TLDR
- NuScale Power (SMR) climbed 14.7% during trading hours to approximately $11.76, adding another 5% after the closing bell.
- UK government support for small modular reactor technology sparked optimism throughout the nuclear energy sector.
- RBC’s Chris Dendrinos maintains Sector Perform rating with $14 target, cautioning against pursuing shares at current levels.
- Ongoing class-action lawsuits related to ENTRA1 disclosure claims pose material risk, with April 20 marking the lead-plaintiff filing deadline.
- Company insiders have divested more than 14 million shares valued at approximately $171M over the past three months, with one director selling 13.5 million shares alone.
Shares of NuScale Power experienced a significant 14.7% climb on Wednesday, reaching an intraday peak of $12.02 before closing near $11.76. The upward momentum persisted beyond regular trading hours, with the stock tacking on an additional 5%. Trading activity was particularly robust, with approximately 57.5 million shares exchanging hands — representing a volume spike of roughly 119% above typical levels.
NuScale Power Corporation, SMR
The primary driver behind this rally was a newly announced UK government financial commitment aimed at expediting small modular reactor development and deployment. While NuScale itself isn’t a direct beneficiary of this funding, the announcement created a positive ripple effect throughout nuclear energy equities. Market participants interpreted the move as evidence that governmental bodies are intensifying their commitment to supporting advanced nuclear technologies.
Broader market dynamics also played a supporting role. Recent weeks have witnessed a revival in risk appetite, prompting investors to reconsider longer-duration growth narratives such as NuScale. The company operates at the intersection of several powerful investment themes — energy independence, carbon reduction targets, and the escalating power requirements of AI infrastructure and data centers — a trifecta that’s increasingly capturing market attention.
Additional momentum came from a Rolls-Royce SMR-related contract disclosure, which provided supplementary lift to US-traded small modular reactor equities across the board. NuScale likely benefited from both the positive sentiment swing and probable short-position unwinding.
RBC Urges Caution
RBC analyst Chris Dendrinos remains measured in his outlook. While acknowledging that NuScale is “headed in the right direction with incremental progress,” he emphasizes that the pathway to achieving a Final Investment Decision (FID) remains “lengthy.” His Sector Perform rating stays unchanged, though he’s adjusted his price target downward while simultaneously increasing his discount rate assumptions to account for execution uncertainty.
Dendrinos highlights that NuScale’s trajectory is substantially influenced by variables beyond management’s direct control — particularly regulatory approvals and securing third-party capital commitments. Protracted development timelines amplify the probability of shareholder dilution and complicate accurate valuation modeling. While his $14 price objective still suggests approximately 20% appreciation potential from present trading levels, he’s advising against aggressive position-building at this juncture.
Wall Street’s collective view presents a divided picture. The analyst community currently splits at 5 Buys, 6 Holds, and 1 Sell — aggregating to a Moderate Buy recommendation — with a mean price target of $17.39, suggesting approximately 48.5% upside potential contingent upon improved operational execution.
On the optimistic spectrum, Bank of America elevated the stock to Neutral with a $28 objective in January. Texas Capital adopted a more aggressive stance with a Strong Buy rating in late January. Conversely, UBS reduced its target to $13, Canaccord dramatically lowered expectations from $60 to $25, and Citigroup maintains a Sell rating with an $11.50 price target. The consensus forecast settles at $20.96.
Risks Remain Real
Underlying fundamentals continue to present challenges. NuScale’s most recent quarterly report showed earnings per share of -$0.80, significantly underperforming the -$0.10 consensus forecast. Revenue registered at just $1.81 million versus analyst expectations of $8.76 million. The company’s net margin currently stands at a deeply negative 1,130%.
Insider transaction patterns have raised eyebrows. The chief executive divested 82,667 shares in early March. One director unloaded a substantial 13.5 million shares valued at approximately $163 million in April. Aggregate insider dispositions over the trailing 90-day period total 14.1 million shares worth $171 million. Current insider ownership has contracted to merely 1.2% of outstanding shares.
Legal exposure also warrants attention. Multiple law firms are actively pursuing class-action claims connected to ENTRA1 disclosure allegations, with April 20 representing the deadline for lead-plaintiff appointment. The lawsuits contend that material misrepresentations contributed to an earlier stock decline of approximately 12%.
Technically, the 50-day moving average currently rests at $12.41, while the 200-day moving average sits at $21.21.
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