NuScale Power (NYSE:SMR) Shares Down 15.9% – Should You Sell?

NuScale Power Corporation (NYSE:SMR) shares fell 15.9% on Friday . The company traded as low as $8.57 and last traded at $8.5850. Approximately 91,886,647 shares changed hands during mid-day trading, an increase of 196% from the average daily volume of 31,087,369 shares. The stock had previously closed at $10.21.

NuScale Power News Summary

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

• Positive Sentiment: NuScale remains positioned to benefit from continued investor interest in advanced nuclear power and small modular reactors. Recent sector momentum has previously lifted SMR and other nuclear stocks, although that support has weakened in the latest sessions. NuScale Power Stock Jumps as Nuclear Sector Gains Momentum
• Neutral Sentiment: Investors are comparing NuScale with larger or more established nuclear companies, including BWX Technologies. That comparison highlights SMR’s higher execution risk but does not represent a direct change to NuScale’s business outlook. Nuclear Energy Stock Comparison
• Negative Sentiment: UBS downgraded SMR to Sell from Neutral and reduced its price target to $6 from $10, implying substantial downside from the prior close. UBS reportedly sees roughly a $95 million EBITDA gap and questioned whether NuScale can meet its projected build timeline. UBS Downgrades NuScale and Sees EBITDA Gap
• Negative Sentiment: The bearish thesis also points to a lack of firm customer commitments and continued cash-burn risk. Those concerns are amplified by NuScale’s very limited reported quarterly revenue, sharply lower year-over-year sales, and ongoing losses, making future project awards and financing milestones especially important to investors. Concerns About NuScale Build Timeline and Customer Commitments

Analysts Set New Price Targets

A number of equities research analysts have commented on SMR shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of NuScale Power in a report on Wednesday, June 24th. Barclays reduced their price objective on NuScale Power from $15.00 to $11.00 and set an “equal weight” rating on the stock in a research report on Wednesday, July 22nd. UBS Group lowered NuScale Power from a “neutral” rating to a “sell” rating and decreased their price objective for the company from $10.00 to $6.00 in a research note on Friday. Citigroup dropped their price objective on NuScale Power from $7.50 to $6.50 and set a “sell” rating for the company in a research report on Thursday, August 6th. Finally, Bank of America assumed coverage on shares of NuScale Power in a report on Friday, May 22nd. They issued a “neutral” rating and a $12.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eight have issued a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $12.96.

NuScale Power Price Performance

The company’s 50-day moving average is $9.14 and its 200-day moving average is $10.63. The firm has a market capitalization of $3.69 billion, a price-to-earnings ratio of -2.94 and a beta of 2.30.

NuScale Power (NYSE:SMR) last posted its quarterly earnings results on Wednesday, August 5th. The company reported ($0.13) earnings per share for the quarter, hitting analysts’ consensus estimates of ($0.13). 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 $0.07 million for the quarter, compared to the consensus estimate of $8.80 million. During the same quarter last year, the firm posted ($0.11) earnings per share. NuScale Power’s revenue was down 99.1% on a year-over-year basis. Sell-side analysts anticipate that NuScale Power Corporation will post -0.64 earnings per share for the current year.

Insiders Place Their Bets

In other NuScale Power news, COO Carl M. Fisher sold 18,771 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $9.36, for a total transaction of $175,696.56. Following the completion of the sale, the chief operating officer directly owned 114,718 shares in the company, valued at $1,073,760.48. The trade was a 14.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Shinji Fujino sold 20,000 shares of NuScale Power stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $8.86, for a total transaction of $177,200.00. Following the transaction, the director owned 17,242 shares in the company, valued at $152,764.12. The trade was a 53.70% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 68,651 shares of company stock worth $633,470 over the last three months. 1.28% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Van ECK Associates Corp grew its stake in shares of NuScale Power by 117.8% in the fourth 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. Renaissance Technologies LLC acquired a new position in NuScale Power during the 1st quarter worth approximately $59,141,000. Morgan Stanley lifted its position in NuScale Power by 81.0% during the 4th quarter. Morgan Stanley now owns 5,277,905 shares of the company’s stock worth $74,788,000 after acquiring an additional 2,361,532 shares in the last quarter. Samsung C&T Corp boosted its holdings in NuScale Power by 98.9% in the 3rd quarter. Samsung C&T Corp now owns 5,185,804 shares of the company’s stock worth $186,689,000 after acquiring an additional 2,578,702 shares during the period. Finally, Voloridge Investment Management LLC purchased a new position in NuScale Power in the 4th quarter worth approximately $48,993,000. 78.37% of the stock is owned by hedge funds and other institutional investors.

NuScale Power Company Profile

NuScale Power Corporation develops small modular reactor (SMR) technology for the generation of carbon-free electricity and other energy applications. Its proprietary NuScale Power Module is a compact, factory-fabricated pressurized water reactor designed to be deployed individually or in multi-module configurations. The company’s technology is intended to support electric utilities, industrial users, and other customers seeking scalable alternatives for reliable power generation.

NuScale offers its reactor technology through the VOYGR power plant platform, along with engineering, licensing, project development, and deployment support.