X-Energy (NASDAQ:XE) Shares Gap Up – Here’s Why

X-Energy, Inc. (NASDAQ:XE) shares gapped up before the market opened on Monday. The stock had previously closed at $10.36, but opened at $11.08. X-Energy shares last traded at $10.57, with a volume of 1,667,690 shares trading hands.

Key X-Energy News

Here are the key news stories impacting X-Energy this week:

• Positive Sentiment: Amazon and AEP advanced plans for a 960-megawatt Indiana project. The companies signed an agreement to evaluate a 12-unit Xe-100 small modular reactor facility at a former coal site in Sullivan County. Amazon would provide development capital and plans to purchase the electricity, while AEP would help develop and connect the project to the grid. The proposed plant could eventually provide a major commercial reference project for X-Energy’s technology. X-energy, Amazon, American Electric Power Partner to Bring SMR Project to Indiana
• Positive Sentiment: The partnership could support X-Energy’s longer-term growth strategy. The companies described the Indiana initiative as part of a broader effort to bring at least 5 gigawatts of Xe-100 capacity to the grid. Amazon’s involvement also provides potential validation of X-Energy’s reactors and a possible customer for future power output. X-Energy Stock Gets a Lift From Amazon Deal After Post-IPO Slump
• Neutral Sentiment: Valuation models suggest possible upside, but estimates are not consistent. Several analyses value XE at roughly 15% to 16% below estimated future cash-flow or intrinsic value. These models could support the stock after its sell-off, but they depend heavily on assumptions about project execution, financing, commercialization and future cash generation. X Energy Stock May Be 15% Undervalued On Future Cash Flow
• Negative Sentiment: The Indiana announcement is still a feasibility effort rather than a final construction commitment. The project must clear additional technical, regulatory, financing and commercial hurdles, so it may not generate meaningful revenue soon. A separate comparison argues that Oklo offers better long-term value and that X-Energy may be overvalued relative to its growth prospects. Better Nuclear Energy Stock to Buy After the Sell-Off: Oklo vs. X-Energy

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on XE shares. Jefferies Financial Group reiterated a “hold” rating and issued a $22.00 target price on shares of X-Energy in a research note on Wednesday, June 24th. Cantor Fitzgerald reissued an “overweight” rating and issued a $38.00 target price on shares of X-Energy in a research report on Friday, August 14th. UBS Group dropped their price target on shares of X-Energy from $40.00 to $34.00 and set a “buy” rating on the stock in a research note on Wednesday, July 1st. Texas Capital upgraded shares of X-Energy to a “strong-buy” rating in a report on Monday, September 14th. Finally, Guggenheim restated a “buy” rating and set a $57.00 price target on shares of X-Energy in a report on Tuesday, September 8th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, X-Energy presently has a consensus rating of “Moderate Buy” and a consensus price target of $33.25.

X-Energy Stock Up 1.9%

The company has a 50 day moving average price of $16.15.

X-Energy (NASDAQ:XE) last issued its quarterly earnings data on Thursday, August 13th. The company reported ($0.15) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.06). The company had revenue of $54.60 million during the quarter. The firm’s quarterly revenue was up 154.0% compared to the same quarter last year. On average, equities analysts expect that X-Energy, Inc. will post -0.76 earnings per share for the current year.

Institutional Investors Weigh In On X-Energy

Hedge funds and other institutional investors have recently made changes to their positions in the business. Eastern Bank acquired a new stake in shares of X-Energy in the third quarter worth $28,000. GK Wealth Management LLC bought a new stake in X-Energy in the 3rd quarter valued at $57,000. IFP Advisors Inc bought a new stake in X-Energy in the 2nd quarter valued at $95,000. Silicon Valley Capital Partners acquired a new stake in X-Energy in the 2nd quarter worth $103,000. Finally, Delta Capital Management LLC bought a new position in shares of X-Energy during the 3rd quarter worth about $154,000.

About X-Energy

X-energy is an advanced nuclear energy company that develops small modular reactors and nuclear fuel designed to provide reliable, carbon-free electricity and industrial heat. Its flagship Xe-100 reactor is a high-temperature gas-cooled reactor that uses helium as a coolant and is designed for modular deployment.

The company also develops TRISO-X fuel, a coated-particle fuel technology intended to withstand extreme temperatures and support the operation of advanced reactors. X-energy’s products are aimed at utilities, industrial customers, and other organizations seeking dependable power and process heat with lower carbon emissions.

Founded in 2009, X-energy is headquartered in Rockville, Maryland.