Stellus Capital Investment (NYSE:SCM) Stock Rating Lowered by Zacks Research

Stellus Capital Investment (NYSE:SCM) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Thursday,Zacks.com reports.

Several other equities analysts also recently commented on SCM. Keefe, Bruyette & Woods dropped 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. Weiss Ratings reissued a “hold (c)” rating on shares of Stellus Capital Investment in a research note on Monday, December 29th. Two analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Reduce” and an average price target of $9.00.

Stellus Capital Investment Price Performance

Shares of NYSE:SCM opened at $10.04 on Thursday. The company has a market cap of $290.51 million, a price-to-earnings ratio of 10.68 and a beta of 0.67. The company has a debt-to-equity ratio of 1.13, a current ratio of 0.14 and a quick ratio of 0.14. The firm has a 50 day simple moving average of $9.89 and a 200 day simple moving average of $11.56. Stellus Capital Investment has a one year low of $8.43 and a one year high of $15.39.

Stellus Capital Investment (NYSE:SCM) last issued its quarterly earnings data on Wednesday, March 11th. The investment management company reported $0.29 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.02). The company had revenue of $23.98 million during the quarter, compared to the consensus estimate of $26.33 million. Stellus Capital Investment had a net margin of 26.48% and a return on equity of 10.28%. Research analysts predict that Stellus Capital Investment will post 1.74 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Bruce R. Bilger acquired 45,490 shares of Stellus Capital Investment stock in a transaction dated Friday, March 13th. The shares were bought at an average cost of $8.74 per share, with a total value of $397,582.60. Following the purchase, the director owned 228,055 shares in the company, valued at $1,993,200.70. This trade represents a 24.92% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO W. Todd Huskinson acquired 5,700 shares of Stellus Capital Investment stock in a transaction dated Friday, March 13th. The stock was purchased at an average cost of $8.79 per share, for a total transaction of $50,103.00. Following the completion of the purchase, the chief financial officer owned 54,297 shares in the company, valued at approximately $477,270.63. The trade was a 11.73% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders have bought 87,890 shares of company stock valued at $766,551. 3.99% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Stellus Capital Investment

Institutional investors have recently modified their holdings of the company. Geneos Wealth Management Inc. bought a new stake in shares of Stellus Capital Investment in the 2nd quarter valued at $25,000. Laurel Wealth Advisors LLC bought a new stake in shares of Stellus Capital Investment in the 4th quarter valued at $26,000. JPMorgan Chase & Co. bought a new stake in shares of Stellus Capital Investment in the 3rd quarter valued at $28,000. BNP Paribas Financial Markets bought a new stake in shares of Stellus Capital Investment in the 2nd quarter valued at $60,000. Finally, Kestra Advisory Services LLC bought a new stake in shares of Stellus Capital Investment in the 4th quarter valued at $62,000. 13.22% of the stock is owned by 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.