LADENBURG THALM/SH SH Cuts Stellus Capital Investment (NYSE:SCM) Price Target to $10.50

Stellus Capital Investment (NYSE:SCM) had its target price lowered by LADENBURG THALM/SH SH from $11.00 to $10.50 in a research note published on Wednesday morning,Benzinga reports. The brokerage currently has a buy rating on the investment management company’s stock.

Several other research analysts also recently issued reports on the company. Zacks Research raised Stellus Capital Investment from a “strong sell” rating to a “hold” rating in a report on Friday, May 15th. Keefe, Bruyette & Woods lowered their target price on Stellus Capital Investment from $9.00 to $8.00 and set a “market perform” rating for the company in a research note on Monday, July 20th. Weiss Ratings downgraded Stellus Capital Investment from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Tuesday, July 28th. Finally, Wall Street Zen upgraded Stellus Capital Investment from a “sell” rating to a “hold” rating in a research report on Saturday, May 16th. One analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $9.25.

Stellus Capital Investment Trading Down 1.8%

SCM opened at $8.75 on Wednesday. Stellus Capital Investment has a 1-year low of $6.83 and a 1-year high of $15.04. The stock has a market capitalization of $249.14 million, a PE ratio of 8.58 and a beta of 0.65. The company has a current ratio of 0.06, a quick ratio of 0.04 and a debt-to-equity ratio of 1.04. The firm has a 50-day moving average price of $8.19 and a two-hundred day moving average price of $9.35.

Stellus Capital Investment (NYSE:SCM) last announced its earnings results on Monday, August 10th. The investment management company reported $0.26 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.26. Stellus Capital Investment had a net margin of 30.66% and a return on equity of 9.09%. The company had revenue of $30.98 million for the quarter, compared to analyst estimates of $24.38 million. As a group, equities analysts anticipate that Stellus Capital Investment will post 1.04 earnings per share for the current fiscal year.

Stellus Capital Investment Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Thursday, October 15th. Investors of record on Wednesday, September 30th will be issued a dividend of $0.0833 per share. This represents a c) dividend on an annualized basis and a dividend yield of 11.4%. The ex-dividend date is Wednesday, September 30th. Stellus Capital Investment’s dividend payout ratio (DPR) is presently 98.04%.

Insider Activity

In other news, Director J Tim Arnoult bought 9,000 shares of the company’s stock in a transaction that occurred on Tuesday, May 19th. The shares were acquired at an average price of $9.05 per share, with a total value of $81,450.00. Following the transaction, the director owned 50,869 shares in the company, valued at $460,364.45. This represents a 21.50% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 4.24% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Stellus Capital Investment

A number of large investors have recently modified their holdings of the business. Inspire Advisors LLC raised its holdings in shares of Stellus Capital Investment by 1.4% in the 4th quarter. Inspire Advisors LLC now owns 107,787 shares of the investment management company’s stock valued at $1,367,000 after purchasing an additional 1,525 shares during the period. Brevan Howard Capital Management LP lifted its position in Stellus Capital Investment by 14.7% during the third quarter. Brevan Howard Capital Management LP now owns 12,663 shares of the investment management company’s stock worth $165,000 after purchasing an additional 1,622 shares during the period. Virtus Investment Advisers LLC lifted its stake in Stellus Capital Investment by 3.0% during the fourth quarter. Virtus Investment Advisers LLC now owns 60,048 shares of the investment management company’s stock worth $761,000 after purchasing an additional 1,754 shares during the last quarter. Geneos Wealth Management Inc. bought a new position in Stellus Capital Investment in the second quarter valued at about $25,000. Finally, Laurel Wealth Advisors LLC acquired a new position in Stellus Capital Investment during the fourth quarter worth about $26,000. 13.22% of the stock is currently owned by institutional investors and hedge funds.

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.