In a recent filing with the Securities and Exchange Commission, Robert K. Temple, a retired executive, reported significant stock transactions involving NuScale Power Corp (NYSE:SMR). On October 16 and 17, Temple sold a total of 127,920 shares of NuScale Power's Class A Common Stock, generating approximately $2.34 million. The sales were executed at prices ranging from $18.20 to $19.1417 per share.
Prior to these sales, Temple had exercised options to acquire 115,866 shares at a price of $6.41 per share, amounting to a total transaction value of $742,701. Following these transactions, Temple's direct ownership in NuScale Power stands at 2,000 shares.
In other recent news, NuScale Power, a leader in small modular nuclear reactor technology, reported a net loss of $74.4 million in Q2 2024, while maintaining a robust cash position of $136 million. The company has also recently entered into a significant contract with Fluor (NYSE:FLR) Transworld Services Inc. for a reactor project in Romania, marking a key step in its global expansion.
Analysts from Craig-Hallum, CLSA, and TD (TSX:TD) Cowen have maintained or initiated coverage on NuScale Power. Craig-Hallum upgraded the price target from $16.00 to $21.00, maintaining a Buy rating, while CLSA initiated coverage with an Outperform rating and TD Cowen sustained its Buy rating, emphasizing the company's ongoing cash consumption and the expected reduction in the pace of cash usage due to revenue from RoPower.
These recent developments are part of NuScale Power's ongoing efforts to revolutionize the nuclear power industry with its small modular reactors. Notably, the company's progress and strategic agreements have been closely watched by investors and industry observers alike. Despite the substantial net loss, NuScale Power has managed to reduce operational expenses from $55 million to an average of $43 million over the past two quarters, demonstrating its commitment to financial prudence.
InvestingPro Insights
The recent stock transactions by Robert K. Temple come at a time when NuScale Power Corp (NYSE:SMR) is experiencing significant market momentum. According to InvestingPro data, SMR has seen a remarkable 96.51% price return over the past month and a staggering 268.51% return over the last six months. This surge in stock price aligns with Temple's decision to sell a substantial portion of his holdings.
InvestingPro Tips highlight that SMR's stock is currently in overbought territory based on its RSI, which could explain the timing of Temple's sales. The company's stock has also demonstrated high price volatility, a factor that experienced executives often consider when making trading decisions.
Despite the recent price surge, it's worth noting that analysts anticipate a sales decline for SMR in the current year. This projection, coupled with the expectation that net income may drop this year, suggests that the company may face some headwinds in the near term.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for SMR, providing a deeper understanding of the company's financial health and market position.
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