Key Takeaways
- NuScale Power (SMR) climbed 14.7% during regular trading hours to approximately $11.76, followed by an additional 5% increase after market close.
- The surge followed a UK government initiative providing financial support for small modular reactor (SMR) advancement.
- RBC analyst Chris Dendrinos maintains a Sector Perform rating with a $14 price objective, advising caution on current momentum.
- Ongoing class-action lawsuits related to ENTRA1 disclosure claims present continued exposure, with lead-plaintiff designation closing April 20.
- Company insiders disposed of more than 14 million shares valued at approximately $171M during the past 90 days, with a board member selling 13.5 million shares.
NuScale Power shares advanced 14.7% during Wednesday’s session, reaching an intraday peak of $12.02 before closing near $11.76. The upward momentum persisted beyond regular hours, adding another 5%. Trading volume reached approximately 57.5 million shares, representing 119% above typical levels.
NuScale Power Corporation, SMR
The primary driver was a UK government financial commitment aimed at accelerating SMR implementation. While NuScale receives no direct allocation from this package, the announcement elevated sentiment throughout nuclear energy equities. Market participants interpreted the move as evidence of increasing governmental commitment to next-generation nuclear technology.
Broader equity market conditions also contributed. Risk appetite has strengthened in recent sessions, drawing attention back to longer-duration growth narratives like NuScale. The company operates at the intersection of energy independence, carbon reduction goals, and expanding AI data center power requirements — themes increasingly resonating with market participants.
A separate Rolls-Royce SMR contract disclosure provided additional momentum, lifting US-traded SMR securities across the board. NuScale captured benefits from both the sentiment improvement and probable short position unwinding.
RBC Maintains Conservative Stance
RBC analyst Chris Dendrinos continues to exercise restraint in his outlook. While recognizing NuScale is “headed in the right direction with incremental progress,” he characterizes the pathway to a Final Investment Decision (FID) as “lengthy.” His Sector Perform rating remains unchanged, and he reduced his price objective while increasing discount rate assumptions to account for execution uncertainty.
Dendrinos emphasizes that NuScale’s trajectory relies substantially on elements beyond its direct influence — including regulatory approvals and external financing arrangements. Protracted development schedules increase the probability of shareholder dilution and complicate valuation precision. His $14 price objective represents roughly 20% potential appreciation from present levels, though he advises against pursuing the current rally.
Wall Street consensus remains divided. The analyst community breakdown shows 5 Buys, 6 Holds, and 1 Sell — averaging out to a Moderate Buy — with a mean price objective of $17.39, suggesting approximately 48.5% upside potential contingent on improved execution.
Among more optimistic voices, Bank of America elevated the stock to Neutral with a $28 objective in January. Texas Capital assigned a Strong Buy rating in late January. Conversely, UBS lowered its target to $13, Canaccord reduced theirs from $60 to $25, and Citigroup maintains a Sell rating with an $11.50 objective. The consensus target stands at $20.96.
Fundamental and Legal Headwinds Persist
Operating metrics remain challenging. NuScale reported EPS of -$0.80 in its most recent quarter, substantially missing the -$0.10 consensus projection. Revenue totaled $1.81 million versus expectations of $8.76 million. Net margin stands at -1,130%.
Insider transactions have skewed heavily toward selling. The CEO disposed of 82,667 shares in early March. A director sold 13.5 million shares valued at approximately $163 million in April. Combined insider sales over 90 days: 14.1 million shares worth $171 million. Insider ownership currently represents just 1.2% of outstanding shares.
Class-action litigation remains in progress. Multiple law firms are advancing claims connected to ENTRA1 disclosure allegations, with the April 20 deadline approaching for lead-plaintiff appointment. The complaints allege material misstatements associated with an earlier approximately 12% stock decline.
The 50-day moving average currently sits at $12.41. The 200-day average stands at $21.21.
