NuScale Power Corporation (NYSE: SMR) experienced a notable increase in its share price, rising 6% on Wednesday. The stock reached a peak of $39.35 before settling at $37.76, with trading volumes hitting approximately 14.3 million shares, a 3% uptick from its average daily volume of 13.9 million shares. This comes after the stock closed at $35.63.
Recent analyst activity has influenced market sentiment regarding NuScale Power. On Tuesday, October 21st, BNP Paribas Exane downgraded the company’s stock from a “neutral” to “underperform” status. Citigroup also reissued a “sell” rating with a revised price target of $37.50, down from $46.00. Conversely, Royal Bank of Canada and Barclays have shown a mixed outlook, with the former issuing a “sector perform” rating and a $35 target, while the latter provided an “equal weight” rating with a more optimistic $45 price target. Additionally, UBS Group raised its price target from $34.00 to $38.00 while maintaining a “neutral” rating. Currently, three analysts suggest buying the stock, seven recommend holding it, and five advise selling. The consensus rating is “Reduce” with a price target of $37.73.
NuScale Power reported its quarterly earnings on August 7th, revealing a loss of $0.13 per share, slightly missing analysts’ expectations. Revenue for the quarter was $8.05 million, below the anticipated $10.49 million, depicting challenges in financial performance. Analysts forecast that the company will post -0.73 EPS for the current fiscal year.
The company is also experiencing significant insider trading activity. On September 19th, Director Corp Fluor sold 2,372,563 shares at an average price of $43.99, totaling over $104 million. This sale has prompted questions about insider confidence, as it represents a 19.04% decrease in Fluor’s ownership stake. Over the last three months, insiders have sold approximately 15 million shares valued at over $605 million, leaving them with about 1.96% ownership of the company.
Institutional investment in NuScale Power has seen notable movements. Vanguard Group increased its stake by 6.1%, acquiring additional shares valued at over $126 million. Similarly, other institutions, such as MIRAE Asset Global ETFs and Geode Capital Management, have also bolstered their holdings, which now dominate 78.37% of the stock ownership.
NuScale Power, dedicated to developing modular light water reactor power plants, continues to navigate a complex market where regulatory scrutiny, financial performance, and analyst opinions are significantly intertwined. The company’s trajectory remains one to watch as it plays a pivotal role in the evolving energy landscape.