NuScale Power (NYSE:SMR) Shares Gap Up - What's Next?

Key Points

• Shares gapped up — NuScale opened at $17.95 (prior close $16.31) and was trading up about 17.2% with roughly 25.16 million shares changing hands, indicating heavy short-term buying interest.
• Wall Street consensus is a "Reduce" rating with an average target of $35.18 amid mixed analyst views, while the company posted a large quarterly EPS miss (‑$1.85 vs. ‑$0.11 expected) and reports negative net margins and ROE.
• Insiders have sold about 948,761 shares (~$37.8M) in the past 90 days, even as institutional ownership is high at ~78.4% and several large funds materially increased their stakes recently.

NuScale Power Corporation (NYSE:SMR - Get Free Report)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $16.31, but opened at $17.95. NuScale Power shares last traded at $18.8850, with a volume of 25,162,137 shares trading hands.

Wall Street Analysts Forecast Growth

SMR has been the topic of several research analyst reports. Citigroup reaffirmed a "sell" rating and issued a $37.50 price target (down from $46.00) on shares of NuScale Power in a research report on Tuesday, October 21st. Royal Bank Of Canada decreased their price target on shares of NuScale Power from $35.00 to $32.00 and set a "sector perform" rating on the stock in a research report on Monday, November 10th. Zacks Research raised NuScale Power from a "strong sell" rating to a "hold" rating in a report on Monday, December 22nd. Bank of America restated an "underperform" rating and issued a $34.00 target price (down from $38.00) on shares of NuScale Power in a research note on Tuesday, September 30th. Finally, UBS Group set a $20.00 target price on NuScale Power in a research report on Tuesday, November 25th. Four investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, NuScale Power currently has a consensus rating of "Reduce" and an average target price of $35.18.

NuScale Power Trading Up 17.2%

The company has a 50 day moving average of $23.01 and a 200 day moving average of $33.99. The firm has a market cap of $5.71 billion, a price-to-earnings ratio of -6.67 and a beta of 2.12.

NuScale Power (NYSE:SMR - Get Free Report) last issued its quarterly earnings data 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 net margin of 594.63% and a negative return on equity of 51.27%. The company had revenue of $8.24 million for the quarter, compared to the consensus estimate of $11.29 million. During the same period in the previous year, the business posted ($0.18) earnings per share. The firm's revenue was up 1635.2% compared to the same quarter last year. As a group, sell-side analysts anticipate that NuScale Power Corporation will post -0.73 EPS for the current fiscal year.

Insider Activity

In other news, Director Corp Fluor sold 87,900 shares of the firm's stock in a transaction that occurred on Wednesday, October 8th. The shares were sold at an average price of $39.58, for a total transaction of $3,479,082.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Robert Ramsey Hamady sold 40,000 shares of NuScale Power stock in a transaction that occurred 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 of the company's stock, valued at $1,026,094.11. This trade represents a 46.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 948,761 shares of company stock worth $37,758,507 over the last ninety days. Insiders own 1.20% of the company's stock.

Institutional Trading of NuScale Power

Several large investors have recently made changes to their positions in SMR. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in NuScale Power by 22.6% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,310,961 shares of the company's stock worth $263,195,000 after buying an additional 1,346,796 shares in the last quarter. Van ECK Associates Corp raised its stake in shares of NuScale Power by 67.2% in the third quarter. Van ECK Associates Corp now owns 5,287,814 shares of the company's stock worth $190,362,000 after acquiring an additional 2,125,250 shares during the last quarter. Samsung C&T Corp raised its stake in shares of NuScale Power by 98.9% in the third quarter. Samsung C&T Corp now owns 5,185,804 shares of the company's stock worth $186,689,000 after acquiring an additional 2,578,702 shares during the last quarter. Clear Street Group Inc. acquired a new position in shares of NuScale Power during the third quarter worth approximately $155,616,000. Finally, Geode Capital Management LLC grew its stake in shares of NuScale Power by 25.2% during the second quarter. Geode Capital Management LLC now owns 2,854,664 shares of the company's stock valued at $112,944,000 after purchasing an additional 574,295 shares during 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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