Neostellar Capital (NASDAQ:NSLR) Posts Quarterly Earnings Results

Neostellar Capital (NASDAQ:NSLR) issued its earnings results on Tuesday. The company reported ($0.15) earnings per share for the quarter, Zacks reports. Neostellar Capital had a net margin of 6,053.56% and a negative return on equity of 12.63%.

Here are the key takeaways from Neostellar Capital’s conference call:

• NAV per share fell to $12.64 from $13.44 in Q2, driven by lower unrealized valuations, net realized losses, and net investment loss; the WHOOP position was specifically marked down following secondary-market activity.
• Neostellar completed its transition to an externally managed structure with Magnetar, which management says adds expertise in credit, structured capital, and AI infrastructure while providing a $20 million, 6.5% three-year redeemable promissory note for liquidity.
• Management highlighted strong potential across its AI portfolio, including OpenAI, VAST Data, ClickHouse, CoreWeave, and TensorWave, and said the investment pipeline remains robust in AI development tools, physical AI, robotics, and agentic AI.
• Portfolio concentration remains substantial, with the top five holdings representing 72% of investments at fair value and the top 10 representing 87%; liquidity totaled $42.2 million, but debt repayment of the 6.00% notes due December 2026 is a priority and limits near-term investment capacity.
• The board reauthorized a $25 million share-repurchase program through October 2027, offering potential support for the stock, which management described as trading at an unusually large discount to NAV; however, actual repurchases depend on liquidity, debt obligations, market conditions, and available portfolio monetizations.

Neostellar Capital Stock Performance

Neostellar Capital stock opened at $5.96 on Wednesday. The company has a current ratio of 6.76, a quick ratio of 6.76 and a debt-to-equity ratio of 0.17. Neostellar Capital has a fifty-two week low of $5.72 and a fifty-two week high of $14.98. The stock has a fifty day moving average price of $7.84. The company has a market capitalization of $157.76 million, a PE ratio of 1.44 and a beta of 1.49.

Insiders Place Their Bets

In related news, CEO Mark Klein purchased 5,000 shares of the business’s stock in a transaction dated Monday, September 21st. The shares were purchased at an average cost of $7.91 per share, for a total transaction of $39,550.00. Following the completion of the acquisition, the chief executive officer owned 1,763,796 shares in the company, valued at approximately $13,951,626.36. This trade represents a 0.28% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Ronald Lott sold 5,085 shares of Neostellar Capital stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $9.96, for a total transaction of $50,646.60. Following the sale, the director owned 16,432 shares of the company’s stock, valued at approximately $163,662.72. The trade was a 23.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders purchased 81,040 shares of company stock worth $800,534 over the last three months. Company insiders own 8.32% of the company’s stock.

Trending Headlines about Neostellar Capital

Here are the key news stories impacting Neostellar Capital this week:

• Positive Sentiment: Neostellar said it has flexibility for up to $25 million in share repurchases and plans to retire its 6% notes by December 31. The buyback is described as flexibility, not a confirmed purchase, while retiring the notes could reduce debt and interest costs. Article: Neostellar outlines $25M buyback flexibility while planning to retire 6% notes
• Negative Sentiment: The company reported a third-quarter loss of $0.15 per share. The loss and its reported negative return on equity are potential headwinds for investors assessing performance. Article: Neostellar Capital reports third-quarter 2026 financial results

Analyst Upgrades and Downgrades

Several analysts recently commented on the stock. Wall Street Zen lowered shares of Neostellar Capital from a “hold” rating to a “sell” rating in a research note on Saturday, August 8th. Citizens Jmp lowered their price target on Neostellar Capital from $15.00 to $13.00 and set a “market outperform” rating on the stock in a report on Monday, October 26th. Weiss Ratings cut Neostellar Capital from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, September 18th. Barrington Research set a $13.00 price target on Neostellar Capital in a report on Tuesday, October 20th. Finally, BTIG Research reduced their price objective on shares of Neostellar Capital from $15.00 to $14.00 and set a “buy” rating on the stock in a research note on Wednesday, October 7th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Buy” and an average price target of $13.00.

About Neostellar Capital

SuRo Capital Corp. is a business development company. The firm seeks to invest in growing, late stage, venture capital-backed private companies. SuRo Capital Corp. was founded in 2010 and is based in San Francisco, California.