Key Takeaways
- SMR stock plunged to a fresh 52-week low of $8.85 following Director Corp Fluor’s sale of 13.5M shares totaling approximately $163M on April 9
- The transaction reduced Fluor’s ownership by 33.8%, with approximately 26.4M shares remaining in its portfolio
- The company faces several ongoing class-action lawsuits connected to ENTRA1 disclosure claims, with investors alleging roughly 70% losses
- Fourth-quarter results fell far short of expectations — the company posted EPS of ($0.80) versus the ($0.10) forecast, while revenue of $1.81M missed the $8.76M estimate
- Shares surged 11.90% on April 14 as bargain hunters entered, with attention turning toward the upcoming May 7 earnings announcement
NuScale Power has experienced a turbulent period recently. The stock touched a fresh 52-week bottom at $8.85 on April 14 before staging an impressive 11.90% recovery as opportunistic buyers jumped in.
NuScale Power Corporation, SMR
The primary driver behind the selloff was a substantial insider transaction. Director Corp Fluor offloaded 13.5 million shares on April 9 at a weighted average of $12.07 per share, generating approximately $162.9 million in proceeds. This massive sale slashed Fluor’s position by 33.8%, with roughly 26.4 million shares still under its control.
The magnitude and execution of this transaction spooked market participants. When a major director exits such a significant portion of its holdings in a single block trade, it naturally triggers concern among shareholders.
As of April 14’s close, SMR changed hands at $9.59, representing a substantial discount from its 200-day moving average of $21.41. The stock also trades considerably beneath its 50-day moving average of $12.56. For the year, shares have declined 32.39%.
Mounting Legal Challenges Create Additional Headwinds
Beyond the insider selling activity, NuScale confronts multiple class-action legal proceedings. Various law firms — such as Faruqi & Faruqi, Rosen Law, and Levi & Korsinsky — have either initiated or disclosed investigations surrounding the ENTRA1 disclosure matter. The deadline for lead-plaintiff motions falls on April 20.
The legal complaints contend that ENTRA1 “veterans” possessed no operational nuclear initiatives and assert that shareholders suffered approximately 70% losses. This ongoing legal uncertainty continues weighing on investor confidence.
The company’s latest quarterly performance offered little encouragement. In Q4, NuScale delivered EPS of ($0.80), falling short of the consensus projection of ($0.10) by $0.70. Total revenue reached just $1.81 million, substantially below the $8.76 million that Wall Street anticipated. The firm operates with a negative net margin of 1,130.26%.
Wall Street Remains Divided on Outlook
Analyst sentiment on SMR’s trajectory remains mixed. The consensus rating stands at Hold, while the mean price objective sits at $20.96 — representing more than a 100% premium to current trading levels.
Barclays slashed its price target from $45 down to $15 while maintaining an Equal Weight stance. Goldman Sachs reduced its objective from $20 to $14, retaining a Neutral rating. B. Riley maintains a Buy recommendation with a $24 price target. Texas Capital took a contrarian approach, upgrading to Strong Buy back in January.
Among institutional holders, several prominent firms have been accumulating shares in recent periods. Vanguard expanded its position by 40.5% during Q4. Morgan Stanley boosted its stake by 81%. Van ECK nearly doubled down, increasing holdings by 117.8%.
Institutional ownership currently represents 78.37% of outstanding shares.
The April 14 recovery appeared fueled by short-covering activity and value-oriented buyers. Market participants are now focused on the May 7 earnings conference call, where stakeholders anticipate updates regarding the project backlog and potential new contract announcements.
Trading activity on April 14 exceeded 25 million shares, surpassing the typical average of 23.8 million shares.
