Key Takeaways
- SMR shares fell to an annual low of $8.85 following Director Corp Fluor’s massive sale of 13.5M shares totaling approximately $163M on April 9
- The transaction reduced Fluor’s ownership by 33.8%, with the company retaining 26.4M shares
- Several class-action lawsuits remain ongoing, connected to ENTRA1 disclosure claims alleging roughly 70% investor losses
- Fourth-quarter results significantly underperformed — EPS posted at ($0.80) versus analyst expectations of ($0.10), while revenue reached $1.81M compared to the $8.76M forecast
- Shares surged 11.90% on April 14 amid dip-buying activity, with investors focused on the upcoming May 7 earnings report
NuScale Power has experienced significant turbulence recently. Shares plummeted to an annual low of $8.85 on April 14 before staging an impressive recovery with an 11.90% gain as bargain hunters entered the market.
NuScale Power Corporation, SMR
The primary trigger for the decline was a substantial insider transaction. Director Corp Fluor offloaded 13.5 million shares on April 9 at a weighted average price of $12.07 per share, generating approximately $162.9 million in proceeds. This transaction slashed Fluor’s position by 33.8%, leaving the entity with approximately 26.4 million shares remaining.
The magnitude and timing of this divestment spooked market participants. When a director reduces their holdings by one-third in a single transaction, it naturally triggers investor concern.
On April 14, SMR closed at $9.59, representing a steep decline from its 200-day moving average of $21.41. The stock also trades considerably below its 50-day moving average of $12.56. For the year, SMR has declined 32.39%.
Litigation Concerns Mount
Beyond the insider divestment, NuScale faces several class-action legal challenges. Multiple law firms — including Faruqi & Faruqi, Rosen Law, and Levi & Korsinsky — have initiated or announced investigations concerning the ENTRA1 disclosure. The deadline for lead-plaintiff motions is scheduled for April 20.
Plaintiff attorneys contend that ENTRA1 “veterans” lacked active nuclear projects and assert that shareholders suffered approximately 70% losses consequently. This ongoing legal uncertainty continues to weigh on investor confidence.
NuScale’s latest quarterly performance further compounded challenges. In Q4, the company delivered EPS of ($0.80), falling short of the consensus forecast of ($0.10) by $0.70. Revenue totaled $1.81 million, substantially below analyst projections of $8.76 million. The company operates with a negative net margin of 1,130.26%.
Analyst Community Remains Divided
Wall Street opinion on SMR’s trajectory remains fragmented. The consensus analyst rating stands at Hold, with an average price objective of $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 target from $20 to $14, sustaining a Neutral rating. B. Riley maintains a Buy recommendation with a $24 price target. Texas Capital reversed course, upgrading to Strong Buy in January.
Regarding institutional activity, several prominent investors have been accumulating shares in recent quarters. Vanguard expanded its holdings by 40.5% during Q4. Morgan Stanley boosted its position by 81%. Van ECK nearly doubled its stake, increasing by 117.8%.
Institutional shareholders currently control 78.37% of outstanding shares.
The April 14 rally appeared fueled by short covering and opportunistic buying. Market participants are anticipating the May 7 earnings release, where management is expected to provide updates on the project pipeline and potential contract announcements.
Trading activity on April 14 exceeded 25 million shares, surpassing the typical daily volume of 23.8 million shares.
