NuScale Power (NYSE:SMR) Shares Down 9.8% After Analyst Downgrade

Key Points

• NuScale Power shares fell 9.8% after Citigroup cut its price target from $9.00 to $7.00 and maintained a sell rating. The stock traded as low as $11.48 versus a prior close of $13.29.
• Other analysts have also turned cautious on SMR, with several firms issuing hold or neutral views and the consensus rating sitting at Hold with an average price target of $19.08.
• The company’s latest earnings were weak, with EPS and revenue both missing estimates and revenue plunging 95.8% year over year. Insider selling and high stock volatility have added to investor concern.

NuScale Power Corporation (NYSE:SMR - Get Free Report)'s share price traded down 9.8% during trading on Tuesday after Citigroup lowered their price target on the stock from $9.00 to $7.00. Citigroup currently has a sell rating on the stock. NuScale Power traded as low as $11.48 and last traded at $11.9880. 40,760,708 shares were traded during trading, an increase of 40% from the average session volume of 29,138,971 shares. The stock had previously closed at $13.29.

Several other research firms have also weighed in on SMR. HSBC assumed coverage on NuScale Power in a research note on Thursday, April 23rd. They issued a "hold" rating and a $13.00 target price on the stock. UBS Group cut their target price on NuScale Power from $20.00 to $13.00 and set a "neutral" rating on the stock in a research note on Wednesday, March 18th. TD Cowen lowered NuScale Power from a "buy" rating to a "hold" rating in a research note on Wednesday, February 11th. Weiss Ratings reissued a "sell (d-)" rating on shares of NuScale Power in a research note on Friday, March 27th. Finally, Northland Securities set a $19.00 target price on NuScale Power in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, NuScale Power currently has an average rating of "Hold" and a consensus price target of $19.08.

Insider Activity

In other news, insider Clayton Scott sold 22,478 shares of the business's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $12.22, for a total value of $274,681.16. Following the sale, the insider directly owned 132,852 shares in the company, valued at $1,623,451.44. The trade was a 14.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CTO Jose N. Reyes, Jr. sold 25,951 shares of the business's stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $12.22, for a total value of $317,121.22. Following the completion of the sale, the chief technology officer owned 268,081 shares in the company, valued at approximately $3,275,949.82. This trade represents a 8.83% decrease in their ownership of the stock. 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. Company insiders own 1.28% of the company's stock.

Key NuScale Power News

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

• Positive Sentiment: The U.S. Department of Energy is reportedly considering financing billions of dollars in long-lead-time components for nuclear plants, which could support broader nuclear-sector demand and benefit companies tied to reactor development. US considering financing billions of dollars in long-lead time parts of nuclear plants, NEI says
• Neutral Sentiment: Industry coverage highlighted stronger sentiment toward nuclear power and new partnerships across the sector, which may help long-term positioning but does not directly change NuScale’s fundamentals. Partnerships, Positive Sentiment Boost U.S. Nuclear
• Neutral Sentiment: Recent commentary said NuScale’s shares had risen earlier in the week after the market began lowering expectations following its latest results, suggesting the stock remains highly sensitive to changing sentiment. Analysts Have Lowered Expectations For NuScale Power Corporation NYSE: SMR After Its Latest Results
• Negative Sentiment: Citigroup cut its price target on NuScale Power to $7.00 and kept a sell rating, signaling concerns about valuation and the company’s ability to justify its current share price. NuScale Power had its price target lowered by Citigroup Inc. from $9.00 to $7.00
• Negative Sentiment: Comments about Flur’s weak quarterly results may add to caution around nuclear-industry execution risk, especially for companies dependent on large infrastructure and project delivery cycles. Fluor Q1 Earnings & Revenues Miss Estimates, Stock Down

Institutional Trading of NuScale Power

A number of institutional investors have recently modified their holdings of the company. Family Capital Management Inc. lifted its holdings in shares of NuScale Power by 3.5% in the third quarter. Family Capital Management Inc. now owns 8,682 shares of the company's stock valued at $313,000 after purchasing an additional 291 shares in the last quarter. Cibc World Market Inc. lifted its holdings in shares of NuScale Power by 3.8% in the third quarter. Cibc World Market Inc. now owns 9,000 shares of the company's stock valued at $324,000 after purchasing an additional 329 shares in the last quarter. MAI Capital Management lifted its holdings in shares of NuScale Power by 37.0% in the third quarter. MAI Capital Management now owns 1,654 shares of the company's stock valued at $60,000 after purchasing an additional 447 shares in the last quarter. Park Avenue Securities LLC lifted its holdings in shares of NuScale Power by 1.5% in the third quarter. Park Avenue Securities LLC now owns 36,314 shares of the company's stock valued at $1,307,000 after purchasing an additional 525 shares in the last quarter. Finally, N.E.W. Advisory Services LLC lifted its holdings in shares of NuScale Power by 5.3% in the third quarter. N.E.W. Advisory Services LLC now owns 10,512 shares of the company's stock valued at $378,000 after purchasing an additional 533 shares in the last quarter. 78.37% of the stock is currently owned by institutional investors.

NuScale Power Stock Down 9.8%

The company has a market capitalization of $4.05 billion, a P/E ratio of -4.11 and a beta of 2.24. The business has a fifty day moving average price of $11.61 and a 200 day moving average price of $17.71.

NuScale Power (NYSE:SMR - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.14) EPS for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.03). The firm had revenue of $0.57 million during the quarter, compared to the consensus estimate of $7.00 million. NuScale Power had a negative net margin of 2,066.55% and a negative return on equity of 48.88%. The business's revenue for the quarter was down 95.8% compared to the same quarter last year. As a group, equities analysts forecast that NuScale Power Corporation will post -0.44 earnings per share for the current year.

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.

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