Stellus Capital Investment (NYSE:SCM) Releases Quarterly Earnings Results, Misses Expectations By $0.48 EPS

Stellus Capital Investment (NYSE:SCM) posted its quarterly earnings data on Monday. The investment management company reported ($0.22) earnings per share for the quarter, missing the consensus estimate of $0.26 by ($0.48), FiscalAI reports. Stellus Capital Investment had a return on equity of 9.09% and a net margin of 30.66%. The firm had revenue of $22.40 million for the quarter, compared to analyst estimates of $22.99 million.

Stellus Capital Investment Price Performance

SCM traded up $0.00 during midday trading on Monday, hitting $7.27. The company had a trading volume of 111,796 shares, compared to its average volume of 198,885. The company has a debt-to-equity ratio of 1.04, a quick ratio of 0.06 and a current ratio of 0.06. The company has a market capitalization of $207.08 million, a PE ratio of 7.13 and a beta of 0.70. Stellus Capital Investment has a twelve month low of $6.54 and a twelve month high of $13.55. The firm’s 50-day simple moving average is $7.56 and its 200-day simple moving average is $8.93.

Stellus Capital Investment Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Friday, January 15th. Shareholders of record on Thursday, December 31st will be issued a dividend of $0.0833 per share. The ex-dividend date of this dividend is Thursday, December 31st. This represents a $1.00 dividend on an annualized basis and a yield of 13.7%. Stellus Capital Investment’s dividend payout ratio is currently 98.04%.

Analysts Set New Price Targets

Several research analysts have recently commented on SCM shares. LADENBURG THALM/SH SH reduced their target price on Stellus Capital Investment from $11.00 to $10.50 and set a “buy” rating on the stock in a report on Wednesday, August 12th. Weiss Ratings cut Stellus Capital Investment from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, October 8th. Finally, Keefe, Bruyette & Woods dropped their price target on Stellus Capital Investment from $9.00 to $8.00 and set a “market perform” rating for the company in a report on Monday, July 20th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $9.25.

Stellus Capital Investment Company Profile

Stellus Capital Investment Corporation (NYSE: SCM) is a business development company that invests in privately owned, middle-market companies. The company seeks to generate income and, to a lesser extent, capital appreciation by providing financing to businesses that may have limited access to traditional sources of capital.

Stellus primarily invests in senior secured loans and other debt investments, while also making select subordinated debt and equity investments. Its portfolio companies operate across a range of industries, and the company generally focuses on established businesses with experienced management teams and the potential for stable cash flow.

Stellus Capital Investment is externally managed by Stellus Capital Management, an investment management firm founded by Robert T.