Shares of Oklo (OKLO), a nuclear startup aiming to power AI data centers with next-gen reactors, declined over 10% during Thursday’s trading following a notable insider sale. According to the SEC filing, Board director Michael Klein sold 50,000 shares of the company worth $6.7 million on September 22.
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His sale comes just weeks after Oklo stock surged on investor optimism about its small modular reactor (SMR) technology and its potential role in powering AI infrastructure.
While insider selling is not unusual, the timing and size of Klein’s transaction have raised investors’ concerns. This is because two more key insiders offloaded Oklo stock recently.
CEO Jacob DeWitte gifted $3 million worth of stock this week, and CFO Craig Bealmear sold $9.4 million last week. The sudden unloading of shares suggests insiders may be cashing in on peak valuations.
Goldman Sachs Adds to the Pressure
Adding to the pressure, Goldman Sachs analyst Brian Lee initiated coverage with a Hold rating and a $117 price target, implying downside from current levels.
Lee highlighted several risks: Oklo has no commercial revenue currently, has no signed power purchase agreements despite a 14 GW pipeline, and has a capital-heavy business model that could hurt long-term growth.
Thus, without a license from the Nuclear Regulatory Commission or signed customer deals, the company’s nearly $20 billion valuation might seem high.
Is OKLO a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on OKLO stock based on six Buys, seven Holds, and one Sell assigned in the past three months. Further, the average Oklo price target of $79.75 per share implies 33.32% downside risk.
