NuScale Power (NYSE:SMR) Shares Gap Down on Disappointing Earnings

Key Points

• Shares of NuScale Power gapped down after hours, opening at $29.65 (prior close $32.46) and last trading around $28.19 on heavy volume of ~7.43 million shares following the earnings release.
• The company reported a steep EPS miss of ($1.85) versus a ($0.11) consensus and revenue of $8.24M versus an $11.29M estimate, producing a negative net margin of 221.07% even as revenue rose 1,635% year‑over‑year.
• Market sentiment is mixed but the consensus rating is "Reduce" with an average target of $37.73, and insiders have been heavy sellers — about 15.03 million shares sold in the last 90 days, including a 2.37M‑share sale by a Fluor director.

NuScale Power Corporation (NYSE:SMR - Get Free Report)'s share price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $32.46, but opened at $29.65. NuScale Power shares last traded at $28.1910, with a volume of 7,430,989 shares.

The company reported ($1.85) EPS for the quarter, missing the consensus estimate 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 positive return on equity of 2.61% and a negative net margin of 221.07%.The firm's revenue for the quarter was up 1635.2% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.18) earnings per share.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on SMR shares. UBS Group boosted their price objective on NuScale Power from $34.00 to $38.00 and gave the stock a "neutral" rating in a research report on Monday, August 11th. Barclays began coverage on NuScale Power in a research report on Monday, September 29th. They issued an "equal weight" rating and a $45.00 price objective on the stock. BNP Paribas cut shares of NuScale Power from a "hold" rating to a "strong sell" rating in a research report on Tuesday, October 21st. Citigroup reissued a "sell" rating and issued a $37.50 target price (down previously from $46.00) on shares of NuScale Power in a report on Tuesday, October 21st. Finally, Canaccord Genuity Group upped their price target on NuScale Power from $44.00 to $60.00 and gave the stock a "buy" rating in a research report on Wednesday, September 3rd. Three analysts have rated the stock with a Buy rating, seven have issued a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average target price of $37.73.

Insider Buying and Selling

In other news, Director Corp Fluor sold 2,372,563 shares of the stock in a transaction dated Friday, September 19th. The stock was sold at an average price of $43.99, for a total value of $104,369,046.37. Following the transaction, the director owned 10,085,344 shares in the company, valued at approximately $443,654,282.56. This represents a 19.04% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. In the last ninety days, insiders have sold 15,030,641 shares of company stock worth $605,953,415. Insiders own 1.27% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in shares of NuScale Power by 6.1% during the first quarter. Vanguard Group Inc. now owns 8,940,535 shares of the company's stock valued at $126,598,000 after purchasing an additional 512,618 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in NuScale Power by 20.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,841,836 shares of the company's stock valued at $96,880,000 after buying an additional 1,153,158 shares during the period. Geode Capital Management LLC lifted its stake in NuScale Power by 25.2% in the 2nd quarter. Geode Capital Management LLC now owns 2,854,664 shares of the company's stock worth $112,944,000 after acquiring an additional 574,295 shares in the last quarter. State Street Corp increased its holdings in shares of NuScale Power by 37.5% in the 2nd quarter. State Street Corp now owns 2,736,187 shares of the company's stock valued at $108,244,000 after purchasing an additional 746,667 shares during the period. Finally, Swedbank AB boosted its holdings in shares of NuScale Power by 6.7% during the first quarter. Swedbank AB now owns 2,402,125 shares of the company's stock worth $34,014,000 after purchasing an additional 149,875 shares during the period. Institutional investors and hedge funds own 78.37% of the company's stock.

NuScale Power Price Performance

The stock has a market cap of $7.83 billion, a price-to-earnings ratio of -23.25 and a beta of 2.03. The business has a fifty day moving average of $39.32 and a 200 day moving average of $35.82.

About NuScale Power

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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