NuScale Power (NYSE:SMR) Upgraded at Zacks Research

Key Points

• Zacks upgraded NuScale from a "strong sell" to a "hold", but the broader analyst consensus remains a Reduce with several price-target cuts and a consensus target of $35.18.
• Latest quarter showed a sizable earnings miss — reported loss of $1.85 vs. consensus of ($0.11) — with very negative margins and ROE despite a 1,635% year-over-year revenue increase, leaving the company still unprofitable.
• Significant insider selling has occurred recently: the CFO sold 40,000 shares and insiders have sold over 7.15 million shares (~$277.7M) in the last 90 days, leaving insiders with about 1.2% ownership.

NuScale Power (NYSE:SMR - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other equities analysts have also commented on SMR. Royal Bank Of Canada cut their price objective on shares of NuScale Power from $35.00 to $32.00 and set a "sector perform" rating for the company in a research report on Monday, November 10th. Wall Street Zen downgraded shares of NuScale Power from a "hold" rating to a "sell" rating in a report on Saturday, November 8th. The Goldman Sachs Group decreased their price target on shares of NuScale Power from $27.00 to $23.00 and set a "neutral" rating on the stock in a report on Friday, December 12th. Barclays started coverage on 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. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of NuScale Power in a research note on Monday. Four investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Reduce" and a consensus target price of $35.18.

NuScale Power Price Performance

Shares of SMR stock opened at $15.94 on Monday. The stock has a market capitalization of $4.76 billion, a price-to-earnings ratio of -5.57 and a beta of 2.09. The company's fifty day simple moving average is $27.36 and its two-hundred day simple moving average is $35.33. NuScale Power has a 1 year low of $11.08 and a 1 year high of $57.42.

NuScale Power (NYSE:SMR - Get Free Report) last posted its quarterly 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). NuScale Power had a negative return on equity of 51.27% and a negative net margin of 594.63%.The company had revenue of $8.24 million during the quarter, compared to the consensus estimate of $11.29 million. During the same period in the previous year, the business earned ($0.18) earnings per share. NuScale Power's revenue was up 1635.2% on a year-over-year basis. Equities research analysts anticipate that NuScale Power will post -0.73 EPS for the current year.

Insider Activity

In other NuScale Power news, CFO Robert Ramsey Hamady sold 40,000 shares of the stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $22.17, for a total transaction of $886,800.00. Following the transaction, the chief financial officer directly owned 46,283 shares in the company, valued at $1,026,094.11. This trade represents a 46.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Corp Fluor sold 87,900 shares of the business's stock in a transaction that occurred on Wednesday, October 8th. The stock was sold at an average price of $39.58, for a total transaction of $3,479,082.00. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 7,156,666 shares of company stock valued at $277,733,990. Corporate insiders own 1.20% of the company's stock.

Hedge Funds Weigh In On NuScale Power

Several institutional investors and hedge funds have recently made changes to their positions in the business. CX Institutional purchased a new stake in NuScale Power during the third quarter valued at about $25,000. Nemes Rush Group LLC bought a new stake in shares of NuScale Power in the 3rd quarter valued at about $25,000. Strategic Advocates LLC purchased a new stake in NuScale Power during the 3rd quarter valued at about $25,000. Quantbot Technologies LP purchased a new stake in NuScale Power during the 1st quarter valued at about $27,000. Finally, Thurston Springer Miller Herd & Titak Inc. grew its position in NuScale Power by 84.5% during the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 784 shares of the company's stock worth $31,000 after acquiring an additional 359 shares during the last quarter. Institutional investors 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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