Stellus Capital Investment Corporation (NYSE:SCM – Get Free Report) CFO W. Todd Huskinson purchased 5,700 shares of the stock in a transaction that occurred on Friday, March 13th. The stock was acquired at an average cost of $8.79 per share, with a total value of $50,103.00. Following the completion of the acquisition, the chief financial officer directly owned 54,297 shares of the company’s stock, valued at $477,270.63. This represents a 11.73% 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.
Stellus Capital Investment Stock Up 4.2%
SCM stock opened at $9.52 on Thursday. The company has a current ratio of 0.14, a quick ratio of 0.14 and a debt-to-equity ratio of 1.13. Stellus Capital Investment Corporation has a twelve month low of $8.43 and a twelve month high of $15.39. The company’s 50 day moving average is $11.42 and its two-hundred day moving average is $12.27. The stock has a market cap of $275.63 million, a P/E ratio of 10.13 and a beta of 0.68.
Stellus Capital Investment (NYSE:SCM – Get Free Report) last issued its earnings results on Wednesday, March 11th. The investment management company reported $0.29 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.31 by ($0.02). The company had revenue of $23.98 million during the quarter, compared to analyst estimates of $26.33 million. Stellus Capital Investment had a net margin of 26.48% and a return on equity of 10.28%. Research analysts expect that Stellus Capital Investment Corporation will post 1.74 earnings per share for the current fiscal year.
Stellus Capital Investment Announces Dividend
Analyst Ratings Changes
A number of analysts have recently commented on the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Stellus Capital Investment in a research report on Monday, December 29th. Keefe, Bruyette & Woods dropped their price target on Stellus Capital Investment from $13.00 to $9.00 and set a “market perform” rating on the stock in a research note on Monday. Three analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $9.00.
Read Our Latest Report on Stellus Capital Investment
Institutional Trading of Stellus Capital Investment
A number of large investors have recently bought and sold shares of the business. Corient Private Wealth LLC grew its position in 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 worth $7,075,000 after purchasing an additional 295,068 shares during the last quarter. LPL Financial LLC boosted its stake in shares of Stellus Capital Investment by 695.6% during the fourth quarter. LPL Financial LLC now owns 309,045 shares of the investment management company’s stock worth $3,919,000 after buying an additional 270,199 shares during the period. Muzinich & Co. Inc. boosted its stake in shares of Stellus Capital Investment by 22.5% during the fourth quarter. Muzinich & Co. Inc. now owns 253,534 shares of the investment management company’s stock worth $3,215,000 after buying an additional 46,641 shares during the period. Two Sigma Investments LP grew its holdings in shares of Stellus Capital Investment by 3.3% during the third quarter. Two Sigma Investments LP now owns 225,264 shares of the investment management company’s stock worth $2,942,000 after buying an additional 7,132 shares during the last quarter. Finally, Condor Capital Management grew its holdings in shares of Stellus Capital Investment by 5.7% during the fourth quarter. Condor Capital Management now owns 214,438 shares of the investment management company’s stock worth $2,719,000 after buying an additional 11,592 shares during the last quarter. Institutional investors and hedge funds own 13.22% of the company’s stock.
More Stellus Capital Investment News
Here are the key news stories impacting Stellus Capital Investment this week:
- Positive Sentiment: Senior insiders materially increased stakes (CEO Robert Ladd bought 35,000 shares on Mar 13 and an additional 1,700 shares on Mar 16; Director Bruce Bilger and CFO W. Todd Huskinson also made large purchases) — a strong signal of management confidence that can support the stock. Insider Buys
- Neutral Sentiment: Company declared a monthly dividend (record Mar 31, pay Apr 15) with a very high headline yield (~15% reported). That attracts income buyers but raises scrutiny over sustainability given the payout ratio. Dividend Filing
- Neutral Sentiment: Institutional and hedge fund activity shows repositioning — several firms increased stakes recently, which can provide baseline demand but also signals active trading rather than a one-way conviction. Institutional Holdings
- Negative Sentiment: Keefe, Bruyette & Woods cut its price target to $9 and set a “market perform” rating — a clear near-term headwind as analyst tone and lower targets can trigger selling and reduce upside expectations. KBW Downgrade
- Negative Sentiment: Recent quarter showed an EPS and revenue miss (reported Mar 11: $0.29 EPS vs. $0.31 est.; revenue $23.98M vs. $26.33M) and a payout ratio above 100% — these fundamentals raise questions about earnings durability and dividend coverage. Earnings & Metrics
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.
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