Shares of NuScale Power Corporation (NYSE:SMR) experienced a significant increase on Monday, opening at $17.95 after closing at $16.31 on the previous trading day. The stock later traded at $18.8850 with a volume of over 25 million shares exchanged, reflecting heightened investor interest.
Analysts Weigh In on Stock Performance
Multiple research analysts have provided mixed ratings on NuScale Power. Citigroup reiterated a “sell” rating, adjusting its price target to $37.50, down from $46.00, in a note published on October 21, 2023. In contrast, UBS Group set a target price of $20.00 on the same day, while Bank of America maintained an “underperform” rating with a revised target price of $34.00, down from $38.00, as reported on September 30, 2023.
Additionally, Weiss Ratings assigned a “sell (d-)” rating on December 29, 2023. Meanwhile, Cantor Fitzgerald initiated coverage on October 21, establishing an “overweight” rating with a target of $55.00. Overall, of the research analysts, four rated the stock as a Buy, eight as Hold, and five as Sell, leading to an average rating of “Reduce” with a target price of $35.18, according to MarketBeat.com.
Quarterly Earnings Report Highlights Challenges
NuScale Power reported its quarterly earnings data on November 6, 2023, revealing a loss of ($1.85) earnings per share, which fell short of the consensus estimate of ($0.11) by $1.74. The company recorded revenue of $8.24 million, significantly below the anticipated $11.29 million. The firm’s negative net margin stood at 594.63%, with a return on equity of (51.27%). Despite the challenges, the revenue marked an impressive year-over-year increase of 1,635.2%, compared to ($0.18) earnings per share during the same quarter the previous year. Analysts forecast an average earnings per share of (0.73) for the current fiscal year.
In a notable insider transaction, Robert Ramsey Hamady, the Chief Financial Officer, sold 40,000 shares on December 8, 2023, at an average price of $22.17, totaling $886,800. Following this sale, Hamady holds 46,283 shares, valued at approximately $1.03 million, representing a 46.36% decline in his ownership. The transaction was disclosed in a filing with the Securities and Exchange Commission.
Institutional Investment Trends
Institutional investors have been active in adjusting their holdings in NuScale Power. Private Wealth Partners LLC increased its stake by 39.4% in the second quarter, now holding 23,000 shares valued at $910,000. Intech Investment Management LLC raised its position by 72.3%, owning 91,362 shares worth $3.61 million. Truist Financial Corp also enhanced its stake by 23.3%, acquiring 47,645 shares valued at $1.89 million.
Furthermore, Black Swift Group LLC entered a new position worth $585,000 during the second quarter, while Geode Capital Management LLC expanded its holdings by 25.2%, now owning 2.85 million shares, valued at approximately $112.94 million. Currently, 78.37% of the stock is owned by hedge funds and institutional investors.
NuScale Power, established in 2007 as a spinout from Oregon State University, is headquartered in Portland, Oregon. The company focuses on developing small modular nuclear reactors, aiming to provide zero-carbon baseload power through innovative modular technology. The flagship VOYGR reactor design features 77-megawatt electric modules equipped with passive safety systems.
As the market continues to react to both analyst ratings and quarterly performance, investors will be closely monitoring NuScale Power’s future developments and strategic initiatives in the evolving energy landscape.
