According to Zacks, “Stellus Capital Investment Corporation is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private middle-market companies. “
Several other equities research analysts have also recently weighed in on the company. Oppenheimer cut Stellus Capital Investment from an outperform rating to a market perform rating in a report on Monday, August 12th. CIBC restated a market perform rating on shares of Stellus Capital Investment in a report on Monday, August 12th.
SCM stock traded down $0.01 during trading on Wednesday, hitting $14.16. 87,401 shares of the company traded hands, compared to its average volume of 80,812. The firm has a market capitalization of $267.90 million, a PE ratio of 9.91 and a beta of 0.70. Stellus Capital Investment has a 1 year low of $11.65 and a 1 year high of $15.30. The company has a 50-day moving average of $13.69 and a 200-day moving average of $13.83. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.28 and a current ratio of 0.19.
Stellus Capital Investment (NYSE:SCM) last issued its earnings results on Thursday, November 7th. The investment management company reported $0.31 earnings per share for the quarter, meeting the consensus estimate of $0.31. The company had revenue of $15.52 million during the quarter, compared to analysts’ expectations of $14.61 million. Stellus Capital Investment had a return on equity of 9.44% and a net margin of 45.89%. Sell-side analysts expect that Stellus Capital Investment will post 1.32 EPS for the current year.
The firm also recently declared a dividend, which was paid on Friday, November 15th. Shareholders of record on Thursday, October 31st were given a dividend of $0.1133 per share. This is a positive change from Stellus Capital Investment’s previous dividend of $0.11. The ex-dividend date was Wednesday, October 30th. Stellus Capital Investment’s dividend payout ratio is presently 95.77%.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in SCM. NEXT Financial Group Inc bought a new position in shares of Stellus Capital Investment in the 2nd quarter worth approximately $41,000. Eagle Global Advisors LLC bought a new position in shares of Stellus Capital Investment in the 2nd quarter worth approximately $177,000. Resources Investment Advisors LLC. bought a new position in shares of Stellus Capital Investment in the 2nd quarter worth approximately $201,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of Stellus Capital Investment in the 2nd quarter worth approximately $234,000. Finally, Russell Investments Group Ltd. raised its position in shares of Stellus Capital Investment by 462.2% in the 2nd quarter. Russell Investments Group Ltd. now owns 18,243 shares of the investment management company’s stock worth $252,000 after acquiring an additional 14,998 shares in the last quarter. 17.84% of the stock is owned by institutional investors and hedge funds.
About Stellus Capital Investment
Stellus Capital Investment Corporation is a business development company specializing in investments in private middle-market companies. It invests through first lien, second lien, unitranche, and mezzanine debt financing, often with a corresponding equity investment. The fund seeks to invest in companies with an EBITDA between $5 million and $50 million.
Further Reading: Sell-Side Analysts
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