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Amazon’s AMZN latest foray into nuclear energy shows the technology has reached a critical mass. Long known to be a critical component of carbon reduction goals, costs, time constraints, and safety were barriers. Today’s difference is Small Modular Reactor technology, which is about to blossom. The name says it all: SMR focuses on smaller, modular reactors that are more accessible, more cost-efficient to build, and scalable, a win-win for today’s big tech companies. Companies like NuScale Power Company SMR, which develops SMRs, are positioned to win as the industry blossoms. 

Big tech companies like Amazon, Microsoft MSFT, and Google GOOGL are leaning toward SMR technology to power their data centers. Data centers use the most advanced, highest-powered semiconductors and servers, consuming far more power than any technology that has come before. Recent estimates show that power consumption per AI data center is 1.5x that of their predecessors or higher, with the number of DCs growing and technology advancing rapidly. The technology is also critical to corporate carbon neutrality plans. It also has a bonus: SMRs will support the national grid, not just the power-hungry AI data centers built alongside them, reducing demand for carbon-based energy. 

What Is NuScale Technology And Why It Matters

NuScale Technology designs, manufactures, and deploys the only U.S.-regulated SMR available. Its NuScale Power Module can produce 77 megawatts of power, a tiny amount compared to US demand. Still, the NPM can be scaled up with the VOYGR production plant technology, linking up to 12 reactors into a single unit. The reactors are designed for multipurpose use, producing power and using the heat generated for other applications, including desalinization and hydrogen production. NuScale commercializes its products through a partnership with ENTRA1.

NuScale hasn’t produced significant revenue yet but is on track to ramp sales in 2025. A recent deal with Standard Power is only the tip of the iceberg. Standard Power will build two facilities to produce power for its data centers in Pennsylvania and Ohio. Standard Power is a private equity firm focused on data centers and colocation services for cryptocurrency miners, AI, and other high-power computing needs. The plans are for two 12-unit VOYGR plants for a total capacity of 1,848 MWe. 

Sell-Side Lends Support, Headwinds Are Present

Analysts are warming to NuScale in 2024 and may provide a tailwind for the market in Q4 and 2025. Among the most recent reports are initiated coverage from CSLA and Craig Hallum, which peg the stock at Moderate Buy/Buy. However, the consensus target is about 50% below the recent action, and the recent price pop puts the market above the range’s high end. Without new revisions, this stock could experience a sharp correction to realign with analysts’ sentiment. 

Institutional support is building and provides a tailwind for the market. The caveat is that ownership remains light at 15% of the shares, and quarterly activity slowed as share prices rose in 2024. Short interest is also high, likely to have amplified the upswings and cause for concern. Investors should expect volatility. Because short interest is so high, over 25% at the end of September, the short sellers may be repositioning at the new highs. This stock price could be corrected by 15% to 30% before hitting solid support levels in this scenario. 

The Technical Outlook: NuScale Powers To A New High

The price action in SMR shares is vigorous. The market surged more than 40% following Amazon’s news and could continue to increase on momentum, short-covering, and the bubble named Small Modular Reactors. The market has broken above critical resistance at $16.75, with indicators confirming the move, so the chart has a significant bullish bias. Because the indicators are low in their respective ranges, the market could continue to advance for several more weeks before topping out. 

The article “NuScale Rockets Higher on Amazon Deal: How High Can It Go?” first appeared on MarketBeat.

SmartFinancial SMBK is set to give its latest quarterly earnings report on Monday, 2024-10-21. Here’s what investors need to know before the announcement.

Analysts estimate that SmartFinancial will report an earnings per share (EPS) of $0.47.

The market awaits SmartFinancial’s announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It’s important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

The company’s EPS beat by $0.07 in the last quarter, leading to a 3.43% increase in the share price on the following day.

Tracking SmartFinancial’s Stock Performance

Shares of SmartFinancial were trading at $31.5 as of October 17. Over the last 52-week period, shares are up 54.35%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

To track all earnings releases for SmartFinancial visit their earnings calendar on our site.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.

EV startup Rivian Automotive RIVN said on Thursday that it will launch its Halloween software update starting Oct. 18, complete with spooky features and car costumes.

What Happened: The company announced the update in a video posted on social media platform X featuring actor David Hasselhoff who starred in the Knight Rider series.

Preferred Bank PFBC is preparing to release its quarterly earnings on Monday, 2024-10-21. Here’s a brief overview of what investors should keep in mind before the announcement.

Analysts expect Preferred Bank to report an earnings per share (EPS) of $2.38.

Preferred Bank bulls will hope to hear the company announce they’ve not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Overview of Past Earnings

During the last quarter, the company reported an EPS beat by $0.09, leading to a 4.68% increase in the share price on the subsequent day.

Here’s a look at Preferred Bank’s past performance and the resulting price change:

Performance of Preferred Bank Shares

Shares of Preferred Bank were trading at $85.08 as of October 17. Over the last 52-week period, shares are up 40.6%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

To track all earnings releases for Preferred Bank visit their earnings calendar on our site.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.

Whales with a lot of money to spend have taken a noticeably bearish stance on Apple.

Looking at options history for Apple AAPL we detected 100 trades.

If we consider the specifics of each trade, it is accurate to state that 38% of the investors opened trades with bullish expectations and 47% with bearish.

From the overall spotted trades, 13 are puts, for a total amount of $745,832 and 87, calls, for a total amount of $5,521,596.

Projected Price Targets

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $100.0 to $250.0 for Apple over the recent three months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Apple options trades today is 17176.67 with a total volume of 717,783.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Apple’s big money trades within a strike price range of $100.0 to $250.0 over the last 30 days.

Apple Call and Put Volume: 30-Day Overview

Largest Options Trades Observed:

About Apple

Apple is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple’s iPhone makes up a majority of the firm sales, and Apple’s other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. Apple has progressively worked to add new applications, like streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple’s sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.

Present Market Standing of Apple

• Trading volume stands at 26,764,299, with AAPL’s price up by 1.62%, positioned at $235.91.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 13 days.

What Analysts Are Saying About Apple

5 market experts have recently issued ratings for this stock, with a consensus target price of $237.4.

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* An analyst from Needham downgraded its action to Buy with a price target of $260.
* In a cautious move, an analyst from B of A Securities downgraded its rating to Buy, setting a price target of $256.
* An analyst from Needham downgraded its action to Buy with a price target of $260.
* Maintaining their stance, an analyst from Barclays continues to hold a Underweight rating for Apple, targeting a price of $186.
* An analyst from Piper Sandler has revised its rating downward to Neutral, adjusting the price target to $225.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Apple options trades with real-time alerts from Benzinga Pro.

Several large insurers have reported higher-than-expected medical costs, particularly in their government-sponsored Medicaid plans, following the end of a pandemic-era policy that required insurers to keep members enrolled. 

The Details: The end of the COVID-19 public health emergency triggered significant changes to Medicaid coverage, including the end of the continuous enrollment provision, which prevented states from disenrolling members during the pandemic. Beginning on April 1, 2023, states began the process of redetermining eligibility for all Medicaid enrollees, which created a disparity between payments from states and rising trends in medical expenses for insurers. 

Analysts at William Blair recently noted that large managed care organizations (MCOs) seem to be facing pressure regarding Medicaid utilization. At the same time, outdated data often determine the premiums they receive from states.

Read Next: FTC ‘Click-To-Cancel’ Rule Makes It Easy To End Subscriptions: What It Means For Netflix, Planet Fitness And More

Effects on Insurers: Elevance Health, Inc. ELV lowered its annual profit forecast Thursday due to persistently high medical costs tied to its Medicaid plans, which account for 20% of the company’s total medical membership. 

“The issues impacting the Medicaid business are time-bound,” Elevance CEO Gail Boudreaux said on the company’s earnings call. 

CVS Health Corp. CVS replaced its CEO on Friday and cut its third-quarter outlook to earnings of between $1.05 and $1.10, compared to the consensus estimate of $1.70. The company cited “elevated medical cost pressures in the Health Care Benefits segment” as a cause of the revision.  

UnitedHealth Group Inc. UNH reported its third-quarter results on Tuesday and also lowered its annual profit forecast as challenges across its government-supported health insurance businesses continue. 

UnitedHealth’s president and CFO John Rex pointed to “the continued timing mismatch between the current health status of Medicaid members and state rate updates” as an ongoing pressure point for the company. 

“As a result of the lagging care activity data, as well as the annual rate cycle timing, updates remain well short of current care activity, a factor that for us was more pronounced through the period than anticipated,” Rex said on the company’s post-earnings conference call. 

Read Also: 

Image: Shutterstock 

The financial news frequently emphasizes stocks with heavy insider selling, premised on the assumption that insiders believe the stock is overpriced and that they are taking profits ahead of retail investors. However, most of the time, these sales are part of a previously disclosed plan and disclosed to the SEC months in advance.  

This proves the saying that investors have many reasons to sell a stock, but the same is not necessarily true of insider buying. Typically, insiders have only one reason to buy a stock. That is, they believe it’s fundamentally undervalued.  

When you combine an undervalued stock with a price below $20, you have a chance for impressive gains. That’s the case with the three stocks on this list. Plus, you can factor in the idea that these are mid-cap stocks that offer more potential for growth than more mature large-cap stocks but remove the risk that can be found in unprofitable small-cap stocks. 

Transocean Is Well-Positioned for a Potential Oil Supercycle  

Transocean Ltd. RIG leases rigs and drilling equipment for oil companies. The company’s lease rate directly correlates to the price of oil at the time the contracts are originated. RIG stock is trading at $4.26 as of October 11, 2024.

However, even with a consensus Hold rating, analysts are forecasting a price of $6.88, which offers a 61% upside. 

An insider has bought shares on two separate occasions since its second-quarter earnings report in July. The transactions amounted to $3.5 million shares of RIG stock.  

But why should you believe the insiders? First, the macroeconomic picture is favorable. The Federal Reserve started its interest rate cutting cycle with an aggressive 50-basis point cut in September. Energy stocks are expected to benefit as lower rates tend to stimulate business activity which is generally bullish for oil. 

Second, the company signed two high-value contracts which will have over 90% of its fleet committed through 2025. And the company is well-positioned for more contracts if offshore drilling projects become less regulated in 2025. 

Crescent Energy Nears 52-Week High and New Highs Could Be Ahead 

Another mid-cap stock in the energy sector is Crescent Energy Co. CRGY. The company has a different way of playing the energy sector because its business model focuses on acquiring resources rather than developing them. Its portfolio is heavily concentrated in the Eagle Ford and Uinta Basins.  

Since the company’s second-quarter earnings report in August, different executives and insiders have purchased CRGY stock on four separate occasions.  

The purchases seem well timed, as the stock was up 31% in the month ending October 11 and is nearing its 52-week high. The short-term catalyst for the stock is its inclusion in the S&P SmallCap 600 index, which usually brings with it a flurry of buying from institutional investors whose funds use the index as a benchmark.  

That said, the longer-term catalyst for CRGY stock is similar to that of other oil companies: a resurgence in oil prices due to increased drilling activity in 2025 and beyond. Analysts give the stock a $16.20 price target, which offers investors a 20% upside.  

Forget the Robo Taxi; Mobileye May Be a Better Short-Term Buy 

When combing through the list of stocks with heavy insider buying on MarketBeat, Mobileye Global Inc. MBLY instantly caught my eye. The company, which is partially owned by Intel Corp. INTC, is a leader in autonomous driving technology.

The company’s EyeQ chips power Mobileye’s flagship SuperVision platform, consisting of 11 cameras and autonomous vehicle maps that grow smarter over time. 

MBLY stock went public in October 2022. The meme stock movement was over at that point, but for about a year, Mobileye delivered an impressive return for investors. It’s been a long fall from that point. In fact, the stock is down over 72% in 2024. The Mobileye analyst forecasts on MarketBeat show the stock with three uncomfortable sell ratings.  

Still, the stock has a consensus Hold and a $26.85 price target, which provides an upside of over 107%. Autonomous driving may still be years away (the Robo Taxi isn’t set for production until 2027), but no matter who wins the White House, the move towards non-carbon transportation is not slowing down.  

The article “3 Mid-Cap Stocks Under $20 With Insider Buying and Major Upside” first appeared on MarketBeat.