NuScale Power (NYSE:SMR) Stock Price Down 6.2% on Analyst Downgrade

Key Points

• Shares fell 6.2% after Royal Bank of Canada cut its price target from $35 to $32; trading volume jumped ~41% and the stock traded as low as $26.40 intraday.
• Earnings sharply missed — NuScale reported Q EPS of ($1.85) versus analysts' ($0.11) expectation and revenue of $8.24M versus $11.29M, leaving very negative margins and ROE.
• Heavy insider selling — Director Corp Fluor sold 2.37M shares and insiders disposed of 15.03M shares (~$606M) over the last three months, while institutional investors own ~78.4% of the stock.

Shares of NuScale Power Corporation (NYSE:SMR - Get Free Report) dropped 6.2% during mid-day trading on Tuesday after Royal Bank Of Canada lowered their price target on the stock from $35.00 to $32.00. Royal Bank Of Canada currently has a sector perform rating on the stock. NuScale Power traded as low as $26.40 and last traded at $26.6720. Approximately 19,921,094 shares changed hands during mid-day trading, an increase of 41% from the average daily volume of 14,159,063 shares. The stock had previously closed at $28.43.

A number of other equities analysts have also weighed in on SMR. Weiss Ratings restated a "sell (e+)" rating on shares of NuScale Power in a research note on Wednesday, October 8th. Barclays assumed coverage on shares of NuScale Power in a research report on Monday, September 29th. They issued an "equal weight" rating and a $45.00 price objective on the stock. BNP Paribas Exane downgraded shares of NuScale Power from a "neutral" rating to an "underperform" rating in a research note on Tuesday, October 21st. Cantor Fitzgerald started coverage on shares of NuScale Power in a research note on Tuesday, October 21st. They issued an "overweight" rating and a $55.00 price target for the company. Finally, Bank of America reissued an "underperform" rating and issued a $34.00 price target (down previously from $38.00) on shares of NuScale Power in a report on Tuesday, September 30th. Three research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat, NuScale Power has an average rating of "Reduce" and an average price target of $37.50.

Insider Buying and Selling

In other news, Director Corp Fluor sold 2,372,563 shares of the business'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 in the company, valued at $443,654,282.56. The trade was a 19.04% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Insiders sold 15,030,641 shares of company stock worth $605,953,415 over the last three months. 1.27% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On NuScale Power

A number of institutional investors and hedge funds have recently modified their holdings of SMR. Vanguard Group Inc. boosted its stake in shares of NuScale Power by 6.1% during the first quarter. Vanguard Group Inc. now owns 8,940,535 shares of the company's stock valued at $126,598,000 after purchasing an additional 512,618 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in NuScale Power by 20.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,841,836 shares of the company's stock valued at $96,880,000 after acquiring an additional 1,153,158 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of NuScale Power by 25.2% in the 2nd quarter. Geode Capital Management LLC now owns 2,854,664 shares of the company's stock valued at $112,944,000 after acquiring an additional 574,295 shares during the period. State Street Corp increased its holdings in shares of NuScale Power by 37.5% in the 2nd quarter. State Street Corp now owns 2,736,187 shares of the company's stock valued at $108,244,000 after acquiring an additional 746,667 shares during the period. Finally, Swedbank AB lifted its stake in shares of NuScale Power by 6.7% during the 1st quarter. Swedbank AB now owns 2,402,125 shares of the company's stock worth $34,014,000 after purchasing an additional 149,875 shares during the last quarter. 78.37% of the stock is owned by institutional investors.

NuScale Power Price Performance

The business has a 50-day moving average of $39.11 and a two-hundred day moving average of $36.31. The company has a market cap of $7.60 billion, a P/E ratio of -9.33 and a beta of 2.03.

NuScale Power (NYSE:SMR - Get Free Report) last posted its earnings results on Thursday, November 6th. 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 for the quarter, compared to analysts' expectations of $11.29 million. NuScale Power had a negative net margin of 594.63% and a negative return on equity of 49.74%. The company's revenue was up 1635.2% on a year-over-year basis. During the same period in the previous year, the company earned ($0.18) EPS. Equities analysts anticipate that NuScale Power Corporation will post -0.73 EPS for the current fiscal year.

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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