Stellus Capital Investment (NYSE:SCM) Announces Quarterly Earnings Results

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

Stellus Capital Investment Trading Down 1.1%

NYSE:SCM traded down $0.10 during trading hours on Wednesday, reaching $9.29. The company’s stock had a trading volume of 146,354 shares, compared to its average volume of 217,935. The firm has a market capitalization of $268.83 million, a price-to-earnings ratio of 11.33 and a beta of 0.66. The firm has a 50-day simple moving average of $9.49 and a 200-day simple moving average of $11.26. Stellus Capital Investment has a 1 year low of $8.43 and a 1 year high of $15.39. The company has a debt-to-equity ratio of 1.13, a quick ratio of 0.14 and a current ratio of 0.14.

Stellus Capital Investment Dividend Announcement

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

Analyst Upgrades and Downgrades

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

Insider Buying and Selling

In other Stellus Capital Investment news, CFO W. Todd Huskinson bought 5,700 shares of the firm’s stock in a transaction that occurred on Friday, March 13th. The shares were bought at an average price of $8.79 per share, for a total transaction of $50,103.00. Following the transaction, the chief financial officer directly owned 54,297 shares in the company, valued at $477,270.63. This trade represents a 11.73% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Bruce R. Bilger bought 45,490 shares of the firm’s stock in a transaction that occurred on Friday, March 13th. The stock was acquired at an average price of $8.74 per share, for a total transaction of $397,582.60. Following the transaction, the director owned 228,055 shares in the company, valued at $1,993,200.70. This trade represents a 24.92% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired a total of 87,890 shares of company stock worth $766,551 in the last 90 days. 3.99% of the stock is owned by company insiders.

Hedge Funds Weigh In On Stellus Capital Investment

Large investors have recently added to or reduced their stakes in the business. Geneos Wealth Management Inc. purchased a new position in Stellus Capital Investment in the 2nd quarter worth $25,000. JPMorgan Chase & Co. purchased a new position in Stellus Capital Investment in the 3rd quarter worth $28,000. BNP Paribas Financial Markets purchased a new position in Stellus Capital Investment in the 2nd quarter worth $60,000. Kestra Advisory Services LLC purchased a new position in shares of Stellus Capital Investment in the fourth quarter valued at about $62,000. Finally, Brevan Howard Capital Management LP purchased a new position in shares of Stellus Capital Investment in the second quarter valued at about $154,000. Hedge funds and other institutional investors own 13.22% of the company’s stock.

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.