SURO Capital (NASDAQ:SSSS) Announces Quarterly Earnings Results, Meets Estimates

SURO Capital (NASDAQ:SSSS - Get Free Report) announced its earnings results on Tuesday. The company reported ($0.16) earnings per share for the quarter, meeting the consensus estimate of ($0.16), Zacks 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 7.69% and a net margin of 10,695.73%.

Here are the key takeaways from SURO Capital's conference call:

• NAV jumped from $8.09 to $14.24 per share (≈76% q/q), the largest quarter-over-quarter increase in company history driven primarily by unrealized appreciation in the private portfolio.
• Board approved a proposal to externalize management to Neostellar Advisors LLC (a joint advisor with Magnetar) pending shareholder approval, with Magnetar committing $20M and management continuity preserved while pre-existing investments are excluded from any new incentive fee.
• The company is increasing exposure to AI and data-infrastructure leaders, funding $5M (of up to $20M) to TensorWave and completing a ~$9.5M secondary investment in ClickHouse to capture demand for AI compute and real-time analytics.
• The portfolio is highly concentrated—top five positions (~Whoop, OpenAI, Vast, Blink Health, CoreWeave SPV) represent ~72% of fair value and the top 10 represent ~88%—raising idiosyncratic risk tied to a few large private holdings.
• Liquidity stood at ~ $46M (≈$43.3M cash and ~$2.7M unrestricted public securities) but ~$15.9M of public securities remained subject to lock-ups, and realized gains were small relative to the surge in unrealized value.

SURO Capital Stock Performance

SURO Capital stock opened at $13.98 on Thursday. SURO Capital has a fifty-two week low of $5.05 and a fifty-two week high of $14.48. The firm's 50 day simple moving average is $11.16 and its 200-day simple moving average is $10.03. The company has a debt-to-equity ratio of 0.34, a current ratio of 54.37 and a quick ratio of 54.37. The company has a market cap of $357.05 million, a P/E ratio of 2.00 and a beta of 1.40.

Analyst Ratings Changes

A number of research firms recently commented on SSSS. BTIG Research boosted their target price on shares of SURO Capital from $12.50 to $15.00 and gave the stock a "buy" rating in a report on Thursday, April 9th. Barrington Research raised their target price on shares of SURO Capital from $17.00 to $18.00 and gave the stock an "outperform" rating in a report on Wednesday. Weiss Ratings lowered shares of SURO Capital from a "buy (b)" rating to a "hold (c)" rating in a research report on Wednesday, March 18th. Citigroup reaffirmed an "outperform" rating on shares of SURO Capital in a report on Thursday, April 9th. Finally, Wall Street Zen downgraded SURO Capital from a "hold" rating to a "sell" rating in a research report on Saturday, March 14th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Buy" and an average price target of $15.00.

Insider Activity at SURO Capital

In other news, CEO Mark D. Klein acquired 2,500 shares of the firm's stock in a transaction that occurred on Tuesday, April 21st. The stock was purchased at an average price of $13.08 per share, with a total value of $32,700.00. Following the purchase, the chief executive officer owned 1,673,521 shares of the company's stock, valued at approximately $21,889,654.68. This trade represents a 0.15% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Company insiders own 6.69% of the company's stock.

Institutional Trading of SURO Capital

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