NuScale Power (NYSE:SMR) Shares Gap Up After Better-Than-Expected Earnings

Shares of NuScale Power Corporation (NYSE:SMR) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $4.37, but opened at $4.88. NuScale Power shares last traded at $4.9250, with a volume of 5,759,139 shares traded.

The company reported ($0.11) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.12) by $0.01. NuScale Power had a negative return on equity of 35.59% and a negative net margin of 3,888.70%. The company had revenue of $0.28 million for the quarter, compared to analyst estimates of $3.66 million. During the same quarter last year, the company posted ($1.85) earnings per share. The business’s quarterly revenue was down 96.6% compared to the same quarter last year.

Key Headlines Impacting NuScale Power

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

• Positive Sentiment: NuScale says first-article production of reactor modules has begun with Doosan Enerbility, marking a shift from reactor design toward physical manufacturing. Its design is the only small modular reactor design approved by the U.S. Nuclear Regulatory Commission, a potential advantage as it pursues commercialization. Earnings call highlights
• Positive Sentiment: Third-quarter loss narrowed to $0.11 per share from $1.85 a year earlier and was slightly better than the cited analyst estimate of $0.12 per share. Q3 earnings report
• Neutral Sentiment: Cantor Fitzgerald cut its price target from $20 to $15 but kept an “overweight” rating. Its revised target remains well above the $4.40 reference price, though the reduction signals lower expectations. Cantor Fitzgerald rating
• Negative Sentiment: Revenue was only $0.28 million versus expectations of $3.66 million, down 96.6% year over year. The large miss underscores that manufacturing progress has not yet translated into meaningful reported revenue. Q3 results and revenue miss
• Negative Sentiment: Canaccord lowered its NuScale price target to $11, adding to the cautious analyst revisions. Canaccord price-target cut

Analysts Set New Price Targets

Several research analysts have commented on SMR shares. Citigroup cut their price target on NuScale Power from $6.50 to $4.00 and set a “sell” rating on the stock in a research report on Wednesday, October 21st. B. Riley Financial decreased their price objective on NuScale Power from $15.00 to $10.00 and set a “buy” rating for the company in a report on Wednesday, October 28th. Truist Financial decreased their price objective on NuScale Power from $10.00 to $8.00 and set a “hold” rating for the company in a report on Thursday, October 22nd. Northland Securities set a $16.00 target price on shares of NuScale Power in a research report on Thursday, August 6th. Finally, UBS Group cut shares of NuScale Power from a “neutral” rating to a “sell” rating and cut 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 assigned a Buy rating, seven have issued a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat.com, NuScale Power presently has an average rating of “Hold” and a consensus target price of $9.15.

Insider Buying and Selling

In other news, Director Shinji Fujino sold 20,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The stock was 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. The trade was a 53.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Robert Hamady sold 29,880 shares of the company’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $9.39, for a total value of $280,573.20. Following the sale, the chief financial officer owned 124,235 shares of the company’s stock, valued at $1,166,566.65. This trade represents a 19.39% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 69,880 shares of company stock worth $615,573. Corporate insiders own 1.28% of the company’s stock.

Hedge Funds Weigh In On NuScale Power

Large investors have recently bought and sold shares of the company. Fifth Third Bancorp lifted its stake in shares of NuScale Power by 39.0% in the third quarter. Fifth Third Bancorp now owns 65,072 shares of the company’s stock valued at $514,000 after purchasing an additional 18,247 shares during the period. AlphaCore Capital LLC acquired a new position in NuScale Power during the third quarter worth about $89,000. Midwest Capital Advisors LLC purchased a new stake in NuScale Power in the 3rd quarter valued at approximately $139,000. Fulcrum Asset Management LLP lifted its position in shares of NuScale Power by 6,102.3% in the third quarter. Fulcrum Asset Management LLP now owns 245,486 shares of the company’s stock valued at $1,905,000 after acquiring an additional 241,528 shares in the last quarter. Finally, M Holdings Securities Inc. acquired a new stake in shares of NuScale Power during the 3rd quarter worth about $113,000. Hedge funds and other institutional investors own 78.37% of the company’s stock.

NuScale Power Price Performance

The firm has a market cap of $2.17 billion, a price-to-earnings ratio of -1.73 and a beta of 2.42. The business’s 50-day moving average price is $7.54 and its two-hundred day moving average price is $10.63.

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.