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

Stellus Capital Investment (NYSE:SCM) posted its quarterly earnings results on Monday. The investment management company reported $0.26 earnings per share for the quarter, meeting the consensus estimate of $0.26, Zacks reports. Stellus Capital Investment had a net margin of 30.66% and a return on equity of 9.07%. The firm had revenue of $30.98 million during the quarter, compared to the consensus estimate of $24.38 million.

Stellus Capital Investment Stock Performance

SCM opened at $8.80 on Wednesday. The company has a market cap of $254.70 million, a P/E ratio of 8.63 and a beta of 0.65. The company has a quick ratio of 0.04, a current ratio of 0.04 and a debt-to-equity ratio of 1.05. The firm’s 50-day moving average price is $8.19 and its 200-day moving average price is $9.41. Stellus Capital Investment has a 52-week low of $6.83 and a 52-week high of $15.04.

Stellus Capital Investment Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th will be issued a dividend of $0.0833 per share. The ex-dividend date is Wednesday, September 30th. This represents a c) annualized dividend and a dividend yield of 11.4%. Stellus Capital Investment’s dividend payout ratio is 98.04%.

Insider Buying and Selling

In related news, Director J Tim Arnoult bought 9,000 shares of the stock in a transaction that occurred on 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 of the company’s stock, valued at approximately $460,364.45. This trade represents a 21.50% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 4.24% of the stock is owned by company insiders.

Hedge Funds Weigh In On Stellus Capital Investment

A number of institutional investors have recently bought and sold shares of SCM. Inspire Advisors LLC increased its stake in shares of Stellus Capital Investment by 1.4% in the 4th quarter. Inspire Advisors LLC now owns 107,787 shares of the investment management company’s stock valued at $1,367,000 after purchasing an additional 1,525 shares in the last quarter. Brevan Howard Capital Management LP boosted its position in Stellus Capital Investment by 14.7% during the third quarter. Brevan Howard Capital Management LP now owns 12,663 shares of the investment management company’s stock worth $165,000 after purchasing an additional 1,622 shares in the last quarter. Virtus Investment Advisers LLC grew its holdings in Stellus Capital Investment by 3.0% in the fourth 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 period. Geneos Wealth Management Inc. acquired a new position in shares of Stellus Capital Investment during the 2nd quarter worth approximately $25,000. Finally, CANADA LIFE ASSURANCE Co lifted its position in shares of Stellus Capital Investment by 8.5% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 26,769 shares of the investment management company’s stock valued at $373,000 after buying an additional 2,101 shares in the last quarter. 13.22% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. Wall Street Zen upgraded shares of Stellus Capital Investment from a “sell” rating to a “hold” rating in a report on Saturday, May 16th. Weiss Ratings lowered shares of Stellus Capital Investment from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, July 28th. Zacks Research raised shares of Stellus Capital Investment from a “strong sell” rating to a “hold” rating in a research note on Friday, May 15th. Keefe, Bruyette & Woods lowered their target price on Stellus Capital Investment from $9.00 to $8.00 and set a “market perform” rating for the company in a report on Monday, July 20th. Finally, LADENBURG THALM/SH SH dropped their target price on Stellus Capital Investment from $12.00 to $11.00 and set a “buy” rating on the stock in a research report on Wednesday, May 13th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $9.50.

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.