Stellus Capital Investment Corp (NYSE:SCM) announced a quarterly dividend on Tuesday, June 30th, Zacks reports. Stockholders of record on Wednesday, July 15th will be paid a dividend of 0.25 per share by the investment management company on Friday, July 31st. This represents a $1.00 dividend on an annualized basis and a dividend yield of 13.09%. The ex-dividend date of this dividend is Tuesday, July 14th.
Stellus Capital Investment has a payout ratio of 129.5% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Stellus Capital Investment to earn $1.11 per share next year, which means the company may not be able to cover its $1.36 annual dividend with an expected future payout ratio of 122.5%.
Shares of NYSE:SCM traded up $0.17 during trading on Thursday, reaching $7.64. 210 shares of the stock were exchanged, compared to its average volume of 136,113. The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.19 and a current ratio of 0.19. Stellus Capital Investment has a 12-month low of $4.10 and a 12-month high of $15.04. The firm has a market cap of $141.77 million, a price-to-earnings ratio of -5.34 and a beta of 1.14. The firm’s 50-day moving average price is $7.72 and its 200 day moving average price is $10.54.
A number of analysts have recently issued reports on the company. Janney Montgomery Scott cut Stellus Capital Investment from a “buy” rating to a “neutral” rating in a report on Wednesday, April 1st. National Securities assumed coverage on Stellus Capital Investment in a report on Wednesday, May 6th. They set a “neutral” rating and a $8.00 target price for the company. TheStreet cut Stellus Capital Investment from a “c” rating to a “d+” rating in a report on Thursday, May 28th. Oppenheimer reiterated a “hold” rating on shares of Stellus Capital Investment in a report on Wednesday, May 13th. Finally, ValuEngine lowered Stellus Capital Investment from a “hold” rating to a “sell” rating in a research report on Thursday, April 2nd. Two research analysts have rated the stock with a sell rating and four have assigned a hold rating to the company. The stock has an average rating of “Hold” and an average target price of $12.00.
In related news, Director Dean D’angelo purchased 5,000 shares of Stellus Capital Investment stock in a transaction that occurred on Thursday, June 11th. The shares were purchased at an average cost of $7.50 per share, with a total value of $37,500.00. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Robert T. Ladd purchased 13,000 shares of Stellus Capital Investment stock in a transaction that occurred on Tuesday, May 19th. The shares were bought at an average cost of $7.01 per share, for a total transaction of $91,130.00. The disclosure for this purchase can be found here. Insiders own 5.41% of the company’s stock.
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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