NET Power (NYSE:NPWR) Trading 3.3% Higher – Is It Still a Buy?

On December 30, 2024, shares of NET Power Inc. (NYSE:NPWR) increased by 3.3%. The stock reached a high of $11.16 before settling at $10.67. In total, 303,530 shares were traded during the session, which is a significant drop of 29% compared to the average volume of 429,900 shares. The previous closing price was $10.33.

Analyst Ratings Changes

Recently, various research firms have updated their ratings on NPWR. For example, US Capital Advisors upgraded NET Power to a "strong-buy" rating on October 28. Conversely, Citigroup reduced its price target for NET Power from $11.00 to $8.00, categorizing the stock as "neutral" in a note issued on September 12.

Stock Performance Overview

Over the past periods, the stock has demonstrated a notable rise of 6.0%. Currently, NPWR has a 50-day moving average of $10.61 and a 200-day moving average of $9.21. The most recent earnings results were reported on November 12, revealing earnings per share (EPS) of $0.01. This result surpasses the analysts' consensus estimate of ($0.16) by $0.17. In the same quarter of the previous year, the company recorded an EPS of ($0.44). Analysts predict that NET Power will report an EPS of -0.4 for the current year.

Insider Trading Activity

In related developments, major shareholder Npeh, LLC sold 120,500 shares of NET Power on October 11 at an average price of $6.92. This transaction totaled $833,860, and post-sale, the insider holds approximately 716,987 shares of the company valued at about $4,961,550.04. This sale reflected a 14.39% decrease in their holdings. Another prominent shareholder, 8 Rivers Capital, LLC, offloaded 10,433 shares on October 3 for an average price of $7.00, amounting to $73,031. After this transaction, they own 14,290 shares valued at around $100,030, representing a 42.20% reduction in their stake. Notably, insiders have sold a collective total of 1,681,393 shares worth approximately $16,940,374 over the past 90 days, with insider ownership standing at 2.71%.

Institutional Investors' Changes

Institutional investors and hedge funds have recently adjusted their stakes in NET Power. Dynamic Technology Lab Private Ltd acquired new shares worth about $82,000 during the third quarter. MetLife Investment Management LLC boosted its position by 129.1% in the same quarter and now holds 12,922 shares valued at $91,000 after adding 7,281 shares. Other notable transactions include XTX Topco Ltd's purchase of shares valued at approximately $133,000 in the second quarter and B. Riley Wealth Advisors Inc.’s acquisition valued at around $136,000. Lastly, Quest Partners LLC invested approximately $153,000 in the third quarter. Overall, institutional and hedge fund ownership of NET Power stands at 53.62%.

Company Overview

NET Power Inc. specializes in clean energy technology, focused on inventing, developing, and licensing advanced power generation systems. Established in 2010, the company is based in Durham, North Carolina.

Conclusion

As NET Power continues to attract attention from analysts and institutional investors alike, its recent trading performance could prompt potential investors to reconsider their positions in the company. With a mixture of positive earnings reports and shifting insider activity, the question remains: Is NET Power still a worthwhile investment?

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