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

Stellus Capital Investment (NYSE:SCM) posted its quarterly earnings data on Monday. The investment management company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.48), FiscalAI reports. The firm had revenue of $22.40 million for the quarter, compared to analysts’ expectations of $22.99 million. Stellus Capital Investment had a net margin of 30.66% and a return on equity of 9.09%.

Stellus Capital Investment Stock Up 0.0%

SCM traded up $0.00 on Monday, reaching $7.27. The company’s stock had a trading volume of 111,796 shares, compared to its average volume of 198,885. The stock has a market cap of $207.08 million, a price-to-earnings ratio of 7.13 and a beta of 0.70. Stellus Capital Investment has a 1 year low of $6.54 and a 1 year high of $13.55. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.06 and a quick ratio of 0.06. The business’s 50 day moving average is $7.56 and its 200 day moving average is $8.93.

Stellus Capital Investment Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Friday, January 15th. Investors of record on Thursday, December 31st will be paid a $0.0833 dividend. The ex-dividend date is Thursday, December 31st. This represents a $1.00 annualized dividend and a dividend yield of 13.7%. Stellus Capital Investment’s payout ratio is 98.04%.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on SCM shares. LADENBURG THALM/SH SH decreased their target price on shares of Stellus Capital Investment from $11.00 to $10.50 and set a “buy” rating for the company in a research note on Wednesday, August 12th. Weiss Ratings lowered shares of Stellus Capital Investment from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, October 8th. Finally, Keefe, Bruyette & Woods dropped their price target on shares of Stellus Capital Investment from $9.00 to $8.00 and set a “market perform” rating on the stock in a research note on Monday, July 20th. One 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 stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $9.25.

Stellus Capital Investment Company Profile

Stellus Capital Investment Corporation (NYSE: SCM) is a business development company that invests in privately owned, middle-market companies. The company seeks to generate income and, to a lesser extent, capital appreciation by providing financing to businesses that may have limited access to traditional sources of capital.

Stellus primarily invests in senior secured loans and other debt investments, while also making select subordinated debt and equity investments. Its portfolio companies operate across a range of industries, and the company generally focuses on established businesses with experienced management teams and the potential for stable cash flow.

Stellus Capital Investment is externally managed by Stellus Capital Management, an investment management firm founded by Robert T.