Key Takeaways
- SMR shares reached a 52-week bottom at $8.85 following Fluor Corp’s disposal of 13.5 million shares totaling approximately $163 million on April 9
- The transaction reduced Fluor’s ownership by 33.8%, with the director retaining 26.4 million shares
- Several class-action lawsuits remain ongoing, connected to ENTRA1 disclosure matters with plaintiffs claiming approximately 70% losses
- Fourth-quarter results significantly underperformed expectations — posting ($0.80) EPS versus ($0.10) forecast, and $1.81M revenue against $8.76M projections
- Shares surged 11.90% on April 14 as bargain hunters entered positions, with attention turning to the upcoming May 7 earnings release
NuScale Power has endured a challenging period recently. Shares tumbled to a fresh 52-week bottom of $8.85 on April 14 before staging a notable recovery with an 11.90% gain as opportunistic traders capitalized on the weakness.
NuScale Power Corporation, SMR
The primary driver behind the selloff was a substantial insider transaction. Director Corp Fluor unloaded 13.5 million shares on April 9 at a weighted average of $12.07 per share, generating approximately $162.9 million in proceeds. This divestment slashed Fluor’s holdings by 33.8%, reducing its position to roughly 26.4 million shares.
The magnitude and execution of this transaction spooked market participants. When a director liquidates one-third of their position in a single block trade, it naturally prompts concern among investors.
Shares closed at $9.59 on April 14, representing a significant discount to the 200-day moving average of $21.41. The stock also trades considerably beneath its 50-day moving average of $12.56. Since the beginning of the year, SMR has declined 32.39%.
Litigation Concerns Compound Selling Pressure
Beyond the director sale, NuScale confronts several class-action lawsuits. Various law firms — such as Faruqi & Faruqi, Rosen Law, and Levi & Korsinsky — have initiated or announced investigations regarding ENTRA1 disclosure issues. The lead-plaintiff deadline is scheduled for April 20.
Litigation claims center on allegations that ENTRA1 “veterans” lacked operational nuclear projects, with investors reportedly suffering roughly 70% losses. This ongoing legal uncertainty continues to weigh on market sentiment.
NuScale’s latest financial performance compounded investor concerns. In the fourth quarter, the company delivered EPS of ($0.80), falling short of the ($0.10) consensus by $0.70. Revenue registered at $1.81 million, dramatically below analyst expectations of $8.76 million. The company operates with a negative net margin of 1,130.26%.
Wall Street Remains Divided
Analyst opinions on SMR’s trajectory remain mixed. The consensus rating stands at Hold, with an average price objective of $20.96 — representing more than 100% upside from current levels.
Barclays slashed its price target from $45 down to $15 while maintaining an Equal Weight stance. Goldman Sachs reduced its target from $20 to $14, preserving a Neutral rating. B. Riley maintains a Buy recommendation with a $24 price objective. Texas Capital bucked the trend by upgrading shares to Strong Buy in January.
Regarding institutional activity, several prominent investors actually increased exposure during recent quarters. Vanguard expanded its position by 40.5% in the fourth quarter. Morgan Stanley boosted its stake by 81%. Van ECK nearly doubled down, increasing holdings by 117.8%.
Institutional ownership currently stands at 78.37% of outstanding shares.
The April 14 recovery appeared fueled by short covering and value-oriented buying. Market participants are now focused on the May 7 earnings conference call, anticipating management updates on the project backlog and potential new contract announcements.
Trading volume on April 14 exceeded 25 million shares, surpassing the average daily volume of 23.8 million.
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