Sticking With This Neostellar Price Target After Surprise $14 Million Update

On Wednesday night, Neostellar (NSLR), the company formerly known as SuRo Capital (SSSS) published its preliminary take on its Q2 2026 investment portfolio.

Based on some back-of-the-envelope math based on data shared, it appears the company’s net asset value for Q2 2026 is between $350 million and $365 million, little changed compared to $361.6 million reported for Q1 2026. There will be a modest step down in the net asset value per share figure, however, to $13.25 to $13.75 compared to $14.24 for Q1 2026 due to the greater share count exiting Q2 2026.

Our understanding is that higher share count, up just over 4% compared to Q1 2026, is tied to some convertible notes converting and expenses associated with the transition to the company’s new external manager structure. We suspect more details on this will be shared when Neostellar delivers its Q2 2026 quarterly results.

While we could adjust our price target somewhat to account for the above, when we round out the adjusted figure it still points to a $17 target. There also isn’t any change in our investment thesis for NSLR shares in the Portfolio. If anything, as the relationship with Magnetar bears fruit, we could have more reasons to consider raising our price target than not. That gives us ample reason to reiterate our One rating, and note that we have some room to add further to the Portfolio’s NSLR exposure.

Nuts and Bolts of Neostellar’s Q2 2026

On the investment side of the ledger, in Q2 2026, Neostellar funded its remaining $15 million commitment to TensorWave through an investment in Magnetar Opportunity 2025-4 LP. Together with the initial $5 million investment completed during the first quarter of 2026, Neostellar Capital’s total investment in TensorWave now stands at $20 million. Also in Q2 2026, Neostellar completed a $9.5 million investment in ClickHouse, which provides high-performance analytical database software serving enterprise and AI-driven workloads, during the second quarter. It also made a relatively small investment in Huntress Labs, which was disclosed during the company’s Q1 2026 results.

Those investments consumed $24.7 million in cash, but before we mark that against the $43.3 million in cash Neostellar held at the end of Q1 2026, let’s first review the proceeds it received from three transactions. These include proceeds from selling down its position in CoreWeave (CRWV), GrabAGun (PEW) and HL Digital Assets, which was an investment in Hyperliquid (HYPE). Proceeds received totaled $12.2 million. Subsequent to the end of Q2 2026, Neostellar further monetized its GrabAGun position, raising another $0.3 million and leaving it with more than 340,000 shares. We expect that to be wound down in due time.

Given the modest quarter-over-quarter changes in Neostellar’s net asset value, it’s fair to assume its top positions in Whoop, OpenAI and Vast Data remain relatively unchanged. That suggests Whoop remains the company’s largest holding by a wide margin. At the end of Q1 2026 it was almost 39% of Neostellar’s total investment portfolio with a fair value near $151 million.

Something We Expect to See and Something We Want to See

When Neostellar presents its final Q2 2026 results, we should see some changes to the top-five investment table it usually shares. While Whoop, OpenAI and Vast Data will remain, as will Blink Health, CoreWeave will be replaced by TensorWave. Based on the disclosures in Wednesday night’s preliminary Q2 2026 results and the final one for Q1 2026, it looks to us like Neostellar still has some small piece of CRWV shares remaining. That should be a monetization event in 2H 2026 and we can say the same for Neostellar’s position in newly public Lime (LIME), once that IPO lock-up expiration passes.

If there was one item that raised an eyebrow in this preliminary Q2 2026 report, it would be on Neostellar exiting the quarter with liquid assets of about $14.7 million versus cash on the balance sheet of $43.3 million exiting Q1 2026. We can trace the investments made during the quarter and proceeds captured but that still doesn’t tie out to a figure near $14.7 million. When Neostellar reports, it will, hopefully, share more details to help us bridge the quarter-over-quarter change in cash on the balance sheet. The same goes for Magnetar’s expected $20 million investment into the company.

More Pro Portfolio

At the time of publication, TheStreet Pro Portfolio was long NSLR shares.