Stellus Capital Investment (SCM) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of Stellus Capital Investment (NYSE:SCM) from a buy rating to a hold rating in a research report report published on Wednesday morning.

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. “

Separately, ValuEngine cut Stellus Capital Investment from a hold rating to a sell rating in a research note on Thursday, November 1st.

NYSE SCM opened at $13.62 on Wednesday. The company has a market capitalization of $215.22 million, a price-to-earnings ratio of 11.26 and a beta of 0.67. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 0.85. Stellus Capital Investment has a 52 week low of $11.07 and a 52 week high of $14.00.

Stellus Capital Investment (NYSE:SCM) last released its earnings results on Wednesday, November 7th. The investment management company reported $0.35 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.34 by $0.01. The firm had revenue of $14.49 million for the quarter, compared to analysts’ expectations of $13.58 million. Stellus Capital Investment had a return on equity of 8.59% and a net margin of 60.59%. As a group, equities analysts expect that Stellus Capital Investment will post 1.29 EPS for the current year.

The business also recently disclosed a monthly dividend, which will be paid on Tuesday, January 15th. Stockholders of record on Monday, December 31st will be paid a dividend of $0.1133 per share. This represents a $1.36 dividend on an annualized basis and a dividend yield of 9.98%. The ex-dividend date is Friday, December 28th. Stellus Capital Investment’s dividend payout ratio is currently 112.40%.

In related news, CFO W. Todd Huskinson acquired 4,600 shares of the company’s stock in a transaction dated Wednesday, December 19th. The shares were bought at an average price of $12.59 per share, for a total transaction of $57,914.00. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Robert T. Ladd acquired 3,000 shares of the company’s stock in a transaction dated Wednesday, December 19th. The shares were bought at an average price of $12.26 per share, for a total transaction of $36,780.00. The disclosure for this purchase can be found here. In the last quarter, insiders have bought 115,100 shares of company stock worth $1,438,159. Company insiders own 5.40% of the company’s stock.

An institutional investor recently bought a new position in Stellus Capital Investment stock. Freestone Capital Holdings LLC purchased a new stake in Stellus Capital Investment Corp (NYSE:SCM) during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 316,044 shares of the investment management company’s stock, valued at approximately $4,311,000. Freestone Capital Holdings LLC owned 1.98% of Stellus Capital Investment at the end of the most recent quarter. 22.63% of the stock is owned by hedge funds and other institutional investors.

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 seeks to invest in companies with an EBITDA between $5 million and $50 million.

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