NuScale Power (NYSE:SMR) Stock Price Down 3.5% - Should You Sell?

Key Points

• NuScale Power shares fell 3.5% to about $9.07 in heavy trading, with volume 51% above the average. The stock remains below its 50-day and 200-day moving averages.
• Analysts have broadly lowered their price targets, resulting in a consensus “Hold” rating and a $13.50 target price. Ratings include one Strong Buy, four Buys, nine Holds, and three Sells.
• The company’s latest quarter showed significant operating weakness: revenue fell 99.1% year over year to $0.07 million, while it reported a loss of $0.13 per share. Two insiders also sold shares, although institutional investors own a substantial 78.37% stake.

Shares of NuScale Power Corporation (NYSE:SMR - Get Free Report) were down 3.5% during mid-day trading on Monday . The company traded as low as $8.80 and last traded at $9.0690. 46,072,172 shares were traded during mid-day trading, an increase of 51% from the average daily volume of 30,600,709 shares. The stock had previously closed at $9.40.

Analysts Set New Price Targets

Several equities research analysts recently commented on SMR shares. The Goldman Sachs Group set a $9.00 target price on NuScale Power in a report on Friday, May 8th. B. Riley Financial decreased their price target on NuScale Power from $19.00 to $15.00 and set a "buy" rating for the company in a report on Friday, August 14th. Truist Financial began coverage on shares of NuScale Power in a research report on Monday, July 13th. They issued a "hold" rating and a $10.00 price objective for the company. Canaccord Genuity Group dropped their price objective on shares of NuScale Power from $25.00 to $15.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Finally, Royal Bank Of Canada reduced their target price on shares of NuScale Power from $14.00 to $10.00 and set a "sector perform" rating on the stock in a research report on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $13.50.

NuScale Power Stock Down 3.5%

The firm has a 50 day moving average price of $9.35 and a two-hundred day moving average price of $11.19. The company has a market capitalization of $3.90 billion, a price-to-earnings ratio of -3.11 and a beta of 2.26.

NuScale Power (NYSE:SMR - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported ($0.13) EPS for the quarter, meeting analysts' consensus estimates of ($0.13). NuScale Power had a negative return on equity of 35.59% and a negative net margin of 3,888.70%.The firm had revenue of $0.07 million during the quarter, compared to the consensus estimate of $8.80 million. During the same quarter in the prior year, the business posted ($0.11) earnings per share. NuScale Power's revenue for the quarter was down 99.1% on a year-over-year basis. Analysts predict that NuScale Power Corporation will post -0.64 earnings per share for the current year.

Insider Buying and Selling

In other NuScale Power news, Director Shinji Fujino sold 20,000 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $8.86, for a total value of $177,200.00. Following the transaction, the director directly owned 17,242 shares of the company's stock, valued at $152,764.12. This represents a 53.70% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, COO Carl M. Fisher sold 18,771 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $9.36, for a total value of $175,696.56. Following the transaction, the chief operating officer owned 114,718 shares of the company's stock, valued at approximately $1,073,760.48. This trade represents a 14.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 1.28% of the company's stock.

Institutional Investors Weigh In On NuScale Power

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Van ECK Associates Corp grew its stake in NuScale Power by 117.8% in the fourth quarter. Van ECK Associates Corp now owns 11,515,561 shares of the company's stock worth $163,176,000 after purchasing an additional 6,227,747 shares in the last quarter. Renaissance Technologies LLC acquired a new stake in NuScale Power during the first quarter valued at approximately $59,141,000. Vanguard Group Inc. raised its stake in NuScale Power by 40.5% during the fourth quarter. Vanguard Group Inc. now owns 15,545,018 shares of the company's stock valued at $220,273,000 after buying an additional 4,482,254 shares in the last quarter. Voloridge Investment Management LLC bought a new position in NuScale Power during the 4th quarter worth approximately $48,993,000. Finally, California State Teachers Retirement System lifted its holdings in NuScale Power by 1,622.5% during the 2nd quarter. California State Teachers Retirement System now owns 3,455,305 shares of the company's stock worth $344,497,000 after buying an additional 3,254,704 shares during the last quarter. Institutional investors own 78.37% of the company's stock.

About NuScale Power

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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