Stellus Capital Investment (NYSE:SCM) Raised to Hold at Wall Street Zen

Stellus Capital Investment (NYSE:SCM) was upgraded by equities research analysts at Wall Street Zen from a “sell” rating to a “hold” rating in a research note issued to investors on Saturday.

SCM has been the topic of a number of other research reports. Zacks Research cut Stellus Capital Investment from a “hold” rating to a “strong sell” rating in a research note on Thursday, April 16th. Keefe, Bruyette & Woods reduced their price objective on shares of Stellus Capital Investment from $13.00 to $9.00 and set a “market perform” rating for the company in a research note on Monday, March 16th. Finally, LADENBURG THALM/SH SH decreased their target price on shares of Stellus Capital Investment from $12.00 to $11.00 and set a “buy” rating for the company in a report on Wednesday, May 13th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $10.00.

Stellus Capital Investment Stock Performance

SCM opened at $9.11 on Friday. The firm has a market cap of $263.73 million, a PE ratio of 11.11 and a beta of 0.66. The company has a quick ratio of 0.04, a current ratio of 0.04 and a debt-to-equity ratio of 1.05. The business has a fifty day simple moving average of $9.44 and a 200-day simple moving average of $11.20. Stellus Capital Investment has a fifty-two week low of $8.43 and a fifty-two week high of $15.39.

Stellus Capital Investment (NYSE:SCM) last announced its earnings results on Monday, May 11th. The investment management company reported $0.27 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.27. Stellus Capital Investment had a return on equity of 9.69% and a net margin of 23.59%.The company had revenue of $23,292.93 billion for the quarter, compared to analyst estimates of $24.81 million. As a group, equities analysts predict that Stellus Capital Investment will post 1.06 EPS for the current fiscal year.

Insider Activity

In other Stellus Capital Investment news, CEO Robert T. Ladd acquired 35,000 shares of Stellus Capital Investment stock in a transaction that occurred on Friday, March 13th. The stock was purchased at an average cost of $8.70 per share, with a total value of $304,500.00. Following the purchase, the chief executive officer owned 667,935 shares in the company, valued at approximately $5,811,034.50. The trade was a 5.53% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Bruce R. Bilger acquired 45,490 shares of the firm’s stock in a transaction on Friday, March 13th. The shares were acquired at an average price of $8.74 per share, with a total value of $397,582.60. Following the completion of the transaction, the director directly owned 228,055 shares in the company, valued at approximately $1,993,200.70. This trade represents a 24.92% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have acquired 87,890 shares of company stock worth $766,551. 4.24% of the stock is owned by corporate insiders.

Institutional Trading of Stellus Capital Investment

A number of hedge funds have recently made changes to their positions in the stock. Geneos Wealth Management Inc. acquired a new stake in shares of Stellus Capital Investment during the second quarter worth approximately $25,000. Laurel Wealth Advisors LLC acquired a new position in Stellus Capital Investment in the 4th quarter valued at approximately $26,000. JPMorgan Chase & Co. acquired a new position in Stellus Capital Investment in the 3rd quarter valued at approximately $28,000. BNP Paribas Financial Markets purchased a new stake in Stellus Capital Investment in the 2nd quarter worth approximately $60,000. Finally, Kestra Advisory Services LLC purchased a new stake in Stellus Capital Investment in the 4th quarter worth approximately $62,000. 13.22% of the stock is owned by hedge funds and other institutional investors.

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.