NuScale Power (NYSE:SMR) Trading Down 7.4% After Earnings Miss

Key Points

• Stock down 7.4% — NuScale plunged after reporting quarterly EPS of ($0.14) vs. consensus ($0.11) and revenue of $0.57M versus $7.0M expected, with trading volume up about 29%.
• Heavy insider selling — CEO John Lawrence Hopkins sold 82,667 shares and insiders sold 40,572,082 shares valued at $481.0M over the last quarter, leaving insiders with just 1.28% ownership.
• Analyst views tempered — Several firms cut price targets (e.g., B. Riley to $19, Canaccord to $25, Barclays to $15) and the consensus rating is "Hold" with an average price target of $19.77.

NuScale Power Corporation (NYSE:SMR - Get Free Report)'s stock price was down 7.4% during trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $12.23 and last traded at $12.5240. Approximately 36,901,480 shares were traded during trading, an increase of 29% from the average daily volume of 28,647,471 shares. The stock had previously closed at $13.52.

The company reported ($0.14) EPS for the quarter, missing the consensus estimate of ($0.11) by ($0.03). The business had revenue of $0.57 million for the quarter, compared to analysts' expectations of $7.00 million. NuScale Power had a negative return on equity of 55.23% and a negative net margin of 1,130.26%.

Wall Street Analysts Forecast Growth

Several research analysts have commented on SMR shares. B. Riley Financial decreased their price target on shares of NuScale Power from $24.00 to $19.00 and set a "buy" rating on the stock in a research note on Friday, April 24th. Canaccord Genuity Group decreased their price target on shares of NuScale Power from $60.00 to $25.00 and set a "buy" rating on the stock in a research note on Friday, February 27th. Barclays decreased their price target on shares of NuScale Power from $45.00 to $15.00 and set an "equal weight" rating on the stock in a research note on Monday, February 23rd. Zacks Research raised shares of NuScale Power from a "strong sell" rating to a "hold" rating in a research note on Friday, February 20th. Finally, TD Cowen downgraded shares of NuScale Power from a "buy" rating to a "hold" rating in a research note on Wednesday, February 11th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $19.77.

Insider Buying and Selling

In related news, CEO John Lawrence Hopkins sold 82,667 shares of NuScale Power stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $12.22, for a total value of $1,010,190.74. Following the transaction, the chief executive officer directly owned 117,018 shares of the company's stock, valued at $1,429,959.96. The trade was a 41.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Clayton Scott sold 22,478 shares of NuScale Power stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $12.22, for a total transaction of $274,681.16. Following the completion of the transaction, the insider directly owned 132,852 shares in the company, valued at approximately $1,623,451.44. The trade was a 14.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 40,572,082 shares of company stock valued at $481,029,608 over the last quarter. Company insiders own 1.28% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Parallel Advisors LLC boosted its holdings in NuScale Power by 1.8% in the first quarter. Parallel Advisors LLC now owns 59,898 shares of the company's stock valued at $649,000 after acquiring an additional 1,053 shares in the last quarter. KBC Group NV boosted its holdings in NuScale Power by 95.1% in the first quarter. KBC Group NV now owns 9,502 shares of the company's stock valued at $103,000 after acquiring an additional 4,631 shares in the last quarter. Swiss National Bank boosted its holdings in shares of NuScale Power by 20.4% during the 1st quarter. Swiss National Bank now owns 335,800 shares of the company's stock valued at $3,640,000 after buying an additional 57,000 shares in the last quarter. Spartan Wealth Advisory Services LLC bought a new stake in shares of NuScale Power during the 1st quarter valued at $143,000. Finally, Atlas Wealth LLC bought a new stake in shares of NuScale Power during the 1st quarter valued at $120,000. 78.37% of the stock is owned by hedge funds and other institutional investors.

NuScale Power Trading Down 7.4%

The stock has a market cap of $4.23 billion, a P/E ratio of -4.33 and a beta of 2.24. The stock's fifty day moving average price is $11.64 and its 200 day moving average price is $18.34.

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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