Insider Buying: Stellus Capital Investment (NYSE:SCM) CEO Acquires 35,000 Shares of Stock

Stellus Capital Investment Corporation (NYSE:SCM) CEO Robert Ladd purchased 35,000 shares of the company’s stock in a transaction that occurred on Friday, March 13th. The shares were purchased at an average price of $8.70 per share, for a total transaction of $304,500.00. Following the purchase, the chief executive officer directly owned 667,935 shares in the company, valued at $5,811,034.50. The trade was a 5.53% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Stellus Capital Investment Stock Performance

SCM traded up $0.42 during trading on Tuesday, hitting $9.13. 327,640 shares of the stock were exchanged, compared to its average volume of 259,030. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 1.13. Stellus Capital Investment Corporation has a 1-year low of $8.43 and a 1-year high of $15.39. The stock has a fifty day moving average price of $11.56 and a two-hundred day moving average price of $12.33. The firm has a market capitalization of $264.29 million, a P/E ratio of 9.71 and a beta of 0.68.

Stellus Capital Investment (NYSE:SCM) last announced its earnings results on Wednesday, March 11th. The investment management company reported $0.29 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.31 by ($0.02). The business had revenue of $23.98 million for the quarter, compared to analysts’ expectations of $26.33 million. Stellus Capital Investment had a return on equity of 10.28% and a net margin of 26.48%. As a group, sell-side analysts predict that Stellus Capital Investment Corporation will post 1.74 earnings per share for the current year.

Stellus Capital Investment Dividend Announcement

The firm also recently announced a monthly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st will be paid a dividend of $0.1133 per share. The ex-dividend date is Tuesday, March 31st. This represents a c) annualized dividend and a dividend yield of 14.9%. Stellus Capital Investment’s dividend payout ratio is 144.68%.

Analyst Upgrades and Downgrades

Several analysts have commented on the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Stellus Capital Investment in a research note on Monday, December 29th. Keefe, Bruyette & Woods lowered their target price 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 equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $9.00.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Inspire Advisors LLC raised its holdings in Stellus Capital Investment by 1.4% during the fourth quarter. Inspire Advisors LLC now owns 107,787 shares of the investment management company’s stock worth $1,367,000 after purchasing an additional 1,525 shares in the last quarter. Brevan Howard Capital Management LP boosted its holdings in Stellus Capital Investment by 14.7% in the 3rd quarter. Brevan Howard Capital Management LP now owns 12,663 shares of the investment management company’s stock valued at $165,000 after purchasing an additional 1,622 shares in the last quarter. Virtus Investment Advisers LLC increased its position in Stellus Capital Investment by 3.0% during the 4th 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 period. Geneos Wealth Management Inc. acquired a new position in Stellus Capital Investment during the 2nd quarter worth approximately $25,000. Finally, Laurel Wealth Advisors LLC purchased a new position in shares of Stellus Capital Investment during the 4th quarter worth approximately $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.