Zacks Investment Research lowered shares of Stellus Capital Investment (NYSE:SCM) from a buy rating to a hold rating in a research report released on Wednesday morning.

According to Zacks, “Stellus Capital Investment Corporation is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private middle-market companies. “

Separately, ValuEngine raised Stellus Capital Investment from a sell rating to a hold rating in a report on Monday, November 12th.

Shares of NYSE SCM opened at $13.62 on Wednesday. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 0.85. Stellus Capital Investment has a one year low of $11.07 and a one year high of $14.00. The firm has a market capitalization of $215.22 million, a price-to-earnings ratio of 11.26 and a beta of 0.67.

Stellus Capital Investment (NYSE:SCM) last released its earnings results on Wednesday, November 7th. The investment management company reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.34 by $0.01. The company had revenue of $14.49 million for the quarter, compared to analyst estimates of $13.58 million. Stellus Capital Investment had a return on equity of 8.59% and a net margin of 60.59%. Equities analysts forecast that Stellus Capital Investment will post 1.29 earnings per share for the current fiscal year.

The business also recently announced a monthly dividend, which will be paid on Tuesday, January 15th. Stockholders of record on Monday, December 31st will be issued a dividend of $0.1133 per share. This represents a $1.36 annualized dividend and a dividend yield of 9.98%. The ex-dividend date is Friday, December 28th. Stellus Capital Investment’s dividend payout ratio (DPR) is currently 112.40%.

In other Stellus Capital Investment news, insider Robert T. Ladd acquired 8,000 shares of the company’s stock in a transaction that occurred on Monday, December 24th. The stock was acquired at an average cost of $11.85 per share, for a total transaction of $94,800.00. The acquisition was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Robert T. Ladd acquired 6,500 shares of the company’s stock in a transaction that occurred on Monday, November 12th. The shares were acquired at an average price of $12.87 per share, with a total value of $83,655.00. The disclosure for this purchase can be found here. Over the last three months, insiders have bought 115,100 shares of company stock worth $1,438,159. 5.40% of the stock is currently owned by insiders.

A hedge fund recently bought a new stake in Stellus Capital Investment stock. Stephens Inc. AR acquired a new position in shares of Stellus Capital Investment Corp (NYSE:SCM) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 20,085 shares of the investment management company’s stock, valued at approximately $257,000. Stephens Inc. AR owned about 0.13% of Stellus Capital Investment as of its most recent SEC filing. Institutional investors and hedge funds own 22.63% of the company’s stock.

About Stellus Capital Investment

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 seeks to invest in companies with an EBITDA between $5 million and $50 million.

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