurations.

NuScale markets its technology through the VOYGR power plant platform, which can combine multiple reactor modules to meet the needs of utilities, industrial users and other customers.

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