NuScale, Rocket Lab Face Heavy Insider Selling After Surges

Over the past 52 weeks, two stocks in the industrials sector have seen their values absolutely skyrocket. As of the Sept. 24 close, small modular reactor (SMR) stock NuScale Power (NYSE: SMR) is up more than 260%. Meanwhile, spacecraft launch and design company Rocket Lab (NASDAQ: RKLB) has provided an approximately 540% return.

However, Nuscale and Rocket Lab also just received negative news from parties with intimate understandings of their businesses. In September alone, MarketBeat tracked over $250 million of insider selling in each stock.

Immediately, this should raise a red flag for investors. 

Neither stock has seen large insider selling in the months leading up to September. Still, not all insider sales are equal, which makes a thorough analysis crucial for gauging their meaning.

Below, we’ll examine the insider trades surrounding SMR and RKLB and decipher what they signal to investors.

SMR’s Top Investor Sells $297 Million, Indicates More Sales Are Coming

In September, MarketBeat recorded a whopping $297 million of insider selling at NuScale. With NuScale’s incredible surge in the past 52 weeks, this raises concerns that insiders may see the rally as tapped out. All of the sales recorded in September came from one shareholder: Fluor Corporation (NYSE: FLR).

Fluor provides engineering, procurement, and construction (EPC) services and NuScale’s largest shareholder. Fluor collaborates with NuScale in developing its technology and calls itself “the only firm with NuScale EPC expertise."

These factors show how deep the investment and business relationship between the two firms is.

Fluor has noted that its ambitions to sell NuScale largely stem from its need to lock in its paper profits and return that capital to shareholders. In Oct. 2024, the company said it expects a $1.6 billion gain with NuScale trading for $13.15. Since then, NuScale shares have tripled to nearly $40, giving Fluor a much more massive gain.

Fluor said on Aug. 1 that it plans to reveal its “monetization plans” for NuScale shares “over the next quarter." This suggests more sales from the company are on the way. Overall, there is a solid chance this could create a bearish overhang on NuScale shares in the near term. 

Thus, investors may want to consider taking gains in the stock. However, further positive developments in the nuclear industry and NuScale’s business could outweigh selling from Fluor.

 Rocket Lab Sees Huge Insider Selling, But with a Key Caveat

At Rocket Lab, insider selling for September comes in at approximately $267 million. This is notable, considering Rocket Lab has not seen insider selling since June. Additionally, since the beginning of 2025 through June, Rocket Lab’s total insider selling only came in at around $30 million.

Clearly, September has brought on an astonishing increase in insider sales compared to the year's first half. 

This comes as Rocket Lab shares are up 36% from the end of June to the September 24 close. This significant gain invites suspicion that insiders want to get out, potentially believing the stock’s rally will lose steam.

However, there is one key distinction to note regarding these September sales. A large portion of these sales were non-discretionary, meaning insiders follow a predetermined plan to execute them. This plan limits the seller's control over when and how many shares they sell, which significantly weakens the bearish signal.

Approximately $132 million, or just under half, of Rocket Lab’s September sales were non-discretionary. This makes that portion of the sales something investors shouldn’t fret over much. However, $135 million was discretionary.

This remains a marked increase compared to the $30 million in sales through June. Thus, Rocket Lab’s recent insider selling is a bearish indicator for shares, but not as bearish as the top-line figure would suggest. 

However, in contrast with NuScale, there is no clear indication that these extensive sales will continue. This significantly reduces the chance of a continued bearish overhang.

SMR & RKLB: Insider Selling Is Bearish, But Other Factors Could Prevail

With NuScale and Rocket Lab’s rapid appreciation, it’s not overly surprising to see insider selling. Still, these sales are but one signal investors should consider. Ultimately, the future success of SMR and RKLB shares will depend on sentiment from the broader market and the progress their businesses make.

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The article "NuScale, Rocket Lab Face Heavy Insider Selling After Surges" first appeared on MarketBeat.