NuScale Power (NYSE:SMR) Downgraded to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded NuScale Power (NYSE: SMR) from a "hold" to a "strong sell" in a note to investors.
• Several other brokers have cut ratings too, yet the consensus remains Hold with a $33.42 target; analyst views are mixed (4 Buy, 7 Hold, 4 Sell) and price targets range roughly $20–$45.
• Shares trade near $19.74 and the company reported a steep quarterly EPS miss (loss of $1.85 vs. $0.11 expected) with very negative margins and ROE; the CFO sold 40,000 shares in December, reducing his stake by about 46%.

NuScale Power (NYSE:SMR - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Tuesday,Zacks.com reports.

A number of other brokerages have also weighed in on SMR. Wall Street Zen lowered shares of NuScale Power from a "hold" rating to a "sell" rating in a research note on Saturday, November 8th. Weiss Ratings reissued a "sell (d-)" rating on shares of NuScale Power in a research report on Monday, December 29th. Barclays started coverage on shares of NuScale Power in a research report on Monday, September 29th. They issued an "equal weight" rating and a $45.00 target price for the company. Royal Bank Of Canada set a $21.00 price target on shares of NuScale Power in a research report on Tuesday. Finally, UBS Group set a $20.00 price objective on NuScale Power in a report on Tuesday, November 25th. Four analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $33.42.

NuScale Power Stock Performance

Shares of NYSE SMR opened at $19.74 on Tuesday. NuScale Power has a 52-week low of $11.08 and a 52-week high of $57.42. The stock has a market cap of $5.89 billion, a P/E ratio of -6.90 and a beta of 2.12. The firm has a 50 day moving average price of $18.73 and a 200 day moving average price of $32.35.

NuScale Power (NYSE:SMR - Get Free Report) last released its quarterly earnings data on Thursday, November 6th. The company reported ($1.85) EPS for the quarter, missing analysts' consensus estimates of ($0.11) by ($1.74). NuScale Power had a negative net margin of 594.63% and a negative return on equity of 51.27%. The firm had revenue of $8.24 million during the quarter, compared to the consensus estimate of $11.29 million. During the same quarter in the prior year, the company earned ($0.18) EPS. NuScale Power's quarterly revenue was up 1635.2% on a year-over-year basis. Analysts predict that NuScale Power will post -0.73 earnings per share for the current fiscal year.

Insider Transactions at NuScale Power

In other NuScale Power news, CFO Robert Ramsey Hamady sold 40,000 shares of the company's stock in a transaction on Monday, December 8th. The stock was sold at an average price of $22.17, for a total value of $886,800.00. Following the transaction, the chief financial officer directly owned 46,283 shares of the company's stock, valued at $1,026,094.11. This represents a 46.36% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. 1.20% of the stock is owned by company insiders.

Institutional Trading of NuScale Power

Several hedge funds and other institutional investors have recently bought and sold shares of SMR. Harbour Investments Inc. boosted its holdings in shares of NuScale Power by 21.3% during the 2nd quarter. Harbour Investments Inc. now owns 1,156 shares of the company's stock valued at $46,000 after acquiring an additional 203 shares in the last quarter. D.A. Davidson & CO. grew its stake in shares of NuScale Power by 1.0% in the second quarter. D.A. Davidson & CO. now owns 20,822 shares of the company's stock worth $824,000 after purchasing an additional 212 shares during the last quarter. Pasadena Private Wealth LLC raised its position in NuScale Power by 4.9% during the 3rd quarter. Pasadena Private Wealth LLC now owns 6,147 shares of the company's stock worth $221,000 after purchasing an additional 287 shares during the last quarter. Family Capital Management Inc. lifted its holdings in NuScale Power by 3.5% during the 3rd quarter. Family Capital Management Inc. now owns 8,682 shares of the company's stock worth $313,000 after buying an additional 291 shares during the period. Finally, Cibc World Market Inc. grew its position in shares of NuScale Power by 3.8% in the 3rd quarter. Cibc World Market Inc. now owns 9,000 shares of the company's stock valued at $324,000 after buying an additional 329 shares during the last quarter. Institutional investors and hedge funds own 78.37% of the company's stock.

NuScale Power Company Profile

NuScale Power Corporation, trading on the NYSE American under the ticker SMR, is a pioneering developer of small modular nuclear reactors. Established in 2007 as a spinout from Oregon State University, the company is headquartered in Portland, Oregon. NuScale’s mission is to deliver zero-carbon baseload power through scalable modular reactor technology, aiming to transform traditional nuclear energy deployment.

At the core of NuScale’s offering is the VOYGR small modular reactor design, featuring 77-megawatt electric (MWe) modules with passive safety systems.

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