Stellus Capital Investment Corp (SCM) Expected to Post Earnings of $0.34 Per Share

Equities research analysts expect Stellus Capital Investment Corp (NYSE:SCM) to report earnings of $0.34 per share for the current quarter, Zacks reports. Three analysts have provided estimates for Stellus Capital Investment’s earnings, with the highest EPS estimate coming in at $0.35 and the lowest estimate coming in at $0.34. Stellus Capital Investment posted earnings per share of $0.29 during the same quarter last year, which would suggest a positive year-over-year growth rate of 17.2%. The company is scheduled to issue its next quarterly earnings report on Thursday, November 8th.

According to Zacks, analysts expect that Stellus Capital Investment will report full year earnings of $1.28 per share for the current financial year, with EPS estimates ranging from $1.25 to $1.29. For the next year, analysts anticipate that the firm will report earnings of $1.50 per share, with EPS estimates ranging from $1.40 to $1.57. Zacks Investment Research’s earnings per share averages are a mean average based on a survey of research analysts that cover Stellus Capital Investment.

Stellus Capital Investment (NYSE:SCM) last released its earnings results on Wednesday, August 8th. The investment management company reported $0.30 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.31 by ($0.01). Stellus Capital Investment had a net margin of 59.39% and a return on equity of 8.16%. The business had revenue of $12.62 million during the quarter, compared to analysts’ expectations of $12.21 million.

A number of research analysts have commented on SCM shares. ValuEngine cut shares of Stellus Capital Investment from a “hold” rating to a “sell” rating in a research note on Monday, July 2nd. Zacks Investment Research upgraded shares of Stellus Capital Investment from a “hold” rating to a “strong-buy” rating and set a $16.00 price target for the company in a research note on Saturday, August 11th. Keefe, Bruyette & Woods reiterated a “hold” rating and issued a $14.00 target price on shares of Stellus Capital Investment in a research note on Thursday, August 9th. Finally, TheStreet cut shares of Stellus Capital Investment from a “b” rating to a “c+” rating in a research note on Wednesday, July 11th. Three research analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus target price of $14.83.

SCM stock traded down $0.21 during trading on Thursday, reaching $13.66. 65,580 shares of the stock were exchanged, compared to its average volume of 57,466. The company has a market cap of $218.89 million, a PE ratio of 11.29 and a beta of 0.56. The company has a quick ratio of 0.21, a current ratio of 0.21 and a debt-to-equity ratio of 0.78. Stellus Capital Investment has a twelve month low of $11.07 and a twelve month high of $14.29.

The company also recently declared a monthly dividend, which was paid on Friday, September 14th. Stockholders of record on Friday, August 31st were issued a $0.1133 dividend. This represents a $1.36 annualized dividend and a dividend yield of 9.95%. The ex-dividend date was Thursday, August 30th. Stellus Capital Investment’s dividend payout ratio (DPR) is 112.40%.

Several hedge funds have recently made changes to their positions in the company. LPL Financial LLC bought a new stake in Stellus Capital Investment in the 1st quarter valued at $138,000. Stephens Inc. AR bought a new stake in Stellus Capital Investment during the 2nd quarter worth about $257,000. Oppenheimer & Co. Inc. lifted its position in Stellus Capital Investment by 29.1% during the 1st quarter. Oppenheimer & Co. Inc. now owns 38,563 shares of the investment management company’s stock worth $444,000 after buying an additional 8,685 shares in the last quarter. Gables Capital Management Inc. bought a new stake in Stellus Capital Investment during the 1st quarter worth about $1,532,000. Finally, Freestone Capital Holdings LLC lifted its position in Stellus Capital Investment by 37.2% during the 1st quarter. Freestone Capital Holdings LLC now owns 318,254 shares of the investment management company’s stock worth $3,663,000 after buying an additional 86,252 shares in the last quarter. 21.45% of the stock is owned by 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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