NuScale Power (NYSE:SMR) Shares Gap Up - Here's What Happened

Key Points

• Shares gapped up: NuScale Power opened at $20.16 versus the prior close of $19.00 and last traded around $20.47 on roughly 19.6 million shares, representing a notable premarket gap higher.
• Analyst mix with a "Hold" consensus: Analysts are split (4 Buy, 9 Hold, 4 Sell) with a MarketBeat consensus rating of Hold and an average price target of $33.96 amid several recent target cuts and downgrades.
• Weak quarterly results and insider sale: The company reported an EPS of -$1.85 vs. -$0.11 expected, with negative ROE and margins and lower-than-expected revenue, and the CFO sold 40,000 shares recently (insiders now own 1.20%).

NuScale Power Corporation (NYSE:SMR - Get Free Report) shares gapped up before the market opened on Wednesday . The stock had previously closed at $19.00, but opened at $20.16. NuScale Power shares last traded at $20.4710, with a volume of 19,594,410 shares changing hands.

Analyst Upgrades and Downgrades

A number of research firms have commented on SMR. Barclays initiated 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. Weiss Ratings reiterated a "sell (d-)" rating on shares of NuScale Power in a research report on Monday, December 29th. Citigroup restated a "sell" rating and set a $37.50 price target (down from $46.00) on shares of NuScale Power in a research note on Tuesday, October 21st. B. Riley reduced their price target on shares of NuScale Power from $38.00 to $24.00 and set a "buy" rating for the company in a research report on Monday, December 22nd. Finally, BNP Paribas Exane cut shares of NuScale Power from a "neutral" rating to an "underperform" rating in a research note on Tuesday, October 21st. Four research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, NuScale Power has a consensus rating of "Hold" and an average target price of $33.96.

NuScale Power Stock Down 2.4%

The stock has a fifty day simple moving average of $18.85 and a 200 day simple moving average of $32.44. The firm has a market capitalization of $5.54 billion, a P/E ratio of -6.53 and a beta of 2.12.

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

Insider Activity at NuScale Power

In related news, CFO Robert Ramsey Hamady sold 40,000 shares of the company's stock in a transaction on Monday, December 8th. The shares were sold at an average price of $22.17, for a total transaction of $886,800.00. Following the completion of the transaction, the chief financial officer owned 46,283 shares in the company, valued at approximately $1,026,094.11. This represents a 46.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 1.20% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in SMR. Private Wealth Partners LLC raised its position in shares of NuScale Power by 39.4% in the 2nd quarter. Private Wealth Partners LLC now owns 23,000 shares of the company's stock worth $910,000 after acquiring an additional 6,500 shares in the last quarter. Intech Investment Management LLC grew its stake in NuScale Power by 72.3% in the second quarter. Intech Investment Management LLC now owns 91,362 shares of the company's stock valued at $3,614,000 after purchasing an additional 38,347 shares during the last quarter. Truist Financial Corp raised its holdings in NuScale Power by 23.3% in the second quarter. Truist Financial Corp now owns 47,645 shares of the company's stock worth $1,885,000 after purchasing an additional 9,016 shares in the last quarter. Black Swift Group LLC purchased a new stake in shares of NuScale Power during the second quarter valued at about $585,000. Finally, Geode Capital Management LLC boosted its holdings in shares of NuScale Power by 25.2% in the 2nd quarter. Geode Capital Management LLC now owns 2,854,664 shares of the company's stock valued at $112,944,000 after buying an additional 574,295 shares in the last quarter. Institutional investors 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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