Key Highlights
- SMR shares touched an annual low of $8.85 following Director Corp Fluor’s sale of 13.5 million shares totaling approximately $163 million on April 9
- The transaction reduced Fluor’s ownership position by 33.8%, with 26.4 million shares remaining in its portfolio
- Several class-action lawsuits remain ongoing, connected to ENTRA1 disclosure claims suggesting investors suffered approximately 70% losses
- Fourth-quarter results severely underperformed expectations — reporting ($0.80) EPS versus the ($0.10) forecast, and $1.81M revenue compared to $8.76M projections
- Shares surged 11.90% on April 14 amid bargain-hunting activity, with market attention shifting toward the May 7 earnings report
NuScale Power has experienced turbulent trading conditions recently. On April 14, shares tumbled to a fresh 52-week bottom of $8.85 before staging an impressive 11.90% rally as opportunistic investors entered positions.
NuScale Power Corporation, SMR
The primary driver behind the decline was a substantial insider transaction. Director Corp Fluor executed a sale of 13.5 million shares on April 9 at a weighted average of $12.07 per share, generating approximately $162.9 million in proceeds. This transaction trimmed Fluor’s holdings by 33.8%, leaving approximately 26.4 million shares under its control.
The magnitude and timing of this divestiture spooked market participants. When a director liquidates roughly one-third of their holdings in a single transaction, it typically triggers investor concern.
By the close of trading on April 14, SMR settled at $9.59, representing a significant discount to its 200-day moving average of $21.41. The price also remains considerably beneath the 50-day moving average of $12.56. Since the start of the year, SMR has declined 32.39%.
Ongoing Litigation Compounds Investor Concerns
Beyond the insider selling activity, NuScale faces several active class-action lawsuits. Multiple legal firms — such as Faruqi & Faruqi, Rosen Law, and Levi & Korsinsky — have initiated or announced investigations surrounding ENTRA1 disclosure issues. The lead-plaintiff deadline is scheduled for April 20.
The complaints assert that ENTRA1 “veterans” lacked operational nuclear projects and maintain that shareholders experienced roughly 70% portfolio losses. This legal uncertainty continues to weigh on market sentiment.
NuScale’s latest financial performance offered little encouragement. During the fourth quarter, the company disclosed an EPS of ($0.80), falling short of the consensus projection of ($0.10) by $0.70. Revenue registered at $1.81 million, substantially below the $8.76 million analyst forecast. The company operates with a negative net margin of 1,130.26%.
Wall Street Remains Divided on Outlook
Analyst perspectives on SMR’s trajectory vary considerably. The consensus rating stands at Hold, with an average price objective of $20.96 — representing more than a 100% premium to current trading levels.
Barclays reduced its target from $45 down to $15 while maintaining an Equal Weight stance. Goldman Sachs lowered its objective from $20 to $14, preserving a Neutral designation. B. Riley maintains a Buy recommendation with a $24 target. Texas Capital moved in the opposite direction, upgrading the stock to Strong Buy in January.
Regarding institutional activity, several prominent investment firms have been accumulating shares in recent quarters. Vanguard expanded its holdings by 40.5% during Q4. Morgan Stanley boosted its stake by 81%. Van ECK nearly doubled its position, increasing holdings by 117.8%.
Institutional investors collectively control 78.37% of outstanding shares.
The April 14 recovery appears to have been fueled by short-covering activity and value-oriented buying. Market participants are now focused on the May 7 earnings conference call, where investors anticipate updates regarding the project development pipeline and potential new contract announcements.
Trading activity on April 14 exceeded 25 million shares, surpassing the typical average volume of 23.8 million shares.
