NuScale Power Shares Fall to 52‑Week Low After Director Sells $163 Million Worth of Stock

TLDR

• NuScale Power reached a new 52-week low of $8.85 following a sale of 13.5M shares for approximately $163M by Director Corp Fluor on April 9.
• Fluor’s transaction reduced its stake by 33.8%, resulting in a remaining holding of 26.4M shares.
• Several active class-action lawsuits are linked to ENTRA1 disclosure allegations, with claims that investors suffered losses of around 70%.
• Q4 earnings fell significantly short of expectations — EPS was ($0.80) compared to the ($0.10) estimate, while revenue was $1.81M versus the anticipated $8.76M.
• The stock recovered 11.90% on April 14 as traders engaged in dip-buying, with attention turning to the upcoming May 7 earnings call.

(SeaPRwire) –   NuScale Power has experienced a difficult period. The share price fell to a new 52-week low of $8.85 on April 14 before making a sharp recovery of 11.90% as buyers entered the market at lower prices.

NuScale Power Corporation, SMR

The decline was triggered by a substantial insider sale. Director Corp Fluor sold 13.5 million shares at an average price of $12.07 on April 9, generating approximately $162.9 million. This sale decreased Fluor’s ownership by 33.8%, leaving it with about 26.4 million shares.

The magnitude and timing of this sale unsettled the market. A director liquidating one-third of its holding in a single transaction often prompts scrutiny.

As of April 14, the stock last traded at $9.59, representing a significant decline from its 200-day moving average of $21.41. It is also trading substantially below its 50-day moving average of $12.56. For the year to date, SMR is down 32.39%.

Legal Pressure Adds to the Overhang

In addition to the insider sale, NuScale is contending with multiple class-action lawsuits. Law firms such as Faruqi & Faruqi, Rosen Law, and Levi & Korsinsky have filed or announced investigations concerning the ENTRA1 disclosure. The deadlines for lead plaintiffs are April 20.

The plaintiffs contend that ENTRA1 “veterans” had no active nuclear projects and allege that investors lost approximately 70% because of this. The ongoing legal issues continue to weigh on market sentiment.

NuScale’s latest earnings report exacerbated the situation. In the fourth quarter, the company posted a loss per share of ($0.80), missing the consensus estimate of ($0.10) by $0.70. Revenue was reported at $1.81 million, far below the $8.76 million analysts were forecasting. The company has a negative net margin of 1,130.26%.

Analysts Are Split

Wall Street analysts are divided on SMR’s outlook. The average rating is Hold, with an average price target of $20.96—more than double the current trading price.

Barclays reduced its target from $45 to $15, maintaining an Equal Weight rating. Goldman Sachs lowered its target from $20 to $14, reiterating a Neutral rating. B. Riley maintains a Buy rating with a $24 target. Conversely, Texas Capital upgraded the stock to Strong Buy in January.

On the institutional front, several major investors increased their positions in recent quarters. Vanguard boosted its holding by 40.5% in Q4. Morgan Stanley raised its stake by 81%. Van ECK increased its holdings by 117.8%, nearly doubling its position.

Institutional investors currently hold 78.37% of the company’s stock.

The rebound on April 14 seemed to be fueled by short covering and opportunistic buying. Market participants are now focused on the earnings call scheduled for May 7, where updates on the project pipeline and potential new contracts are anticipated.

Trading volume on April 14 exceeded 25 million shares, significantly higher than the average volume of 23.8 million.