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Mark Klein Purchases Shares of SuRo Capital – Insider Weekends

  • December 3, 2023

SuRo Capital (SSSS): $4

Market Cap: $100.84 million

EV: $80.18 million

Finding a company that was interesting enough to write about for this week’s insider weekends article was particularly challenging. I looked into each of the top 5 purchases but while there were glimmers of hope, there were also serious issues with each of them. Maybe it is because insider buying on the whole has dried up in recent weeks as we head into the end of the year and a quiet period for most companies. Maybe it is because the large rally this year has left valuations stretched and insiders less enthusiastic about buying on the open market. Maybe it is just the time of the year when insiders are gearing up for the holiday season or are focused on planning/forecasting for the next year.

Instead of focusing on the top 5, I figured I would dig deeper down the list to see if anything interesting popped up. I noticed that the CEO of SuRo Capital (SSSS), a company we used to have in the model portfolio, was once again buying stock. SuRo Capital, formerly known as GSV Capital, was a way for public market investors to invest in high growth private companies. The reason CEO Mark Klein is buying stock is because the company is trading at a more than 50% discount to NAV.

I wrote the following about the company in November 2020:

We wrote briefly about SuRo capital last week following a small purchase by the CEO. The company used to be known as Sutter Rock Capital and was forced to change its name to SuRo Capital because of a lawsuit by Sutter Hill Ventures. SuRo Capital mostly invests in large private technology companies in later rounds and sells their stake after the company goes public. Some might recognize the company as the new incarnation of GSV Capital. Back when it was GSVC it used to trade at a consistent discount to net asset value (NAV) and had stakes in both Facebook and Twitter before those companies went public. I had gotten into GSVC before Twitter went public and the ensuing post-IPO spike in Twitter helped buoy GSVC and the trade worked out well. 

SuRo Capital now has some very interesting names in its portfolio including Palantir, which recently went public and has appreciated significantly since going public. Other companies in SuRo’s portfolio include Coursera (I attribute my understanding of AI and Machine Learning to several Coursera courses), Next-door, Course Hero, Blink Health, Lime, etc. Their portfolio is rather concentrated with the top 5 positions accounting for 71% of the portfolio. Coursera and Palantir were top 2 positions when SuRo Capital reported results earlier this month.

Their net asset value (NAV) was $12.46 as of September 30, 2020 and the stock was trading at a discount to NAV at that time. Considering Palantir is up more than 90% since September 30 and SSSS is only up 5%, the current NAV for SSSS is probably even higher assuming they did not sell a large portion of their Palantir stock. I bought a position in SSSS after the first small purchase and it was good to see the CEO purchase even more last week.

SuRo Capital Insider Purchase
SuRo Capital Insider Purchase

When the company reported Q3 2023 results last month, it indicated that the NAV was $8.41 per share as of September 30, 2023, up from $7.35 at the end of Q2 2023. The stock closed at $4 last Friday, a 52% discount to NAV. This persistent discount to NAV also prompted the company to initiate a buyback program that has helped it retire more than 18% of its shares outstanding over six quarters.

Why does this discount to NAV continue to persist? The answer lies in the company’s portfolio of private companies. High growth private companies took a big hit in 2022 and while their public counterparts have rebounded sharply this year, the private market has not seen the same level of resurgence. The other reason investors are not willing to pay for SuRo’s portfolio is because they realize that the company becomes attractive when one of its underlying companies is getting ready to go public, thereby unlocking value. The last time this happened was when its portfolio companies Palantir (PLTR) and Coursera (COUR) went public and generated large gains for the company. The company usually tends to sell most of its stake after the IPO.

Shareholders were rewarded with large special dividends in 2021 that totaled up to $6 that year. The largest position SuRo currently has is Learneo (formerly known as Course Hero) with a fair value of $65.4 million and representing nearly 34% of SuRo’s portfolio. The company has $73.5 million in cash offset by $73.65 million in 6% notes due December 2026. It also has $20.26 million in U.S. treasury bills, which makes the current discount to NAV all the more stark.

SuRo Capital Portfolio Sep 30, 2023

The next time SuRo unlocks value for its shareholders will be when Learneo decides to go public or Mark Klein decides to take the company private. Until then I will continue to retain SuRo on my watchlist.


Welcome to edition 710 of Insider Weekends. Insider buying decreased last week with insiders purchasing $23.33 million of stock compared to $28.59 million in the week prior. Selling increased to $1.37 billion compared to $1.35 billion in the week prior.

Sell/Buy Ratio: The Insider Sell/Buy ratio is calculated by dividing the total insider sales in a given week by the total insider purchases that week. The adjusted ratio for last week went up to 58.58. In other words, insiders sold almost 59 times as much stock as they purchased. This week, the Sell/Buy ratio was unfavorable, compared to the prior week when the ratio stood at 47.15.

Notable Insider Buys:

1. Anterix Inc (ATEX): $34.4

Director Jeffrey A. Altman acquired 124,192 shares of this wireless communications company, paying $32.77 per share for a total amount of $4.07 million.

You can view the list of recent insider transactions for Anterix Inc here.

P/E: 87.24Forward P/E: N/AIndustry P/E: 17.28
P/S: 226.87Price/Book: 3.72EV/EBITDA: 60.89
Market Cap: $645.68MAvg. Daily Volume: 153,84152 Week Range: $27.2 – $39.16

2. Pulse Biosciences Inc (PLSE): $9.16

Director Robert W. Duggan acquired 342,997 shares of this novel bioelectric medicine company, paying $9.23 per share for a total amount of $3.17 million. Mr. Duggan increased his stake by 0.95% to 36,551,461 shares with this purchase. 60,000 of these shares were purchased indirectly by Blazon Corporation.

You can view the list of recent insider transactions for Pulse Biosciences Inc here.

P/E: -10.1Forward P/E: N/AIndustry P/E: 30.55
P/S: -56059.7Price/Book: 9.64EV/EBITDA: -12.58
Market Cap: $504.54MAvg. Daily Volume: 262,34652 Week Range: $1.86 – $10.21

3. Spectrum Brands Holdings Inc. (SPB): $71.15

Shares of this branded consumer products and home essentials company were acquired by 2 insiders:

  • Executive Chairman and CEO David M. Maura acquired 40,000 shares, paying $66.72 per share for a total amount of $2.67 million. Mr. Maura increased his stake by 5.52% to 764,391 shares with this purchase.
  • EVP, GC & Corporate Secretary Ehsan Zargar acquired 1,053 shares, paying $66.50 per share for a total amount of $70,025. Mr. Zargar increased his stake by 0.73% to 145,415 shares with this purchase.

You can view the list of recent insider transactions for Spectrum Brands Holdings Inc. here.

P/E: 1.56Forward P/E: N/AIndustry P/E: 20.15
P/S: 0.86Price/Book: 1.01EV/EBITDA: 1.74
Market Cap: $2.51BAvg. Daily Volume: 882,75852 Week Range: $55.65 – $84.72

4. Sight Sciences Inc (SGHT): $2.9

Director Staffan Encrantz acquired 665,855 shares of this ophthalmic medical device company, paying $3.39 per share for a total amount of $2.26 million. Mr. Encrantz increased his stake by 192.28% to 1,012,150 shares with this purchase.

You can view the list of recent insider transactions for Sight Sciences Inc here.

P/E: -2.28Forward P/E: N/AIndustry P/E: 1.01
P/S: 1.71Price/Book: 1.11EV/EBITDA: -0.56
Market Cap: $141.37MAvg. Daily Volume: 423,91952 Week Range: $1.04 – $15.3

5. Arbor Realty Trust Inc. (ABR): $13.44

Shares of this mortgage REIT were acquired by 2 insiders:

  • COB, CEO, and President Ivan Kaufman acquired 40,000 shares, paying $12.00 per share for a total amount of $479,900. Mr. Kaufman increased his stake by 3.74% to 1,108,412 shares with this purchase.
  • Chief Financial Officer Paul Elenio acquired 5,000 shares, paying $11.96 per share for a total amount of $59,825. Mr. Elenio increased his stake by 1.79% to 284,799 shares with this purchase.

You can view the list of recent insider transactions for Arbor Realty Trust Inc. here.

P/E: 8.9Forward P/E: N/AIndustry P/E: 9.35
P/S: 3.47Price/Book: 0.77EV/EBITDA: 29.08
Market Cap: $2.53BAvg. Daily Volume: 5,318,82352 Week Range: $9.22 – $16.74

You can view the full list of purchases from this Insider Buying page.

Notable Insider Sales:

1. Walmart Inc (WMT): $154.34

Director Robson S. Walton sold 766,600 shares of Walmart for $156.43, generating $119.92 million from the sale. These shares were sold indirectly by a trust.

You can view the list of recent insider transactions for Walmart Inc here.

P/E: 29.8Forward P/E: N/AIndustry P/E: 20.15
P/S: 0.65Price/Book: 4.87EV/EBITDA: 12.51
Market Cap: $415.42BAvg. Daily Volume: 8,694,79752 Week Range: $134.54 – $169.94

2. Airbnb Inc (ABNB): $135.02

Shares of Airbnb were sold by 4 insiders:

  • CEO and Chairman Brian Chesky sold 202,596 shares for $127.32, generating $25.79 million from the sale.
  • Director Joseph Gebbia sold 174,478 shares for $127.40, generating $22.23 million from the sale. 166,667 of these shares were sold indirectly by a trust.
  • Chief Strategy Officer Nathan Blecharczyk sold 40,000 shares for $128.86, generating $5.15 million from the sale.
  • Chief Financial Officer Dave Stephenson sold 11,087 shares for $127.00, generating $1.41 million from the sale.

You can view the list of recent insider transactions for Airbnb Inc – Class A here.

P/E: 16.79Forward P/E: N/AIndustry P/E: 16.47
P/S: 9.03Price/Book: 9.58EV/EBITDA: 27.99
Market Cap: $86.73BAvg. Daily Volume: 5,747,93952 Week Range: $81.91 – $154.95

3. Meta Platforms Inc (META): $324.82

Shares of Meta Platforms were sold by 3 insiders:

  • COB and CEO Mark Zuckerberg sold 140,045 shares for $337.50, generating $47.27 million from the sale.
  • Chief Operating Officer Javier Olivan sold 6,077 shares for $339.77, generating $2.06 million from the sale.
  • Chief Legal Officer Jennifer Newstead sold 566 shares for $333.62, generating $188,829 from the sale.

You can view the list of recent insider transactions for Meta Platforms Inc here.

P/E: 28.72Forward P/E: N/AIndustry P/E: 17.28
P/S: 6.88Price/Book: 5.85EV/EBITDA: 18.52
Market Cap: $873.77BAvg. Daily Volume: 15,445,98552 Week Range: $112.46 – $342.92

4. Salesforce Inc (CRM): $260

Shares of this cloud software company were sold by 3 insiders:

  • President and CFO Amy E. Weaver sold 94,980 shares for $250.00, generating $23.75 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Chair and CEO Marc Benioff sold 75,000 shares for $230.41, generating $17.28 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Pres/Chief Engineering Officer Srinivas Tallapragada sold 10,000 shares for $225.32, generating $2.25 million from the sale.

You can view the list of recent insider transactions for Salesforce Inc here.

P/E: 163.52Forward P/E: N/AIndustry P/E: 26.27
P/S: 7.45Price/Book: 4.35EV/EBITDA: 35.15
Market Cap: $252.98BAvg. Daily Volume: 5,594,57452 Week Range: $126.34 – $263.43

5. Applovin Corp (APP): $38.25

Shares of this software-based platform for mobile app developers were sold by 3 insiders:

  • CEO & Chairperson Arash Adam Foroughi sold 653,619 shares for $39.15, generating $25.59 million from the sale.
  • Chief Technology Officer Vasily Shikin sold 300,000 shares for $38.71, generating $11.61 million from the sale.
  • Chief Marketing Officer Katie Kihorany Jansen sold 52,193 shares for $39.36, generating $2.05 million from the sale.

You can view the list of recent insider transactions for Applovin Corp – Class A here.

P/E: 134.12Forward P/E: N/AIndustry P/E: 26.27
P/S: 3.34Price/Book: 9.19EV/EBITDA: 14.45
Market Cap: $10.12BAvg. Daily Volume: 3,721,18652 Week Range: $9.14 – $45.11

You can view the full list of sales from this Insider Sales page.

The list of all insider purchases and sales by management people is only available to InsideArbitrage Premium and Plus members.

Disclaimer:  I hold a long position in Meta (META). Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.