Stellus Capital Investment (NYSE:SCM) Announces Earnings Results

Stellus Capital Investment (NYSE:SCM) released its earnings results on Monday. The investment management company reported $0.56 earnings per share for the quarter, topping analysts’ consensus estimates of $0.26 by $0.30, FiscalAI reports. Stellus Capital Investment had a net margin of 23.59% and a return on equity of 9.69%. The firm had revenue of $30.98 million during the quarter, compared to analyst estimates of $24.38 million.

Stellus Capital Investment Stock Performance

NYSE SCM traded up $0.03 during midday trading on Monday, hitting $8.44. The company had a trading volume of 152,345 shares, compared to its average volume of 224,175. The company has a quick ratio of 0.04, a current ratio of 0.04 and a debt-to-equity ratio of 1.05. The stock has a market cap of $244.34 million, a price-to-earnings ratio of 10.29 and a beta of 0.65. The firm has a fifty day simple moving average of $8.21 and a two-hundred day simple moving average of $9.47. Stellus Capital Investment has a fifty-two week low of $6.83 and a fifty-two week high of $15.04.

Stellus Capital Investment Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be given a $0.0833 dividend. This represents a c) annualized dividend and a yield of 11.8%. The ex-dividend date is Wednesday, September 30th. Stellus Capital Investment’s dividend payout ratio (DPR) is currently 121.95%.

Insider Activity at Stellus Capital Investment

In related news, Director J Tim Arnoult acquired 9,000 shares of the business’s stock in a transaction dated Tuesday, May 19th. The stock was acquired at an average price of $9.05 per share, with a total value of $81,450.00. Following the completion of the transaction, the director owned 50,869 shares of the company’s stock, valued at approximately $460,364.45. This represents a 21.50% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders have bought a total of 10,700 shares of company stock worth $96,523 over the last three months. 4.24% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Stellus Capital Investment

A number of institutional investors have recently added to or reduced their stakes in SCM. Geneos Wealth Management Inc. acquired a new position in Stellus Capital Investment in the 2nd quarter valued at approximately $25,000. JPMorgan Chase & Co. bought a new stake in shares of Stellus Capital Investment in the 3rd quarter worth approximately $28,000. BNP Paribas Financial Markets acquired a new stake in shares of Stellus Capital Investment during the 2nd quarter worth approximately $60,000. Kestra Advisory Services LLC acquired a new stake in shares of Stellus Capital Investment during the 4th quarter worth approximately $62,000. Finally, Brevan Howard Capital Management LP bought a new stake in shares of Stellus Capital Investment during the second quarter valued at approximately $154,000. 13.22% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on SCM shares. Wall Street Zen upgraded Stellus Capital Investment from a “sell” rating to a “hold” rating in a research note on Saturday, May 16th. LADENBURG THALM/SH SH decreased their target price on Stellus Capital Investment from $12.00 to $11.00 and set a “buy” rating for the company in a research note on Wednesday, May 13th. Zacks Research raised Stellus Capital Investment from a “strong sell” rating to a “hold” rating in a report on Friday, May 15th. Weiss Ratings lowered Stellus Capital Investment from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, July 28th. Finally, Keefe, Bruyette & Woods dropped their price target on Stellus Capital Investment from $9.00 to $8.00 and set a “market perform” rating on the stock in a research report on Monday, July 20th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Stellus Capital Investment has a consensus rating of “Hold” and an average price target of $9.50.

Stellus Capital Investment Company Profile

Stellus Capital Investment Corporation (NYSE: SCM) is a closed-end, externally managed business development company that provides debt and equity financing to middle market companies in the United States. As an investment vehicle specializing in private credit, Stellus focuses on originating and structuring senior secured loans, unitranche facilities, mezzanine debt, and equity co-investments tailored to the unique needs of growing businesses. Its flexible capital solutions are designed to support acquisitions, recapitalizations, growth initiatives, and balance sheet refinancings.

Operating under an evergreen structure, Stellus Capital Investment partners with a diverse group of portfolio companies across industries such as manufacturing, healthcare, business services, and specialty finance.