Is Now the Time to Invest in SuRo Capital Corp. (NASDAQ:SSSS)?

Is Now the Time to Invest in SuRo Capital Corp. (NASDAQ:SSSS)?


The SuRo Capital Corp. (SSSS) shares are trading at higher $11.99 and the avg recommendation for the stock is Strong Buy. while the current analyst price target stands at $12.08.

To add more color to this target, the company’s high over the last year is $10.23 and the low is $3.60. Over the last 52 weeks, SSSS is up 17.20% while the S&P 500 is down -0.87%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, SSSS reported a profit of $-3.0 million. SuRo Capital Corp. also saw revenues decrease to $0.25 million. In addition, SSSS has free cash flow of $7.05 million as of 03-2020. The company’s EBITDA came in at $25.33 million which compares well with its peers.

SSSS Return on Equity (ROE) is -8.50%, and its Return on Assets is -5.70%. All told, it is clear that, SSSS needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. SSSS has a short ratio of 2.58 and outstanding shares of 17.44M.

Company Outlook

SSSS has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.29 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.07. Investors should also keep an eye on sector updates as SSSS has historically followed its peers on positive news.

All told, SuRo Capital Corp. SSSS has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SSSS represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

SuRo Capital Corp. SSSS is now commanding a market cap of 197.72M and a float of 12.54M. SSSS is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of SSSS stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in SSSS, either long or short, and we have not been compensated for this article.