Key Highlights
- SMR shares have tumbled 83% from their 52-week peak of $57, currently hovering near $9.70
- Quarterly revenue plummeted 99.1% year-over-year to a mere $0.07 million
- No confirmed first commercial sale exists, and major shareholder Fluor has departed
- A planned $750 million equity offering raises concerns about shareholder dilution
- Wall Street consensus remains at “Hold” with a $13.50 average target price
Shares of NuScale Power (SMR) are currently changing hands around $9.70, representing an approximately 83% decline from the 52-week peak of $57.42. Even after this dramatic selloff, the company maintains a market capitalization near $4 billionāa substantial valuation for an enterprise generating virtually no revenue.
NuScale Power Corporation, SMR
In its most recent quarterly report, NuScale recorded merely $0.07 million in revenue, marking a staggering 99.1% decrease compared to the prior year period. This performance significantly undershot analyst expectations of $8.80 million in revenue, although the company did meet consensus EPS projections with a $0.13 per share loss.
The revenue shortfall represents just one challenge facing the company. NuScale has yet to secure a definitive first commercial sale of its small modular reactor platform, leaving its market viability unconfirmed.
Adding to investor concerns, Fluorāa significant long-term institutional stakeholderāhas completely divested its holdings. Such a departure from a prominent institutional backer typically signals trouble and has contributed to market uncertainty.
Financial Pressures and Shareholder Dilution Concerns
NuScale continues to consume cash at a rapid pace with no immediate pathway to generating profits. Wall Street forecasts project a full-year earnings per share loss of $0.64 for the current fiscal period.
Compounding these challenges, NuScale has unveiled plans for a $750 million equity offering, raising the specter of significant shareholder dilution. Additionally, the company executed a $506 million milestone payment to ENTRA1 Energy concerning a prospective SMR deployment partnership with Tennessee Valley Authority (TVA).
Recent insider trading activity has also drawn attention. CFO Robert Hamady offloaded approximately 30,000 shares in late August at $9.39 each. COO Carl Fisher disposed of more than 18,000 shares in early August. While both transactions were attributed to tax liabilities from vested equity compensation, total insider dispositions reached 68,651 shares during the past three-month period.
Institutional investor sentiment has shown more variability. Vanguard expanded its position by 40.5%, while Van ECK Associates nearly doubled its stake. Morgan Stanley also increased its holdings. Collectively, institutional and hedge fund investors control 78.37% of outstanding shares.
Analyst Perspectives and Price Targets
Wall Street remains split on NuScale’s prospects. The prevailing consensus recommendation is “Hold,” with an average price target of $13.50āsubstantially above current trading levels.
Bank of America assigns a “Neutral” rating with a $12 price objective. Truist maintains a “Hold” stance with a $10 target. Goldman Sachs established a $9 target. More bullish views come from B. Riley Financial and Canaccord Genuity, both rating the stock “Buy,” though each has recently reduced their targetsāB. Riley cutting from $19 to $15 and Canaccord lowering from $25 to $15.
Among 17 analysts tracking the stock, one rates it Strong Buy, four recommend Buy, nine suggest Hold, and three advise Sell.
The equity’s beta coefficient stands at 2.30, indicating substantial volatility in either direction. The 50-day moving average registers at $9.12, while the 200-day moving average sits at $10.80.
NuScale’s 52-week trading range spans from $7.21 to $57.42.
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