Key Takeaways
- NuScale Power (SMR) climbed 14.7% during Wednesday’s session, reaching approximately $11.76, followed by an additional 5% gain after hours.
- UK government funding aimed at expediting small modular reactor deployment sparked the rally across nuclear stocks.
- RBC’s Chris Dendrinos maintains a Sector Perform rating with a $14 target, cautioning investors about chasing momentum.
- Ongoing class-action lawsuits related to ENTRA1 disclosure claims pose continued risk, with an April 20 deadline for lead plaintiff motions.
- Company insiders have dumped more than 14 million shares valued at approximately $171M over the past three months, including 13.5 million shares sold by one director.
Shares of NuScale Power experienced a significant spike on Wednesday, climbing 14.7% and touching an intraday peak of $12.02 before closing near $11.76. After-market activity extended gains by another 5%. Trading volume surged to approximately 57.5 million shares, representing a 119% increase over typical daily turnover.
NuScale Power Corporation, SMR
The primary driver behind the rally was a UK government initiative allocating funds to accelerate small modular reactor development. While NuScale isn’t receiving direct capital from this program, the announcement generated positive momentum throughout the nuclear energy sector. Market participants interpreted the move as evidence that governments worldwide are increasingly committed to supporting advanced nuclear technology.
Broader market conditions also contributed to the upswing. Recent improvements in risk sentiment have reignited interest in longer-duration growth narratives like NuScale. The company operates at the intersection of critical themes: energy independence, carbon reduction targets, and escalating power requirements for AI infrastructure and data centers—a compelling combination attracting renewed investor attention.
Additional support came from a Rolls-Royce SMR contract announcement, which elevated sentiment across US-listed nuclear stocks. NuScale captured gains from both the positive sector dynamics and probable short-squeeze activity.
Analyst Maintains Reserved Stance
Chris Dendrinos from RBC remains measured in his outlook. While acknowledging that NuScale is “headed in the right direction with incremental progress,” he emphasizes that the path toward achieving a Final Investment Decision remains “lengthy.” His Sector Perform rating stays unchanged, though he adjusted his price target while elevating discount rate assumptions to account for execution uncertainty.
Dendrinos highlights that NuScale’s trajectory depends substantially on variables beyond management control—particularly regulatory approvals and securing external financing. Protracted development timelines increase the probability of shareholder dilution and complicate valuation modeling. His $14 target suggests roughly 20% appreciation potential from present levels, though he advises against pursuing the stock at current valuations.
Wall Street sentiment remains divided. Analyst coverage breaks down to 5 Buy ratings, 6 Holds, and 1 Sell recommendation—yielding a Moderate Buy consensus—with an average price objective of $17.39, suggesting approximately 48.5% upside contingent on improved execution.
Among the more optimistic voices, Bank of America elevated the stock to Neutral with a $28 price target in January. Texas Capital assigned a Strong Buy rating in late January. Conversely, UBS reduced its target to $13, Canaccord dramatically cut from $60 to $25, and Citigroup holds a Sell rating with an $11.50 objective. The consensus target settles at $20.96.
Significant Headwinds Persist
Operational performance remains challenging. NuScale reported quarterly earnings per share of -$0.80, significantly underperforming the -$0.10 analyst consensus. Revenue registered at just $1.81 million versus expectations of $8.76 million. Net margin stands at a staggering -1,130%.
Insider transaction activity has been notably negative. The CEO liquidated 82,667 shares in early March. One director sold 13.5 million shares valued at approximately $163 million during April. Combined insider disposals over the past 90 days total 14.1 million shares worth $171 million. Current insider ownership has declined to merely 1.2% of outstanding shares.
Legal challenges also loom large. Multiple law firms are pursuing class-action claims centered on alleged ENTRA1 disclosure violations, with April 20 marking the deadline for lead-plaintiff appointment. The lawsuits claim material misrepresentations connected to a prior ~12% stock decline.
Technically, the 50-day moving average stands at $12.41, while the 200-day moving average sits at $21.21.
