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

NuScale Power Corporation (NYSE:SMR)’s stock price gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. 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.

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 business had revenue of $0.28 million for the quarter, compared to analysts’ expectations of $3.66 million. During the same quarter last year, the firm earned ($1.85) earnings per share. The business’s revenue was down 96.6% on a year-over-year basis.

NuScale Power News Summary

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

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the company. Citigroup reduced their target price 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. Royal Bank Of Canada lowered their price target on NuScale Power from $14.00 to $10.00 and set a “sector perform” rating for the company in a report on Tuesday, August 11th. UBS Group downgraded shares of NuScale Power from a “neutral” rating to a “sell” rating and dropped their price objective for the company from $10.00 to $6.00 in a research note on Friday, September 11th. Canaccord Genuity Group set a $11.00 price objective on shares of NuScale Power in a report on Friday. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of NuScale Power in a report on Monday, September 21st. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, seven have assigned a Hold rating and five have given a Sell rating to the company. According to MarketBeat, NuScale Power currently has a consensus rating of “Hold” and an average price target of $9.15.

Insiders Place Their Bets

In related news, Director Shinji Fujino sold 20,000 shares of the stock in a transaction 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 directly owned 17,242 shares of the company’s stock, valued at approximately $152,764.12. This trade represents a 53.70% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Robert Hamady sold 20,000 shares of the firm’s stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $7.89, for a total value of $157,800.00. Following the completion of the transaction, the chief financial officer owned 144,235 shares in the company, valued at approximately $1,138,014.15. This trade represents a 12.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 69,880 shares of company stock valued at $615,573. Insiders own 1.28% of the company’s stock.

Institutional Trading of NuScale Power

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

NuScale Power Price Performance

The stock has a market capitalization of $2.17 billion, a price-to-earnings ratio of -1.73 and a beta of 2.42. The company has a 50-day simple moving average of $7.54 and a two-hundred day simple moving average of $10.63.

NuScale Power Company Profile

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.