Stellus Capital Investment (NYSE:SCM) Posts Quarterly Earnings Results, Meets Estimates

Stellus Capital Investment (NYSE:SCM) released its quarterly earnings data on Monday. The investment management company reported $0.26 EPS for the quarter, meeting analysts’ consensus estimates of $0.26, Zacks reports. The business had revenue of $30.98 million during the quarter, compared to analysts’ expectations of $24.38 million. Stellus Capital Investment had a net margin of 23.59% and a return on equity of 9.69%.

Stellus Capital Investment Stock Up 0.4%

Shares of SCM stock opened at $8.44 on Tuesday. The company has a current ratio of 0.04, a quick ratio of 0.04 and a debt-to-equity ratio of 1.05. Stellus Capital Investment has a 1 year low of $6.83 and a 1 year high of $15.04. The firm’s fifty day moving average price is $8.19 and its two-hundred day moving average price is $9.44. The firm has a market capitalization of $244.34 million, a P/E ratio of 10.29 and a beta of 0.65.

Stellus Capital Investment Dividend Announcement

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

Wall Street Analysts Forecast Growth

SCM has been the subject of a number of research analyst reports. Zacks Research raised Stellus Capital Investment from a “strong sell” rating to a “hold” rating in a research note on Friday, May 15th. 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. Wall Street Zen upgraded Stellus Capital Investment from a “sell” rating to a “hold” rating in a report on Saturday, May 16th. Weiss Ratings lowered Stellus Capital Investment from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Tuesday, July 28th. Finally, LADENBURG THALM/SH SH dropped their target price on shares of Stellus Capital Investment from $12.00 to $11.00 and set a “buy” rating on the stock in a report on Wednesday, May 13th. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Stellus Capital Investment currently has an average rating of “Hold” and a consensus target price of $9.50.

Insider Buying and Selling

In other Stellus Capital Investment news, Director J Tim Arnoult acquired 9,000 shares of Stellus Capital Investment stock in a transaction dated Tuesday, May 19th. The stock was bought at an average cost of $9.05 per share, for a total transaction of $81,450.00. Following the purchase, the director directly owned 50,869 shares in the company, valued at approximately $460,364.45. This represents a 21.50% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Over the last quarter, insiders have bought 10,700 shares of company stock worth $96,523. Insiders own 4.24% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Corient Private Wealth LLC grew its stake in Stellus Capital Investment by 138.9% in the second quarter. Corient Private Wealth LLC now owns 507,526 shares of the investment management company’s stock valued at $7,075,000 after purchasing an additional 295,068 shares in the last quarter. LPL Financial LLC boosted its holdings in shares of Stellus Capital Investment by 695.6% in the 4th quarter. LPL Financial LLC now owns 309,045 shares of the investment management company’s stock valued at $3,919,000 after buying an additional 270,199 shares during the last quarter. Advisors Asset Management Inc. boosted its holdings in shares of Stellus Capital Investment by 26.8% in the 4th quarter. Advisors Asset Management Inc. now owns 183,055 shares of the investment management company’s stock valued at $2,321,000 after buying an additional 38,733 shares during the last quarter. Aquatic Capital Management LLC grew its stake in shares of Stellus Capital Investment by 398.7% in the third quarter. Aquatic Capital Management LLC now owns 18,168 shares of the investment management company’s stock valued at $237,000 after buying an additional 14,525 shares in the last quarter. Finally, Jane Street Group LLC bought a new position in shares of Stellus Capital Investment in the first quarter valued at $157,000. 13.22% of the stock is owned by institutional investors and hedge funds.

About Stellus Capital Investment

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.