NuScale Power (NYSE:SMR) Hits New 12-Month Low – Should You Sell?

NuScale Power Corporation (NYSE:SMR)’s share price reached a new 52-week low on Wednesday. The stock traded as low as $5.19 and last traded at $5.0950, with a volume of 9,187,980 shares traded. The stock had previously closed at $5.37.

Key NuScale Power News

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

• Positive Sentiment: NuScale said it has moved from reactor development toward physical module manufacturing, with first-article production underway alongside Doosan Enerbility. The company highlighted $1.9 billion in liquidity; negotiations with the Tennessee Valley Authority remain important to securing commercial orders. Article: SMR Q3 Earnings Call Highlights Shift to Module Manufacturing
• Positive Sentiment: A relief rally across nuclear stocks is also providing support, with sector sentiment improving after Oklo reported a narrower-than-expected loss. Article: Nuclear stocks rebound
• Neutral Sentiment: Analyst views remain mixed: Cantor Fitzgerald lowered its target to $15 but kept an Overweight rating, while other firms also reduced their targets. Article: Cantor Fitzgerald price-target update
• Negative Sentiment: Third-quarter revenue was just $0.28 million versus analysts’ $3.66 million estimate, down 96.6% year over year. The $0.11-per-share loss was slightly better than expected, but the revenue shortfall underscores that commercialization has yet to translate into meaningful sales. Article: NuScale Q3 earnings results
• Negative Sentiment: Royal Bank of Canada cut its target from $7 to $5 and assigned a Sector Perform rating, leaving limited implied upside at the cited share price. Article: RBC price-target cut

Wall Street Analyst Weigh In

Several research firms have issued reports on SMR. Royal Bank Of Canada cut their price target on shares of NuScale Power from $7.00 to $5.00 and set a “sector perform” rating for the company in a research report on Friday. The Goldman Sachs Group reiterated a “neutral” rating and issued a $4.00 price objective on shares of NuScale Power in a report on Friday. Barclays lowered NuScale Power from an “equal weight” rating to an “underweight” rating and lowered their target price for the company from $11.00 to $5.00 in a research note on Tuesday, October 20th. B. Riley Financial dropped their target price on NuScale Power from $15.00 to $10.00 and set a “buy” rating for the company in a report on Wednesday, October 28th. Finally, UBS Group cut NuScale Power from a “neutral” rating to a “sell” rating and dropped their target price for the company from $10.00 to $6.00 in a report on Friday, September 11th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, seven have issued a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $8.77.

NuScale Power Trading Up 14.6%

The business’s fifty day simple moving average is $7.54 and its 200-day simple moving average is $10.63. The firm has a market cap of $2.15 billion, a P/E ratio of -1.71 and a beta of 2.42.

NuScale Power (NYSE:SMR) last posted its earnings results on Thursday, November 5th. The company reported ($0.11) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.12) by $0.01. NuScale Power had a negative net margin of 3,888.70% and a negative return on equity of 35.59%. The company had revenue of $0.28 million during the quarter, compared to analyst estimates of $3.66 million. During the same period in the prior year, the business posted ($1.85) earnings per share. NuScale Power’s revenue for the quarter was down 96.6% on a year-over-year basis. Analysts anticipate that NuScale Power Corporation will post -0.59 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Robert Hamady sold 20,000 shares of the business’s stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $7.89, for a total transaction of $157,800.00. Following the transaction, the chief financial officer directly owned 144,235 shares of the company’s stock, valued at approximately $1,138,014.15. The trade was a 12.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Shinji Fujino sold 20,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $8.86, for a total value of $177,200.00. Following the transaction, the director owned 17,242 shares of the company’s stock, valued at approximately $152,764.12. This represents a 53.70% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 69,880 shares of company stock worth $615,573. Corporate insiders own 1.28% of the company’s stock.

Institutional Investors Weigh In On NuScale Power

Several institutional investors and hedge funds have recently modified their holdings of the stock. Renaissance Technologies LLC bought a new position in NuScale Power during the 1st quarter valued at approximately $59,141,000. Bank of America Corp DE grew its stake in shares of NuScale Power by 33.4% in the first quarter. Bank of America Corp DE now owns 2,062,232 shares of the company’s stock worth $22,355,000 after acquiring an additional 516,097 shares during the last quarter. Swedbank AB grew its stake in shares of NuScale Power by 36.3% in the first quarter. Swedbank AB now owns 1,502,300 shares of the company’s stock worth $16,285,000 after acquiring an additional 400,240 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund bought a new position in shares of NuScale Power during the first quarter valued at $4,336,000. Finally, Empowered Funds LLC bought a new position in shares of NuScale Power during the first quarter valued at $1,404,000. 78.37% of the stock is owned by hedge funds and other institutional investors.

About NuScale Power

NuScale Power Corporation develops small modular reactor (SMR) technology for producing electricity and other forms of low-carbon energy. The company’s core product is the NuScale Power Module, a compact pressurized-water reactor designed to be manufactured in a factory, transported to a site and deployed in scalable configurations.

NuScale markets its technology through the VOYGR power plant platform, which can combine multiple reactor modules to meet the needs of utilities, industrial users and other customers.