NuScale Power (NYSE:SMR) Shares Down 6.2% - What's Next?

Key Points

• Shares fell 6.2% to about $18.76 on Monday (trading low $18.54) with volume ~4.13M shares — roughly 72% below the average — and the stock now well below its 50- and 200-day moving averages (~$34.62 / $36.64).
• NuScale delivered a sharp quarterly miss with EPS ($1.85) vs. consensus ($0.11) and revenue $8.24M vs. $11.29M, producing very negative margins and a -51% ROE despite strong year-over-year revenue growth.
• Analyst sentiment is cautious (consensus rating "Reduce", average target $36.12) while insiders have sold heavily (15,000,000 shares in the last 90 days) even as institutional ownership sits at ~78.4%.

NuScale Power Corporation (NYSE:SMR - Get Free Report)'s share price dropped 6.2% during trading on Monday . The company traded as low as $18.54 and last traded at $18.76. Approximately 4,126,901 shares changed hands during mid-day trading, a decline of 72% from the average daily volume of 14,619,058 shares. The stock had previously closed at $20.00.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on SMR shares. Cantor Fitzgerald initiated coverage on NuScale Power in a research report on Tuesday, October 21st. They set an "overweight" rating and a $55.00 target price on the stock. Wall Street Zen downgraded shares of NuScale Power from a "hold" rating to a "sell" rating in a report on Saturday, November 8th. Canaccord Genuity Group raised their price objective on shares of NuScale Power from $44.00 to $60.00 and gave the company a "buy" rating in a research note on Wednesday, September 3rd. Zacks Research downgraded shares of NuScale Power from a "hold" rating to a "strong sell" rating in a research report on Wednesday, November 12th. Finally, UBS Group set a $20.00 price target on shares of NuScale Power in a research report on Tuesday, November 25th. Three analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and six have assigned a Sell rating to the stock. Based on data from MarketBeat, NuScale Power currently has a consensus rating of "Reduce" and an average price target of $36.12.

NuScale Power Stock Performance

The stock has a market cap of $5.57 billion, a P/E ratio of -6.52 and a beta of 2.09. The business has a 50 day simple moving average of $34.62 and a 200-day simple moving average of $36.64.

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

Insiders Place Their Bets

In other news, Director Corp Fluor sold 2,372,563 shares of the stock in a transaction that occurred on Friday, September 19th. The shares were sold at an average price of $43.99, for a total transaction of $104,369,046.37. Following the completion of the transaction, the director directly owned 10,085,344 shares of the company's stock, valued at $443,654,282.56. This represents a 19.04% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders have sold 15,000,000 shares of company stock valued at $604,862,902 in the last 90 days. 1.20% of the stock is owned by insiders.

Hedge Funds Weigh In On NuScale Power

Several institutional investors and hedge funds have recently bought and sold shares of SMR. Clear Street Group Inc. bought a new stake in shares of NuScale Power in the third quarter valued at $155,616,000. Samsung C&T Corp raised its stake in NuScale Power by 98.9% in the 3rd quarter. Samsung C&T Corp now owns 5,185,804 shares of the company's stock valued at $186,689,000 after acquiring an additional 2,578,702 shares during the period. Van ECK Associates Corp lifted its holdings in NuScale Power by 67.2% during the third quarter. Van ECK Associates Corp now owns 5,287,814 shares of the company's stock valued at $190,362,000 after purchasing an additional 2,125,250 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in NuScale Power by 1,220.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,845,116 shares of the company's stock valued at $26,127,000 after purchasing an additional 1,705,411 shares during the last quarter. Finally, Alyeska Investment Group L.P. bought a new position in NuScale Power during the third quarter worth about $51,985,000. 78.37% of the stock is owned by institutional investors.

NuScale Power Company Profile

NuScale Power Corporation engages in the development and sale of modular light water reactor nuclear power plants to supply energy for electrical generation, district heating, desalination, hydrogen production, and other process heat applications. It offers NuScale Power Module (NPM), a water reactor that can generate 77 megawatts of electricity (MWe); and VOYGR power plant designs for three facility sizes that are capable of housing from one to four and six or twelve NPMs.

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