Stellus Capital Investment (NYSE:SCM) Releases Earnings Results, Hits Expectations

Stellus Capital Investment (NYSE:SCM) released its earnings results on Monday. The investment management company reported $0.27 EPS for the quarter, hitting analysts’ consensus estimates of $0.27, Zacks reports. The business had revenue of $23,292.93 billion during the quarter, compared to analysts’ expectations of $24.81 million. Stellus Capital Investment had a net margin of 23.59% and a return on equity of 9.61%.

Stellus Capital Investment Price Performance

SCM traded down $0.07 on Wednesday, reaching $9.32. 138,704 shares of the company’s stock were exchanged, compared to its average volume of 217,896. The stock has a market cap of $269.79 million, a PE ratio of 11.38 and a beta of 0.66. Stellus Capital Investment has a twelve month low of $8.43 and a twelve month high of $15.39. The stock’s fifty day moving average price is $9.49 and its 200-day moving average price is $11.26. The company has a debt-to-equity ratio of 1.13, a current ratio of 0.14 and a quick ratio of 0.14.

Stellus Capital Investment Announces Dividend

The firm also recently declared a monthly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be given a dividend of $0.1133 per share. The ex-dividend date is Tuesday, June 30th. This represents a c) dividend on an annualized basis and a yield of 14.6%. Stellus Capital Investment’s payout ratio is presently 144.68%.

Insider Buying and Selling

In other Stellus Capital Investment news, CFO W. Todd Huskinson purchased 5,700 shares of the stock in a transaction that occurred on Friday, March 13th. The shares were purchased at an average cost of $8.79 per share, for a total transaction of $50,103.00. Following the completion of the transaction, the chief financial officer owned 54,297 shares of the company’s stock, valued at $477,270.63. The trade was a 11.73% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Bruce R. Bilger purchased 45,490 shares of the stock in a transaction that occurred on Friday, March 13th. The shares were acquired at an average price of $8.74 per share, for a total transaction of $397,582.60. Following the completion of the transaction, the director directly owned 228,055 shares of the company’s stock, valued at $1,993,200.70. The trade was a 24.92% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have acquired 87,890 shares of company stock worth $766,551. 3.99% of the stock is owned by insiders.

Hedge Funds Weigh In On Stellus Capital Investment

Institutional investors and hedge funds have recently bought and sold shares of the business. Virtus Investment Advisers LLC boosted its holdings in Stellus Capital Investment by 3.0% in the 4th quarter. Virtus Investment Advisers LLC now owns 60,048 shares of the investment management company’s stock valued at $761,000 after purchasing an additional 1,754 shares during the last quarter. CANADA LIFE ASSURANCE Co boosted its holdings in Stellus Capital Investment by 34.7% in the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 36,056 shares of the investment management company’s stock valued at $470,000 after purchasing an additional 9,287 shares during the last quarter. Jane Street Group LLC boosted its holdings in Stellus Capital Investment by 39.5% in the 4th quarter. Jane Street Group LLC now owns 34,929 shares of the investment management company’s stock valued at $443,000 after purchasing an additional 9,896 shares during the last quarter. Royal Bank of Canada boosted its holdings in Stellus Capital Investment by 15.8% in the 1st quarter. Royal Bank of Canada now owns 27,882 shares of the investment management company’s stock valued at $390,000 after purchasing an additional 3,808 shares during the last quarter. Finally, Aquatic Capital Management LLC boosted its holdings in Stellus Capital Investment by 398.7% in the 3rd quarter. Aquatic Capital Management LLC now owns 18,168 shares of the investment management company’s stock valued at $237,000 after purchasing an additional 14,525 shares during the last quarter. 13.22% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

SCM has been the subject of a number of research reports. Keefe, Bruyette & Woods cut their target price on shares of Stellus Capital Investment from $13.00 to $9.00 and set a “market perform” rating for the company in a research note on Monday, March 16th. Zacks Research cut shares of Stellus Capital Investment from a “hold” rating to a “strong sell” rating in a research note on Thursday, April 16th. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average target price of $9.00.

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.