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

Stellus Capital Investment (NYSE:SCM) issued its earnings results on Monday. The investment management company reported $0.27 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.27, Zacks reports. Stellus Capital Investment had a net margin of 26.48% and a return on equity of 10.28%.

Stellus Capital Investment Stock Performance

SCM traded down $0.26 on Monday, hitting $9.49. 232,865 shares of the company’s stock were exchanged, compared to its average volume of 218,841. Stellus Capital Investment has a twelve month low of $8.43 and a twelve month high of $15.39. The company has a current ratio of 0.14, a quick ratio of 0.14 and a debt-to-equity ratio of 1.13. The firm has a market cap of $274.62 million, a PE ratio of 10.09 and a beta of 0.66. The stock has a fifty day moving average of $9.50 and a two-hundred day moving average of $11.28.

Stellus Capital Investment Announces Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be paid a dividend of $0.1133 per share. The ex-dividend date is Tuesday, June 30th. This represents a c) annualized dividend and a yield of 14.3%. Stellus Capital Investment’s dividend payout ratio is 144.68%.

Insiders Place Their Bets

In other news, Director Bruce R. Bilger bought 45,490 shares of the firm’s stock in a transaction on Friday, March 13th. The stock was purchased 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 approximately $1,993,200.70. This trade represents a 24.92% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Robert T. Ladd bought 35,000 shares of the firm’s stock in a transaction on Friday, March 13th. The stock was purchased at an average price of $8.70 per share, with a total value of $304,500.00. Following the transaction, the chief executive officer owned 667,935 shares in the company, valued at $5,811,034.50. The trade was a 5.53% increase in their position. The SEC filing for this purchase provides additional information. In the last 90 days, insiders bought 87,890 shares of company stock worth $766,551. Insiders own 3.99% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in SCM. Corient Private Wealth LLC boosted its holdings in shares of Stellus Capital Investment by 138.9% in the second quarter. Corient Private Wealth LLC now owns 507,526 shares of the investment management company’s stock valued at $7,075,000 after acquiring an additional 295,068 shares in the last quarter. LPL Financial LLC boosted its holdings in shares of Stellus Capital Investment by 695.6% in the fourth quarter. LPL Financial LLC now owns 309,045 shares of the investment management company’s stock valued at $3,919,000 after acquiring an additional 270,199 shares in the last quarter. Advisors Asset Management Inc. boosted its holdings in shares of Stellus Capital Investment by 26.8% in the fourth quarter. Advisors Asset Management Inc. now owns 183,055 shares of the investment management company’s stock valued at $2,321,000 after acquiring an additional 38,733 shares in the last quarter. Aquatic Capital Management LLC boosted its holdings in shares of Stellus Capital Investment by 398.7% in the third quarter. Aquatic Capital Management LLC now owns 18,168 shares of the investment management company’s stock valued at $237,000 after acquiring an additional 14,525 shares in the last quarter. Finally, Jane Street Group LLC bought a new position in shares of Stellus Capital Investment in the first quarter valued at approximately $157,000. 13.22% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. Keefe, Bruyette & Woods cut their target price on shares of Stellus Capital Investment from $13.00 to $9.00 and set a “market perform” rating on the stock in a research note on Monday, March 16th. Zacks Research lowered shares of Stellus Capital Investment from a “hold” rating to a “strong sell” rating in a research note on Thursday, April 16th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Reduce” and an average price target of $9.00.

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.