NuScale Power (NYSE:SMR) Stock Price Down 14.2% on Disappointing Earnings

Key Points

• Shares fell 14.2% to about $32.51 after NuScale reported Q results of ($1.85) EPS (vs. ($0.11) expected) and $8.24M revenue (vs. $11.29M expected), with volume up ~49% to 20.73M shares.
• Analyst sentiment is weak with a MarketBeat consensus rating of "Reduce" and a $37.73 target (3 Buys, 7 Holds, 5 Sells), alongside recent downgrades and target cuts from multiple firms.
• Significant insider selling has occurred—15,030,641 shares worth about $606M sold in the past 90 days—while institutional investors hold roughly 78.4% of the stock.

NuScale Power Corporation (NYSE:SMR - Get Free Report)'s stock price fell 14.2% during trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $32.32 and last traded at $32.51. 20,729,914 shares changed hands during trading, an increase of 49% from the average session volume of 13,889,782 shares. The stock had previously closed at $37.91.

The company reported ($1.85) EPS for the quarter, missing analysts' consensus estimates of ($0.11) by ($1.74). The firm had revenue of $8.24 million during the quarter, compared to analysts' expectations of $11.29 million. NuScale Power had a negative net margin of 221.07% and a positive return on equity of 2.61%.

Analyst Upgrades and Downgrades

SMR has been the topic of a number of recent analyst reports. BNP Paribas Exane downgraded shares of NuScale Power from a "neutral" rating to an "underperform" rating in a research report on Tuesday, October 21st. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of NuScale Power in a research report on Wednesday, October 8th. Canaccord Genuity Group increased their target price on shares of NuScale Power from $44.00 to $60.00 and gave the company a "buy" rating in a research report on Wednesday, September 3rd. 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 on the stock. Finally, Citigroup reaffirmed a "sell" rating and issued a $37.50 target price (down from $46.00) on shares of NuScale Power in a research report on Tuesday, October 21st. Three analysts have rated the stock with a Buy rating, seven have issued a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus target price of $37.73.

Insiders Place Their Bets

In related news, Director Corp Fluor sold 87,900 shares of the stock in a transaction 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. In the last ninety days, insiders have sold 15,030,641 shares of company stock worth $605,953,415. 1.27% of the stock is owned by corporate insiders.

Institutional Trading of NuScale Power

Several hedge funds have recently made changes to their positions in the company. Harbour Investments Inc. lifted its stake in shares of NuScale Power by 21.3% in the 2nd quarter. Harbour Investments Inc. now owns 1,156 shares of the company's stock worth $46,000 after acquiring an additional 203 shares during the period. D.A. Davidson & CO. lifted its stake in shares of NuScale Power by 1.0% in the 2nd quarter. D.A. Davidson & CO. now owns 20,822 shares of the company's stock worth $824,000 after acquiring an additional 212 shares during the period. Pasadena Private Wealth LLC lifted its stake in shares of NuScale Power by 4.9% in the 3rd quarter. Pasadena Private Wealth LLC now owns 6,147 shares of the company's stock worth $221,000 after acquiring an additional 287 shares during the period. Family Capital Management Inc. lifted its stake in shares of NuScale Power by 3.5% in the 3rd quarter. Family Capital Management Inc. now owns 8,682 shares of the company's stock worth $313,000 after acquiring an additional 291 shares during the period. Finally, Cibc World Market Inc. lifted its stake in shares of NuScale Power by 3.8% in the 3rd 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 period. Institutional investors and hedge funds own 78.37% of the company's stock.

NuScale Power Trading Down 14.2%

The company has a market cap of $9.26 billion, a price-to-earnings ratio of -27.32 and a beta of 2.03. The company's 50 day moving average price is $39.41 and its 200 day moving average price is $35.85.

NuScale Power Company Profile

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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