NuScale Power's Shares Slide Amid $500M Equity Offering and Missed Earnings as Daily Volume Hits Top 500 Rank

On August 13, 2025, NuScale Power (SMR) closed at $37.07, a 2.28% decline with a daily volume of $490 million. The stock remains under pressure amid recent corporate developments. NuScale announced an at-the-market equity offering of up to $500 million, led by underwriters including UBS and TD Securities. The program allows the company to issue Class A common stock as needed, potentially diluting shareholder value. Legal counsel O’Melveny & Myers confirmed the validity of the offering, per an SEC filing signed by CFO Robert Hamady.

Second-quarter earnings exacerbated investor concerns. The company reported a $0.13 loss per share, missing expectations by 18.18%, while revenue of $8.1 million fell 31.88% below forecasts. Despite the underperformance, UBS raised its price target to $38 from $34, maintaining a Neutral rating. The firm adjusted 2025–2027 EBITDA estimates to reflect revised operating expense projections. NuScale’s financials show resilience, with a 4.22 current ratio and 71.5% gross profit margins, but profitability remains challenged by high operational costs.

A second Nuclear Regulatory Commission (NRC) approval for its small modular reactor design was highlighted as a strategic milestone. The company aims to secure U.S. customer contracts by year-end and has ongoing discussions for international projects, including a potential Romania deal expected to conclude by early 2027. However, near-term execution risks and capital allocation decisions will likely influence investor sentiment ahead of the November 2025 earnings report.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to the present resulted in a 4.17% return. This indicates a relatively simple trading strategy can perform well in a volatile market, leveraging high liquidity. However, the return may not keep pace with more sophisticated strategies or market conditions.