In a recent transaction, a retired executive from NuScale Power Corp (NYSE:SMR), Robert K. Temple, sold 75,000 shares of the company at an average price of $12 per share, totaling $900,000. This move came alongside an acquisition of the same number of shares at $6.41 each, amounting to $480,750 in total.
The transactions took place on September 25, 2024, as reported in the latest filings. After the sale, Temple's direct ownership in the company decreased to 14,054 shares of Class A common stock. However, the executive also exercised options to acquire another 75,000 shares, which, following this transaction, increased his direct holdings to 115,866 shares.
The options exercised had become fully exercisable on April 1, 2024, after a vesting period that began on April 1, 2021. These options are set to expire on March 31, 2031.
The transactions reflect a significant shift in Temple's stake in the company, with a notable sale at a price that doubles the acquisition cost. NuScale Power Corp, based in Portland, Oregon, specializes in fabricated plate work and is known for its involvement in the manufacturing sector.
Investors and market watchers often look to insider buying and selling as a signal of confidence or concern about the company's prospects. Transactions such as these provide a glimpse into the actions of those with intimate knowledge of the company.
NuScale Power Corp's stock, traded under the ticker NYSE:SMR, may see investor interest following these transactions, as market participants analyze the potential implications of Temple's stock movements.
In other recent news, NuScale Power reported a net loss of $74.4 million in its Q2 2024 financial results, while maintaining a strong cash position of $136 million. Despite the loss, the company highlighted the progress of the RoPower project and a new revenue-generating agreement in Romania. Analyst firm CLSA initiated coverage on NuScale with an Outperform rating, citing the company's prospects despite the expectation of operating at a loss for several years. TD Cowen maintained its Buy rating on NuScale, emphasizing the company's ongoing cash consumption and the expected reduction in the pace of cash usage due to revenue from RoPower. NuScale's small modular reactor (SMR) technology, the only one with a design certification from the Nuclear Regulatory Commission (NRC), continues to garner interest. The company is also proceeding with Phase 2 of the front-end engineering design for the RoPower project. These developments are recent and highlight NuScale's ongoing efforts to navigate the nuclear energy market. Despite a substantial net loss, NuScale 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
To provide additional context to Robert K. Temple's recent stock transactions, let's examine some key financial metrics and insights from InvestingPro for NuScale Power Corp (NYSE:SMR).
According to InvestingPro data, NuScale Power Corp has a market capitalization of $2.96 billion as of the latest available information. The company's stock has shown significant momentum, with InvestingPro Tips highlighting a 36.82% return over the last month and an impressive 131.32% return over the past year. This strong performance aligns with Temple's decision to exercise options and sell shares at a higher price point.
However, investors should note that NuScale Power Corp faces some financial challenges. The company is not currently profitable, with a negative P/E ratio of -14.21 for the last twelve months as of Q2 2024. Additionally, an InvestingPro Tip indicates that analysts anticipate a sales decline in the current year, which could explain why insiders might be taking profits during a period of stock price strength.
On a positive note, NuScale Power Corp holds more cash than debt on its balance sheet, suggesting a solid financial position despite the lack of profitability. This could provide the company with flexibility as it navigates future challenges and opportunities in the manufacturing sector.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for NuScale Power Corp, providing a deeper understanding of the company's financial health and market position.
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