Nano Nuclear Energy Inc. (NASDAQ:NNE) shares are trading higher Monday, and the stock is up nearly 50% over the past five days. Here's a look at what's going on.

What To Know:

Nano Nuclear shares continue to climb after the company announced Monday it has signed a memorandum of understanding (MOU) to collaborate with Curio Solutions to optimize Curio's nuclear fuel recycling capabilities for NANO Nuclear's next-generation portable nuclear microreactors in development.

Nano Nuclear shares surged last week on multiple catalysts including approval by the U.S. Senate of the ADVANCE Act, aimed at accelerating the deployment of advanced nuclear technologies.

Also, Benchmark raised its price target on the stock from $15 to $39, and the company announced its acquisition of novel annular linear induction pump (ALIP) intellectual property used in small nuclear reactor cooling and heat transfer.

According to data from Benzinga Pro, Nano Nuclear shares are trading well-above the stock's 50-day moving average of $8.95 and the stock has a float of less than 18 million shares.

Is NNE A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Nano Nuclear Energy's page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Nano Nuclear Energy does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 14.97%, you'll need to buy a share of Global Net Lease by July 11, 2024. Once done, you can expect to receive a nominal payout of $0.28 on July 16, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Nano Nuclear Energy will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

NNE Price Action: According to Benzinga Pro, Nano Nuclear Energy shares are up 15.6% at $27.10 at the time of publication Monday.

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Image: Gerd Altmann from Pixabay