Traders Buy High Volume of Call Options on NuScale Power (NYSE:SMR)

Key Points

• Unusual options activity: Traders bought 105,525 call options on NuScale Power, about 47% above the typical volume, signaling heightened speculative interest in the stock.
• Mixed company news and sentiment: NuScale announced progress on classroom-based E2 Centers and a contract with Paragon for final design work on a safety system, but commentary around the stock remains mixed and volatility is still a concern.
• Fundamental pressure remains: The company recently missed earnings expectations, reported very weak revenue, and continues to post negative profitability metrics, while analysts’ consensus rating is only Hold with an average target price of $15.92.

NuScale Power Corporation (NYSE:SMR - Get Free Report) saw some unusual options trading on Thursday. Stock investors bought 105,525 call options on the company. This is an increase of 47% compared to the typical volume of 71,738 call options.

NuScale Power News Roundup

Here are the key news stories impacting NuScale Power this week:

• Positive Sentiment: NuScale said its E2 Centers are bringing SMR operations, control-room training, and workforce preparation into classrooms, which supports the company’s commercialization narrative and could help build a future talent pipeline. NuScale's E2 Centers Bring SMR Operations Into the Classroom
• Positive Sentiment: NuScale awarded Paragon a contract to finish final design work on the Highly Integrated Protection System for the NuScale Power Module, a small but constructive step toward advancing its reactor design and deployment readiness. Paragon Awarded Contract to Complete Final Design Work Supporting NuScale Power's Small Modular Reactor
• Positive Sentiment: Broader commentary on nuclear and hydrogen stocks highlighted NuScale as a speculative beneficiary of rising interest in nuclear power for AI-driven electricity demand, which can support investor sentiment around the name. Promising Hydrogen Stocks To Follow Today - June 17th
• Neutral Sentiment: One market commentary piece said NuScale is “impossible to ignore right now” but also warned the stock could remain volatile for the rest of the year, reinforcing that SMR remains a high-risk trading name rather than a proven cash-generating business. NuScale Is Impossible to Ignore Right Now. Here's What to Do With It.
• Negative Sentiment: Another article on NuScale presented a mixed view, saying there is one reason to buy the stock but also two reasons to sell, underscoring concerns about valuation, execution, and the company’s still-early stage of development. 1 Reason to Buy NuScale Power Stock, and 2 Reasons to Sell

Wall Street Analysts Forecast Growth

Several brokerages have commented on SMR. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of NuScale Power in a research report on Friday, March 27th. HSBC assumed coverage on shares of NuScale Power in a research note on Thursday, April 23rd. They set a "hold" rating and a $13.00 price target for the company. Cantor Fitzgerald lowered their price target on shares of NuScale Power from $55.00 to $20.00 and set an "overweight" rating on the stock in a report on Tuesday, February 24th. UBS Group dropped their price objective on NuScale Power from $20.00 to $13.00 and set a "neutral" rating on the stock in a research note on Wednesday, March 18th. Finally, Bank of America started coverage on NuScale Power in a report on Friday, May 22nd. They set a "neutral" rating and a $12.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $15.92.

Insider Activity at NuScale Power

In related news, Director Corp Fluor sold 13,500,000 shares of the business's stock in a transaction dated Tuesday, April 21st. The shares were sold at an average price of $11.81, for a total value of $159,435,000.00. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders sold 39,936,472 shares of company stock worth $472,831,169 over the last three months. Company insiders own 1.28% of the company's stock.

Hedge Funds Weigh In On NuScale Power

A number of large investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its stake in shares of NuScale Power by 40.5% during the 4th quarter. Vanguard Group Inc. now owns 15,545,018 shares of the company's stock valued at $220,273,000 after purchasing an additional 4,482,254 shares during the period. Van ECK Associates Corp grew its holdings in NuScale Power by 117.8% during the 4th quarter. Van ECK Associates Corp now owns 11,515,561 shares of the company's stock valued at $163,176,000 after buying an additional 6,227,747 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in NuScale Power by 22.6% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,310,961 shares of the company's stock valued at $263,195,000 after buying an additional 1,346,796 shares in the last quarter. Renaissance Technologies LLC purchased a new position in NuScale Power during the 1st quarter valued at about $59,141,000. Finally, Morgan Stanley increased its position in shares of NuScale Power by 81.0% during the fourth quarter. Morgan Stanley now owns 5,277,905 shares of the company's stock valued at $74,788,000 after buying an additional 2,361,532 shares during the period. 78.37% of the stock is owned by institutional investors.

NuScale Power Stock Performance

NYSE SMR traded up $1.42 during trading on Thursday, hitting $11.76. 67,374,801 shares of the company's stock traded hands, compared to its average volume of 30,759,205. The stock has a market capitalization of $4.30 billion, a price-to-earnings ratio of -4.03 and a beta of 2.20. NuScale Power has a 12-month low of $8.85 and a 12-month high of $57.42. The business has a 50 day moving average of $11.43 and a 200-day moving average of $14.20.

NuScale Power (NYSE:SMR - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.14) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.11) by ($0.03). The business had revenue of $0.56 million during the quarter, compared to the consensus estimate of $7.00 million. NuScale Power had a negative net margin of 2,066.55% and a negative return on equity of 48.88%. NuScale Power's quarterly revenue was down 95.8% compared to the same quarter last year. On average, analysts expect that NuScale Power will post -0.46 EPS for the current year.

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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