NuScale Power (SMR), the nuclear reactor maker, saw its shares plummet 11.31% in early trading on Friday following a disappointing third-quarter earnings report and the announcement of a significant stock sale agreement. The sharp decline comes as investors reassess the company's near-term growth prospects and potential dilution of existing shares.

The company reported third-quarter revenue of $8.24 million, falling short of analysts' expectations of $11.2 million, according to data compiled by LSEG. Adding to investor concerns, NuScale posted a staggering net loss of $532.65 million for the quarter ended September 30, compared to a loss of $45.55 million in the same period last year. This substantial increase in losses has raised questions about the company's financial health and path to profitability.

Further pressuring the stock, NuScale announced entering into a sales agreement for up to $750 million of Class A Common Stock, as revealed in an SEC filing. This move, while potentially providing necessary capital for operations and development, has sparked concerns about share dilution among existing stockholders. The market's reaction was swift, with the stock experiencing a significant sell-off as traders digested the implications of both the earnings miss and the stock sale agreement. Adding to the bearish sentiment, analysts from Goldman Sachs maintained a Hold rating on NuScale Power with a price target of $27.00, while Bank of America Securities reiterated a Sell rating with a $34.00 price target, further dampening investor enthusiasm for the small modular reactor designer.