TLDR
- Director Michael Stuart Klein sold 250,000 shares of Oklo stock worth $15.7 million on June 23, 2025
- Craig-Hallum analyst Eric Stine downgraded OKLO from Buy to Hold, raising price target to $59 from $43
- Stock fell 6.4% to $54.25 following the downgrade but remains up 156% year-to-date
- Company aims to deploy first nuclear power plant by end of 2027 or early 2028 but faces regulatory uncertainty
- Oklo has raised $400 million in equity funding but generates no revenue yet and reports consistent losses
Oklo Inc stock dropped 6.4% to $54.25 on Monday after Craig-Hallum analyst Eric Stine downgraded the nuclear startup from Buy to Hold. The move came on the same day director Michael Stuart Klein sold 250,000 shares worth $15.7 million.
Despite the decline, OKLO remains up 156% year-to-date and 470% over the past 12 months. The stock has benefited from growing interest in nuclear power driven by artificial intelligence’s energy demands.
Stine raised his price target to $59 from $43 while expressing caution about the company’s timeline. He pointed to “various degrees of skepticism” from industry sources regarding Oklo’s regulatory and commercial targets.
The analyst’s downgrade reflects concerns about Oklo’s unique approach. The company plans to build, own, and operate its nuclear power plants rather than just supply technology.
This puts Oklo on a regulatory path “that no company has yet taken,” according to Stine. The startup aims to deploy its first nuclear power plant at Idaho National Laboratory by the end of 2027 or early 2028.
Regulatory Hurdles Loom Large
Oklo has not yet officially applied to the U.S. Nuclear Regulatory Commission for licensing. An initial draft application was denied in 2022 due to “insufficient technical information.”
The company has since taken steps to strengthen its regulatory prospects. It has built a multi-year relationship with the regulatory commission to streamline future licensing processes.
Industry watchers remain unsure whether Oklo can meet its aggressive deployment timeline. The company’s success depends on regulatory approval within an accelerated timeframe.
Financial Position and Funding Needs
Oklo recently raised $400 million in equity funding. The company generates no revenue yet and reports consistent net losses.
Stine expects Oklo to seek additional funding given the capital-intensive nature of its business model. The company won’t generate meaningful revenue until it commercializes its technology years from now.
The startup has secured some promising agreements. It has a tentative deal with the Defense Logistics Agency to supply power to Eielson Air Force Base in Alaska.
These opportunities depend on timely success in the licensing process. Stine cautioned against putting “the cart before the horse” given regulatory uncertainties.
Oklo’s subsidiary Atomic Alchemy has commenced site characterization work in Idaho. The work involves a potential location for a commercial radioisotope production facility.
The company’s current market capitalization stands at $8.47 billion. Average trading volume reaches 18.3 million shares.
Technical analysis provides mixed signals for the stock. The negative price-to-earnings ratio highlights ongoing valuation concerns.
Recent executive orders supporting the U.S. nuclear industry provide some tailwinds. However, regulatory approval remains the key catalyst for the company’s future.
Oklo’s “build, own, operate” model aims to supply baseload zero-emissions power to AI data centers. The approach represents a departure from traditional nuclear technology suppliers.
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