NuScale Power (NYSE:SMR) Shares Down 6.6% - Should You Sell?

Key Points

• NuScale Power shares fell 6.6% on Monday, trading as low as $10.18 amid heavier-than-normal volume, reflecting continued volatility in the stock.
• Recent earnings were weak: the company reported a loss of $0.14 per share versus expectations for a smaller loss, and revenue of just $0.57 million versus the $7.0 million analysts anticipated.
• Wall Street sentiment remains cautious overall, with a consensus rating of “Hold” and an average price target of $19.08; the article also notes recent insider selling, including large sales by the CEO.

NuScale Power Corporation (NYSE:SMR - Get Free Report) shares traded down 6.6% on Monday . The company traded as low as $10.18 and last traded at $10.4850. 31,657,761 shares changed hands during mid-day trading, an increase of 9% from the average session volume of 29,110,998 shares. The stock had previously closed at $11.23.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on SMR. Weiss Ratings reiterated a "sell (d-)" rating on shares of NuScale Power in a research note on Friday, March 27th. B. Riley Financial decreased their price target on NuScale Power from $24.00 to $19.00 and set a "buy" rating for the company in a report on Friday, April 24th. Texas Capital upgraded NuScale Power to a "strong-buy" rating in a report on Tuesday, January 27th. Cantor Fitzgerald cut their target price on NuScale Power from $55.00 to $20.00 and set an "overweight" rating on the stock in a research report on Tuesday, February 24th. Finally, HSBC started coverage on NuScale Power in a research note on Thursday, April 23rd. They set a "hold" rating and a $13.00 target price for the company. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $19.08.

NuScale Power Price Performance

The firm has a market cap of $3.83 billion, a price-to-earnings ratio of -3.59 and a beta of 2.24. The stock has a 50-day moving average price of $11.54 and a 200 day moving average price of $17.00.

NuScale Power (NYSE:SMR - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.14) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.03). The firm had revenue of $0.57 million for the quarter, compared to analysts' expectations of $7.00 million. NuScale Power had a negative return on equity of 48.88% and a negative net margin of 2,066.55%.The business's revenue was down 95.8% on a year-over-year basis. As a group, equities research analysts predict that NuScale Power Corporation will post -0.46 earnings per share for the current year.

Insider Buying and Selling at NuScale Power

In other news, insider Clayton Scott sold 22,478 shares of NuScale Power stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $12.22, for a total value of $274,681.16. Following the transaction, the insider directly owned 132,852 shares of the company's stock, valued at $1,623,451.44. The trade was a 14.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO John Lawrence Hopkins sold 82,667 shares of the company's stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $12.22, for a total transaction of $1,010,190.74. Following the completion of the sale, the chief executive officer owned 117,018 shares of the company's stock, valued at approximately $1,429,959.96. This trade represents a 41.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 40,572,082 shares of company stock valued at $481,029,608. 1.28% of the stock is owned by company insiders.

Hedge Funds Weigh In On NuScale Power

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Cibc World Market Inc. lifted its position in NuScale Power by 3.8% during the 3rd quarter. Cibc World Market Inc. now owns 9,000 shares of the company's stock worth $324,000 after acquiring an additional 329 shares during the period. MAI Capital Management grew its stake in shares of NuScale Power by 37.0% in the 3rd quarter. MAI Capital Management now owns 1,654 shares of the company's stock valued at $60,000 after purchasing an additional 447 shares during the last quarter. Arizona State Retirement System increased its holdings in shares of NuScale Power by 1.7% in the third quarter. Arizona State Retirement System now owns 35,523 shares of the company's stock valued at $1,279,000 after purchasing an additional 587 shares during the period. Harbour Investments Inc. increased its holdings in shares of NuScale Power by 32.4% in the fourth quarter. Harbour Investments Inc. now owns 2,419 shares of the company's stock valued at $34,000 after purchasing an additional 592 shares during the period. Finally, Principal Financial Group Inc. raised its stake in shares of NuScale Power by 7.6% during the third quarter. Principal Financial Group Inc. now owns 9,706 shares of the company's stock worth $349,000 after purchasing an additional 688 shares during the last quarter. Hedge funds and other institutional investors own 78.37% of the company's stock.

About NuScale Power

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.