Zacks Investment Research upgraded shares of Stellus Capital Investment (NYSE:SCM) from a hold rating to a buy rating in a research report report published on Thursday morning, Zacks.com reports. The firm currently has $16.00 price objective on the investment management company’s stock.
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. “
Other research analysts have also issued reports about the company. Oppenheimer lowered Stellus Capital Investment from an outperform rating to a market perform rating in a research report on Monday, August 12th. CIBC reissued a market perform rating on shares of Stellus Capital Investment in a research report on Monday, August 12th.
Shares of SCM stock traded down $0.01 during mid-day trading on Thursday, hitting $14.15. The stock had a trading volume of 75,149 shares, compared to its average volume of 80,812. Stellus Capital Investment has a 12-month low of $11.65 and a 12-month high of $15.30. The firm has a market capitalization of $267.93 million, a P/E ratio of 9.96 and a beta of 0.70. The firm’s 50-day moving average is $13.69 and its two-hundred day moving average is $13.83. The company has a debt-to-equity ratio of 0.71, a current ratio of 0.19 and a quick ratio of 0.28.
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, hitting the Thomson Reuters’ consensus estimate of $0.31. Stellus Capital Investment had a return on equity of 9.44% and a net margin of 45.89%. The business had revenue of $15.52 million during the quarter, compared to analysts’ expectations of $14.61 million. Analysts expect that Stellus Capital Investment will post 1.32 EPS for the current year.
The business also recently declared a dividend, which was paid on Friday, November 15th. Stockholders of record on Thursday, October 31st were given a $0.1133 dividend. 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 payout ratio is presently 95.77%.
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. NEXT Financial Group Inc bought a new position in shares of Stellus Capital Investment in the 2nd quarter worth $41,000. Eagle Global Advisors LLC bought a new position in shares of Stellus Capital Investment in the 2nd quarter worth $177,000. Resources Investment Advisors LLC. bought a new position in shares of Stellus Capital Investment in the 2nd quarter worth $201,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of Stellus Capital Investment in the 2nd quarter worth $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. 17.82% of the stock is owned by hedge funds and other institutional investors.
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.
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