NuScale Power Corp SMR shares are tumbling Monday after Hunterbrook issued a report suggesting the company is under investigation by the U.S. Securities and Exchange Commission.
What Happened: Hunterbrook published a report Monday morning claiming the SEC’s Division of Enforcement currently has an “active and ongoing” investigation into NuScale Power.
A spokesperson for NuScale Power told Benzinga that it’s not aware of any SEC investigation into the company.
“Hunterbrook is a known short-seller that has a vested interest in sensationalizing information to manipulate the stock market. We are unaware of any SEC investigation into NuScale or any reason for such an investigation,” a spokesperson for NuScale said.
Hunterbrook highlighted the significant stock appreciation for NuScale this year, which engages in the development of small modular reactor nuclear technology. The company’s shares are up about 165% year-to-date.
Hunterbrook suggested that the rise in shares is due to the company’s positioning as a “near-term deployable” power technology solution for data centers and AI.
“But after a decade and a half of research and development, NuScale has yet to commercialize any reactors,” Hunterbrook said.
Check This Out: EXCLUSIVE: Nano Nuclear Responds To Hunterbrook Short Report, Denounces ‘Ulterior Motives,’ Affirms Future Timelines
Hunterbrook further claimed that the U.S. Nuclear Regulatory Commission has raised “significant questions” about NuScale's risk mitigation plans for one of its reactor designs. NuScale reportedly told Hunterbrook that requests for additional information are routine. Hunterbrook claimed that it believes NuScale’s reactor approval is “particularly high-stakes” for the company.
Hunterbrook operates under two different arms: Hunterbrook Media and Hunterbrook Capital. The former operates as a media outlet publishing investigative and global reporting. The latter arm is a hedge fund, betting on or against some of the stocks on which it reports. Hunterbrook said in the report that it does not have a position in NuScale Power.
SMR Price Action: NuScale Power shares were down 19.1% at $8.77 Monday afternoon, according to Benzinga Pro.
Photo: 3844328 from Pixabay.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
