Stellus Capital Investment (NYSE:SCM) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Stellus Capital Investment (NYSE:SCM) issued its earnings results on Monday. The investment management company reported $0.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.30 by $0.04, Zacks reports. The business had revenue of $26.28 million for the quarter, compared to analysts’ expectations of $25.97 million. Stellus Capital Investment had a return on equity of 10.75% and a net margin of 29.77%.

Stellus Capital Investment Price Performance

Shares of SCM opened at $12.09 on Wednesday. The business’s 50-day moving average is $12.92 and its 200-day moving average is $13.61. The company has a debt-to-equity ratio of 1.27, a current ratio of 0.28 and a quick ratio of 0.28. The company has a market capitalization of $343.58 million, a price-to-earnings ratio of 11.09 and a beta of 0.88. Stellus Capital Investment has a fifty-two week low of $11.19 and a fifty-two week high of $15.56.

Stellus Capital Investment Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Thursday, January 15th. Stockholders of record on Wednesday, December 31st will be issued a $0.1333 dividend. The ex-dividend date is Wednesday, December 31st. This represents a c) dividend on an annualized basis and a dividend yield of 13.2%. Stellus Capital Investment’s dividend payout ratio is currently 146.79%.

Analysts Set New Price Targets

SCM has been the subject of a number of recent analyst reports. Zacks Research lowered Stellus Capital Investment from a “hold” rating to a “strong sell” rating in a research report on Tuesday, October 14th. Weiss Ratings downgraded Stellus Capital Investment from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, October 30th. Finally, Wall Street Zen lowered shares of Stellus Capital Investment from a “hold” rating to a “sell” rating in a research note on Sunday. Two investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Reduce” and an average target price of $13.00.

Institutional Investors Weigh In On Stellus Capital Investment

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SCM. JPMorgan Chase & Co. acquired a new position in shares of Stellus Capital Investment in the third quarter worth $28,000. Geneos Wealth Management Inc. acquired a new position in Stellus Capital Investment in the 2nd quarter worth about $25,000. CANADA LIFE ASSURANCE Co raised its stake in shares of Stellus Capital Investment by 8.5% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 26,769 shares of the investment management company’s stock worth $373,000 after purchasing an additional 2,101 shares in the last quarter. Corient Private Wealth LLC lifted its holdings in shares of Stellus Capital Investment by 138.9% during the 2nd quarter. Corient Private Wealth LLC now owns 507,526 shares of the investment management company’s stock valued at $7,075,000 after buying an additional 295,068 shares during the last quarter. Finally, Group One Trading LLC lifted its holdings in shares of Stellus Capital Investment by 112.3% during the 2nd quarter. Group One Trading LLC now owns 11,401 shares of the investment management company’s stock valued at $159,000 after buying an additional 6,030 shares during the last quarter. Hedge funds and other institutional investors own 13.22% of the company’s stock.

Stellus Capital Investment Company Profile

Stellus Capital Investment Corporation is a business development company specializing in investments in private middle-market companies. It invests through first lien, second lien, unitranche, and mezzanine debt financing, often with a corresponding equity investment. The fund prefers to invest in US and Canada.