SURO Capital (NASDAQ:SSSS) Announces Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Key Points

• SURO Capital reported quarterly EPS of ($0.23), missing consensus by $0.03, while revenue beat expectations at $0.56M versus $0.35M; the quarter showed an unusually high net margin (2,930.42%) and a negative ROE of 5.64%.
• Despite the EPS miss, shares rose 10.4% to $10.09 on heavy volume (864,365 vs. average 197,409), giving the company a market cap of about $253.5M.
• Several institutional investors (including Jane Street and Two Sigma) increased positions and analysts are skewed positive with a consensus "Buy" rating and a $11.13 average price target.

SURO Capital (NASDAQ:SSSS - Get Free Report) announced its quarterly earnings results on Monday. The company reported ($0.23) earnings per share for the quarter, missing analysts' consensus estimates of ($0.20) by ($0.03), Zacks reports. SURO Capital had a net margin of 2,930.42% and a negative return on equity of 5.64%. The business had revenue of $0.56 million for the quarter, compared to analyst estimates of $0.35 million.

SURO Capital Stock Up 10.4%

Shares of SSSS traded up $0.95 during trading on Tuesday, reaching $10.09. The company's stock had a trading volume of 864,365 shares, compared to its average volume of 197,409. The company has a market cap of $253.51 million, a price-to-earnings ratio of -24.00 and a beta of 1.43. The company has a quick ratio of 18.48, a current ratio of 18.48 and a debt-to-equity ratio of 0.32. The company has a fifty day moving average of $9.43 and a two-hundred day moving average of $9.31. SURO Capital has a twelve month low of $4.21 and a twelve month high of $10.34.

Institutional Trading of SURO Capital

Several institutional investors have recently added to or reduced their stakes in the stock. Jane Street Group LLC boosted its stake in SURO Capital by 102.1% during the 4th quarter. Jane Street Group LLC now owns 251,035 shares of the company's stock valued at $2,370,000 after acquiring an additional 126,796 shares during the last quarter. Two Sigma Investments LP raised its stake in shares of SURO Capital by 189.9% in the 3rd quarter. Two Sigma Investments LP now owns 211,905 shares of the company's stock valued at $1,907,000 after purchasing an additional 138,818 shares in the last quarter. Franklin Resources Inc. raised its stake in shares of SURO Capital by 10.8% in the 4th quarter. Franklin Resources Inc. now owns 210,183 shares of the company's stock valued at $1,984,000 after purchasing an additional 20,484 shares in the last quarter. LPL Financial LLC lifted its position in shares of SURO Capital by 98.9% during the fourth quarter. LPL Financial LLC now owns 174,810 shares of the company's stock worth $1,650,000 after purchasing an additional 86,926 shares during the last quarter. Finally, Acadian Asset Management LLC grew its stake in SURO Capital by 46.1% in the first quarter. Acadian Asset Management LLC now owns 142,937 shares of the company's stock worth $708,000 after purchasing an additional 45,085 shares in the last quarter. 12.95% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on SSSS. Lucid Cap Mkts raised shares of SURO Capital to a "strong-buy" rating in a research note on Monday, January 5th. Weiss Ratings reiterated a "buy (b-)" rating on shares of SURO Capital in a report on Monday, December 29th. Wall Street Zen lowered SURO Capital from a "strong-buy" rating to a "hold" rating in a research report on Saturday, November 15th. BTIG Research restated a "buy" rating and set a $10.50 price objective on shares of SURO Capital in a research note on Tuesday, March 3rd. Finally, Capital One Financial set a $12.00 target price on SURO Capital in a research report on Monday, January 5th. One analyst has rated the stock with a Strong Buy rating and five have given a Buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus price target of $11.13.

About SURO Capital

SURO Capital Corp NASDAQ: SSSS is a closed-end management investment company that operates as a business development company (BDC). Founded in 2013 and headquartered in Lewisville, Texas, SURO Capital provides capital solutions to lower middle-market companies across a range of industries. As a BDC, the company is governed by the Investment Company Act of 1940 and focuses on offering debt and equity financing to privately held businesses that may have limited access to traditional bank lending.

The firm's primary business activities include originating and managing a diversified portfolio of senior secured floating rate loans, unsecured loans, unitranche debt, and equity co-investments.

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