NuScale Power (NYSE:SMR) Shares Gap Up - Still a Buy?

Key Points

• Gapped up: NuScale shares jumped from $21.13 to an open of $22.62 (last trade $22.07) on heavy volume, but remain well below their 50‑day and 200‑day averages (~$37), and the stock carries a MarketBeat consensus rating of "Reduce" with an average target of $37.50.
• Missed earnings: Q3 results showed a large EPS miss (loss of $1.85 vs. $0.11 expected), a negative ROE and a -594% net margin; revenue was $8.24M (vs. $11.29M est.) despite a 1,635% YoY increase, and analysts expect FY EPS of about -$0.73.
• Insider selling: A Fluor director sold 2,372,563 shares (~$104M) and insiders have sold ~15.03M shares (~$606M) in the last 90 days, while insiders own only 1.27% of the company and institutions own 78.37%.

NuScale Power Corporation (NYSE:SMR - Get Free Report)'s share price gapped up prior to trading on Thursday . The stock had previously closed at $21.13, but opened at $22.62. NuScale Power shares last traded at $22.0730, with a volume of 6,658,658 shares traded.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on SMR shares. Barclays started coverage on NuScale Power in a research note on Monday, September 29th. They set an "equal weight" rating and a $45.00 price objective on the stock. Citigroup restated a "sell" rating and set a $37.50 target price (down from $46.00) on shares of NuScale Power in a report on Tuesday, October 21st. Canaccord Genuity Group raised their target price on shares of NuScale Power from $44.00 to $60.00 and gave the stock a "buy" rating in a report on Wednesday, September 3rd. UBS Group lifted their target price on shares of NuScale Power from $34.00 to $38.00 and gave the stock a "neutral" rating in a research note on Monday, August 11th. Finally, BNP Paribas Exane lowered shares of NuScale Power from a "neutral" rating to an "underperform" rating in a report on Tuesday, October 21st. Three equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and six have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $37.50.

NuScale Power Stock Performance

The stock's 50-day simple moving average is $37.31 and its 200-day simple moving average is $36.48. The firm has a market capitalization of $5.95 billion, a PE ratio of -7.00 and a beta of 2.03.

NuScale Power (NYSE:SMR - Get Free Report) last released its quarterly earnings results on Thursday, November 6th. The company reported ($1.85) earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 company had revenue of $8.24 million during the quarter, compared to the consensus estimate of $11.29 million. During the same period in the previous year, the company earned ($0.18) earnings per share. NuScale Power's quarterly revenue was up 1635.2% on a year-over-year basis. As a group, analysts predict that NuScale Power Corporation will post -0.73 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Corp Fluor sold 2,372,563 shares of the company's stock in a transaction dated Friday, September 19th. The shares were sold at an average price of $43.99, for a total value of $104,369,046.37. Following the sale, 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 filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders sold a total of 15,030,641 shares of company stock worth $605,953,415 over the last ninety days. Company insiders own 1.27% of the company's stock.

Institutional Investors Weigh In On NuScale Power

Several hedge funds have recently bought and sold shares of SMR. Harbour Investments Inc. increased its stake in shares of NuScale Power by 21.3% during the second quarter. Harbour Investments Inc. now owns 1,156 shares of the company's stock valued at $46,000 after purchasing an additional 203 shares in the last quarter. D.A. Davidson & CO. increased its position in NuScale Power by 1.0% during the 2nd quarter. D.A. Davidson & CO. now owns 20,822 shares of the company's stock valued at $824,000 after buying an additional 212 shares in the last quarter. Pasadena Private Wealth LLC increased its position in NuScale Power by 4.9% during the 3rd quarter. Pasadena Private Wealth LLC now owns 6,147 shares of the company's stock valued at $221,000 after buying an additional 287 shares in the last quarter. Family Capital Management Inc. raised its stake in NuScale Power by 3.5% during the third quarter. Family Capital Management Inc. now owns 8,682 shares of the company's stock valued at $313,000 after buying an additional 291 shares during the last quarter. Finally, Cibc World Market Inc. grew its stake 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 worth $324,000 after acquiring an additional 329 shares during the last quarter. Institutional investors own 78.37% of the company's stock.

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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