SURO Capital (NASDAQ:SSSS) Posts Quarterly Earnings Results, Beats Expectations By $5.34 EPS

Key Points

• Q1 beat: SURO Capital reported EPS of $5.18, beating the consensus by $5.34 (consensus -$0.16) and posted revenue of $0.73M versus $0.56M expected.
• Despite the beat, shares slipped to $13.31; the company has a market cap of $339.9M and a P/E of 7.52 while showing an unusually high net margin of 2,894.90% alongside a negative ROE (-8.12%).
• Analysts are generally positive—average rating "Buy" with a $14.75 price target after several upgrades—and CEO Mark D. Klein bought 2,500 shares as institutional ownership rose to about 12.95%.

SURO Capital (NASDAQ:SSSS - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported $5.18 EPS for the quarter, beating the consensus estimate of ($0.16) by $5.34, FiscalAI reports. The business had revenue of $0.73 million during the quarter, compared to analysts' expectations of $0.56 million. SURO Capital had a negative return on equity of 8.12% and a net margin of 2,894.90%.

SURO Capital Stock Performance

Shares of SSSS stock traded down $0.49 during trading hours on Tuesday, reaching $13.31. 351,097 shares of the company's stock were exchanged, compared to its average volume of 270,818. SURO Capital has a fifty-two week low of $5.05 and a fifty-two week high of $14.00. The stock has a market capitalization of $339.91 million, a P/E ratio of 7.52 and a beta of 1.40. The business has a fifty day moving average price of $10.98 and a 200-day moving average price of $9.97. The company has a quick ratio of 54.37, a current ratio of 54.37 and a debt-to-equity ratio of 0.34.

Analyst Upgrades and Downgrades

SSSS has been the subject of several recent research reports. Barrington Research boosted their price target on SURO Capital from $15.00 to $17.00 and gave the company an "outperform" rating in a research note on Tuesday, April 7th. Lucid Cap Mkts raised SURO Capital to a "strong-buy" rating in a research note on Monday, January 5th. Weiss Ratings cut SURO Capital from a "buy (b)" rating to a "hold (c)" rating in a research note on Wednesday, March 18th. Citigroup reissued an "outperform" rating on shares of SURO Capital in a research note on Thursday, April 9th. Finally, BTIG Research boosted their price target on SURO Capital from $12.50 to $15.00 and gave the company a "buy" rating in a research note on Thursday, April 9th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, SURO Capital currently has an average rating of "Buy" and an average price target of $14.75.

Insider Activity at SURO Capital

In other SURO Capital news, CEO Mark D. Klein purchased 2,500 shares of the business's stock in a transaction dated Tuesday, April 21st. The stock was bought at an average cost of $13.08 per share, for a total transaction of $32,700.00. Following the completion of the acquisition, the chief executive officer directly owned 1,673,521 shares in the company, valued at $21,889,654.68. This represents a 0.15% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 6.69% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Jane Street Group LLC lifted its holdings in shares of SURO Capital by 102.1% during the fourth quarter. Jane Street Group LLC now owns 251,035 shares of the company's stock worth $2,370,000 after buying an additional 126,796 shares during the last quarter. Two Sigma Investments LP lifted its holdings in shares of SURO Capital by 189.9% during the third quarter. Two Sigma Investments LP now owns 211,905 shares of the company's stock worth $1,907,000 after buying an additional 138,818 shares during the last quarter. Franklin Resources Inc. lifted its holdings in shares of SURO Capital by 10.8% during the fourth quarter. Franklin Resources Inc. now owns 210,183 shares of the company's stock worth $1,984,000 after buying an additional 20,484 shares during the last quarter. LPL Financial LLC lifted its holdings 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 buying an additional 86,926 shares during the last quarter. Finally, Acadian Asset Management LLC lifted its holdings in shares of SURO Capital by 46.1% during the first quarter. Acadian Asset Management LLC now owns 142,937 shares of the company's stock worth $708,000 after buying an additional 45,085 shares during the last quarter. 12.95% of the stock is currently owned by institutional investors and hedge funds.

SURO Capital Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.