NuScale Power (NYSE:SMR) Trading Down 4.8% - Should You Sell?

Key Points

• NuScale Power shares fell 4.8% to about $9.38 on heavy trading volume, below both the 50-day and 200-day moving averages.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with a $13.50 price target, while recent targets were cut to $15 by B. Riley and Canaccord, and Citigroup maintained a “Sell” rating with a $6.50 target.
• The company matched quarterly EPS expectations at a loss of $0.13, but revenue plunged 99.1% year over year to $0.07 million; its COO also sold shares to cover tax-withholding obligations.

NuScale Power Corporation (NYSE:SMR - Get Free Report) shares traded down 4.8% during mid-day trading on Friday . The stock traded as low as $9.20 and last traded at $9.3810. 35,561,394 shares traded hands during mid-day trading, an increase of 17% from the average daily volume of 30,437,824 shares. The stock had previously closed at $9.85.

Analysts Set New Price Targets

Several research analysts have recently weighed in on SMR shares. B. Riley Financial reduced their price target on shares of NuScale Power from $19.00 to $15.00 and set a "buy" rating for the company in a report on Friday. The Goldman Sachs Group set a $9.00 target price on shares of NuScale Power in a research note on Friday, May 8th. Canaccord Genuity Group dropped their price target on NuScale Power from $25.00 to $15.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Citigroup reduced their price objective on NuScale Power from $7.50 to $6.50 and set a "sell" rating for the company in a research report on Thursday, August 6th. Finally, Truist Financial initiated coverage on NuScale Power in a research report on Monday, July 13th. They issued a "hold" rating and a $10.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $13.50.

NuScale Power Trading Down 4.8%

The company has a market capitalization of $3.43 billion, a price-to-earnings ratio of -3.21 and a beta of 2.26. The stock's 50 day moving average price is $9.45 and its 200 day moving average price is $11.58.

NuScale Power (NYSE:SMR - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($0.13) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.13). The business had revenue of $0.07 million for the quarter, compared to analyst estimates of $8.80 million. NuScale Power had a negative return on equity of 35.59% and a negative net margin of 3,888.70%.NuScale Power's revenue was down 99.1% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.11) earnings per share. On average, research analysts expect that NuScale Power Corporation will post -0.43 earnings per share for the current year.

Insider Activity at NuScale Power

In related news, COO Carl M. Fisher sold 18,771 shares of the firm's stock in a transaction 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 completion of the transaction, the chief operating officer directly 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 1.28% of the company's stock.

Institutional Trading of NuScale Power

A number of large investors have recently added to or reduced their stakes in the company. Van ECK Associates Corp increased its stake in shares of NuScale Power by 117.8% during the 4th 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 during the last quarter. Renaissance Technologies LLC acquired a new stake in NuScale Power in the 1st quarter valued at about $59,141,000. Vanguard Group Inc. grew its holdings in NuScale Power by 40.5% during the fourth quarter. Vanguard Group Inc. now owns 15,545,018 shares of the company's stock worth $220,273,000 after purchasing an additional 4,482,254 shares during the period. Voloridge Investment Management LLC bought a new position in NuScale Power during the fourth quarter worth about $48,993,000. Finally, Samsung C&T Corp increased its position in NuScale Power by 98.9% during the third quarter. Samsung C&T Corp now owns 5,185,804 shares of the company's stock worth $186,689,000 after buying an additional 2,578,702 shares during the last quarter. Institutional investors and hedge funds 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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