Royal Bank Of Canada Has Lowered Expectations for NuScale Power (NYSE:SMR) Stock Price

Key Points

• Royal Bank of Canada cut its price target for NuScale from $35 to $32 and kept a "sector perform" rating, implying roughly a 14.2% upside from the recent close.
• Shares fell about 7.6% to $28.02 after quarterly results that missed expectations — EPS of ($1.85) vs. consensus ($0.11) and revenue $8.24M vs. $11.29M, alongside very negative margins.
• Significant insider selling and mixed analyst sentiment: insiders sold about 15.0M shares (including a 2.37M-share director sale), analysts' consensus is "Reduce" with an average target of $37.50 and a split of Buy/Hold/Sell ratings.

NuScale Power (NYSE:SMR - Get Free Report) had its price target cut by analysts at Royal Bank Of Canada from $35.00 to $32.00 in a research report issued on Monday,Benzinga reports. The firm currently has a "sector perform" rating on the stock. Royal Bank Of Canada's price objective indicates a potential upside of 14.20% from the company's previous close.

Several other equities analysts have also recently commented on SMR. Barclays began 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 target for the company. Wall Street Zen lowered shares of NuScale Power from a "hold" rating to a "sell" rating in a research note on Saturday. Cantor Fitzgerald initiated 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. BNP Paribas cut shares of NuScale Power from a "hold" rating to a "strong sell" rating in a research report on Tuesday, October 21st. Finally, BNP Paribas Exane lowered NuScale Power from a "neutral" rating to an "underperform" rating in a report on Tuesday, October 21st. Three investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average target price of $37.50.

NuScale Power Trading Down 7.6%

Shares of SMR stock traded down $2.32 during trading hours on Monday, hitting $28.02. The company's stock had a trading volume of 14,343,558 shares, compared to its average volume of 14,045,867. The company has a 50 day moving average of $39.24 and a 200 day moving average of $36.23. The stock has a market cap of $7.98 billion, a PE ratio of -9.75 and a beta of 2.03. NuScale Power has a 12-month low of $11.08 and a 12-month high of $57.42.

NuScale Power (NYSE:SMR - Get Free Report) last released its quarterly earnings results on Thursday, November 6th. The company reported ($1.85) EPS for the quarter, missing the consensus estimate of ($0.11) by ($1.74). The firm had revenue of $8.24 million for the quarter, compared to analyst estimates of $11.29 million. NuScale Power had a negative net margin of 594.63% and a negative return on equity of 49.74%. The firm's quarterly revenue was up 1635.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.18) EPS. As a group, analysts anticipate that NuScale Power will post -0.73 earnings per share for the current fiscal year.

Insider Activity at NuScale Power

In related news, Director Corp Fluor sold 2,372,563 shares of the stock in a transaction on Friday, September 19th. The stock was sold at an average price of $43.99, for a total value of $104,369,046.37. Following the completion of the sale, the director directly owned 10,085,344 shares in the company, valued at approximately $443,654,282.56. This represents a 19.04% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last quarter, insiders have sold 15,030,641 shares of company stock valued at $605,953,415. Company insiders own 1.96% of the company's stock.

Hedge Funds Weigh In On NuScale Power

A number of hedge funds have recently bought and sold shares of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of NuScale Power by 1,220.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,845,116 shares of the company's stock worth $26,127,000 after purchasing an additional 1,705,411 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in NuScale Power by 20.3% in 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 during the last quarter. Bank of America Corp DE grew its stake in shares of NuScale Power by 80.9% in the 2nd quarter. Bank of America Corp DE now owns 2,333,248 shares of the company's stock worth $92,303,000 after purchasing an additional 1,043,676 shares during the last quarter. CloudAlpha Capital Management Limited Hong Kong bought a new stake in shares of NuScale Power in the 1st quarter worth approximately $14,271,000. Finally, Man Group plc purchased a new stake in shares of NuScale Power during the second quarter valued at $33,877,000. 78.37% of the stock is currently owned by institutional investors and hedge funds.

About NuScale Power

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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