NuScale Power (SMR) Stock Climbs 14.7% on UK Nuclear Initiative Despite Warning Signs

Key Takeaways

• NuScale Power (SMR) climbed 14.7% during trading hours to approximately $11.76, followed by an additional 5% increase after the bell.
• The upward movement stemmed from UK government initiatives aimed at fast-tracking small modular reactor (SMR) projects.
• RBC’s Chris Dendrinos maintains a Sector Perform stance with a $14 target, cautioning investors about jumping into the stock.
• Ongoing class-action lawsuits related to ENTRA1 disclosure concerns pose continued uncertainty, with April 20 marking the lead-plaintiff filing cutoff.
• Company insiders have divested more than 14 million shares totaling approximately $171M over the past three months, with a director unloading 13.5 million shares alone.

Shares of NuScale Power experienced a substantial 14.7% gain on Wednesday, peaking at $12.02 before closing near $11.76. After-hours trading brought an additional 5% uptick. Trading activity was robust, with approximately 57.5 million shares traded—119% higher than typical volumes.

NuScale Power Corporation, SMR

The primary driver behind this rally was a funding initiative from the UK government aimed at accelerating the rollout of small modular reactor technology. While NuScale isn’t receiving these funds directly, the announcement elevated optimism throughout the nuclear energy sector. Market participants interpreted this as evidence that governmental bodies are becoming increasingly committed to supporting advanced nuclear infrastructure.

Broader market dynamics also played a supporting role. With improving risk sentiment in recent sessions, growth-oriented names with extended timelines like NuScale have attracted renewed investor attention. The company operates at the intersection of multiple compelling themes: energy independence, carbon reduction initiatives, and the surging power requirements of AI data centers—a narrative that resonates with current market participants.

Additional momentum came from a Rolls-Royce SMR contract announcement, which lifted the entire US-listed small modular reactor segment. NuScale captured benefits from both the sector-wide sentiment improvement and probable short position unwinding.

Analyst Maintains Conservative Outlook

RBC’s Chris Dendrinos remains cautious despite the rally. While he recognizes that NuScale is “headed in the right direction with incremental progress,” he emphasizes that the pathway to a Final Investment Decision (FID) is “lengthy.” His Sector Perform rating remains unchanged, though he adjusted his price target while increasing discount rate assumptions to account for execution uncertainties.

Dendrinos highlights that NuScale’s prospects rely significantly on external variables—particularly regulatory approvals and third-party capital commitments. Protracted development schedules increase the probability of shareholder dilution and complicate valuation efforts. While his $14 target suggests roughly 20% potential appreciation from current prices, he advises against aggressive positioning at these levels.

Wall Street’s overall view remains divided. Current analyst ratings include 5 Buys, 6 Holds, and 1 Sell—translating to a Moderate Buy consensus—with a mean price objective of $17.39, representing approximately 48.5% upside contingent on improved execution.

Among more optimistic voices, Bank of America elevated its rating to Neutral with a $28 projection in January. Texas Capital adopted a Strong Buy recommendation in late January. Conversely, UBS reduced its target to $13, Canaccord dramatically lowered its forecast from $60 to $25, and Citigroup holds a Sell rating with an $11.50 target. The aggregate consensus target stands at $20.96.

Significant Headwinds Persist

The underlying financial picture remains challenging. NuScale reported earnings per share of -$0.80 in its most recent quarter, significantly underperforming the -$0.10 consensus forecast. Revenue totaled just $1.81 million versus expectations of $8.76 million. The company’s net margin currently registers at -1,130%.

Insider transaction activity has raised eyebrows. The CEO disposed of 82,667 shares in early March. A board member sold 13.5 million shares valued at roughly $163 million in April. Combined insider sales over the past 90 days total 14.1 million shares worth $171 million. Insider ownership now represents merely 1.2% of outstanding shares.

Legal challenges also cloud the outlook. Multiple law firms are advancing class-action claims connected to ENTRA1 disclosure matters, with April 20 serving as the deadline for lead-plaintiff motions. These lawsuits allege material misrepresentations associated with a previous ~12% stock decline.

Technically, the stock’s 50-day moving average is positioned at $12.41, while the 200-day moving average sits at $21.21.