NuScale Power (NYSE:SMR) Shares Up 6.7% - Here's Why

Key Points

• Shares rose 6.7% intraday to about $19.85 on Monday with ~22.3M shares traded (a 53% increase vs. average), though the stock remains well below its 50- and 200-day moving averages (≈$36).
• Earnings miss: NuScale reported Q3 EPS of ($1.85) versus consensus ($0.11), with very negative margins (net margin -594.6%) and ROE -51.27%; analysts forecast roughly -0.73 EPS for the fiscal year.
• Mixed analyst outlook and heavy insider selling: the consensus rating is "Reduce" with an average target of $37.50 despite some Buy calls, and insiders sold about 15.0M shares (~$606M) in the last 90 days, including a 2.37M-share sale by Corp Fluor.

NuScale Power Corporation (NYSE:SMR - Get Free Report) was up 6.7% during mid-day trading on Monday . The company traded as high as $19.98 and last traded at $19.8460. Approximately 22,337,530 shares traded hands during mid-day trading, an increase of 53% from the average daily volume of 14,593,087 shares. The stock had previously closed at $18.60.

Analyst Ratings Changes

Several analysts have commented on the stock. Wall Street Zen cut shares of NuScale Power from a "hold" rating to a "sell" rating in a research note on Saturday, November 8th. BNP Paribas Exane downgraded NuScale Power from a "neutral" rating to an "underperform" rating in a research report on Tuesday, October 21st. Weiss Ratings reissued a "sell (d-)" rating on shares of NuScale Power in a research note on Monday, November 17th. Canaccord Genuity Group raised their price target on NuScale Power from $44.00 to $60.00 and gave the company a "buy" rating in a report on Wednesday, September 3rd. Finally, Zacks Research cut NuScale Power from a "hold" rating to a "strong sell" rating in a report on Wednesday, November 12th. Three analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and six have given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Reduce" and an average target price of $37.50.

NuScale Power Trading Up 6.7%

The company has a 50-day moving average price of $36.25 and a two-hundred day moving average price of $36.66. The stock has a market cap of $5.92 billion, a P/E ratio of -6.94 and a beta of 2.03.

NuScale Power (NYSE:SMR - Get Free Report) last issued 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 quarter in the prior year, the business earned ($0.18) earnings per share. The firm's quarterly revenue was up 1635.2% compared to the same quarter last year. As a group, equities analysts forecast that NuScale Power Corporation will post -0.73 earnings per share for the current fiscal year.

Insider Buying and Selling

In other NuScale Power news, Director Corp Fluor sold 2,372,563 shares of the firm'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 completion of the sale, the director owned 10,085,344 shares of the company's stock, valued at $443,654,282.56. This trade represents a 19.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. In the last 90 days, insiders have sold 15,030,641 shares of company stock worth $605,953,415. Corporate insiders own 1.20% of the company's stock.

Institutional Investors Weigh In On NuScale Power

A number of institutional investors and hedge funds have recently modified their holdings of SMR. CIBC Bancorp USA Inc. bought a new position in NuScale Power in the 3rd quarter valued at $487,000. WBI Investments LLC purchased a new stake in shares of NuScale Power during the third quarter valued at $337,000. Advisory Services Network LLC grew its holdings in shares of NuScale Power by 27.0% in the third quarter. Advisory Services Network LLC now owns 13,459 shares of the company's stock worth $485,000 after purchasing an additional 2,863 shares during the last quarter. Kestra Private Wealth Services LLC increased its stake in NuScale Power by 11.2% in the 3rd quarter. Kestra Private Wealth Services LLC now owns 51,955 shares of the company's stock worth $1,870,000 after buying an additional 5,250 shares during the period. Finally, NewEdge Advisors LLC lifted its holdings in NuScale Power by 37.0% during the 3rd quarter. NewEdge Advisors LLC now owns 61,790 shares of the company's stock valued at $2,224,000 after buying an additional 16,703 shares in the last quarter. 78.37% of the stock is owned by institutional investors.

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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