Zacks Research Downgrades Stellus Capital Investment (NYSE:SCM) to Strong Sell

Stellus Capital Investment (NYSE:SCM) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Tuesday,Zacks.com reports.

Several other research firms have also recently weighed in on SCM. Weiss Ratings reiterated a “buy (b-)” rating on shares of Stellus Capital Investment in a research report on Tuesday. Wall Street Zen cut Stellus Capital Investment from a “hold” rating to a “sell” rating in a research report on Saturday, October 11th. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Stellus Capital Investment has an average rating of “Hold” and a consensus target price of $13.00.

Stellus Capital Investment Stock Down 1.3%

Shares of SCM opened at $12.25 on Tuesday. Stellus Capital Investment has a 52 week low of $11.19 and a 52 week high of $15.56. The firm has a market cap of $348.04 million, a P/E ratio of 8.45 and a beta of 0.90. The firm’s 50-day simple moving average is $13.89 and its 200 day simple moving average is $13.69. The company has a debt-to-equity ratio of 1.27, a quick ratio of 0.28 and a current ratio of 0.28.

Stellus Capital Investment (NYSE:SCM) last posted its quarterly earnings data on Tuesday, December 14th. The investment management company reported $0.31 earnings per share for the quarter. The firm had revenue of $27.03 million for the quarter. Stellus Capital Investment had a return on equity of 11.06% and a net margin of 38.24%. On average, analysts forecast that Stellus Capital Investment will post 1.74 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of SCM. Geneos Wealth Management Inc. bought a new position in shares of Stellus Capital Investment in the second quarter worth $25,000. Ameritas Advisory Services LLC bought a new position in shares of Stellus Capital Investment in the second quarter worth $34,000. BNP Paribas Financial Markets bought a new position in shares of Stellus Capital Investment in the second quarter worth $60,000. Chilton Capital Management LLC increased its position in shares of Stellus Capital Investment by 10.6% in the first quarter. Chilton Capital Management LLC now owns 8,409 shares of the investment management company’s stock worth $118,000 after purchasing an additional 809 shares during the period. Finally, XTX Topco Ltd bought a new position in shares of Stellus Capital Investment in the first quarter worth $150,000. Institutional investors own 13.22% of the company’s stock.

Stellus Capital Investment Company Profile

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 prefers to invest in US and Canada.