Stellus Capital Investment (SCM) Lifted to “Hold” at ValuEngine

ValuEngine upgraded shares of Stellus Capital Investment (NYSE:SCM) from a sell rating to a hold rating in a research note issued to investors on Monday.

SCM has been the topic of several other reports. Zacks Investment Research raised Stellus Capital Investment from a hold rating to a buy rating and set a $15.00 price objective on the stock in a research report on Saturday, November 10th. Keefe, Bruyette & Woods reissued a hold rating and issued a $14.00 price objective on shares of Stellus Capital Investment in a research report on Thursday, August 9th.

Stellus Capital Investment stock traded down $0.03 during midday trading on Monday, reaching $13.12. The stock had a trading volume of 11,089 shares, compared to its average volume of 87,714. Stellus Capital Investment has a twelve month low of $11.07 and a twelve month high of $14.10. The stock has a market capitalization of $204.05 million, a P/E ratio of 10.84 and a beta of 0.68. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 0.85.

Stellus Capital Investment (NYSE:SCM) last released its quarterly earnings data on Wednesday, November 7th. The investment management company reported $0.35 EPS for the quarter, beating the consensus estimate of $0.34 by $0.01. Stellus Capital Investment had a return on equity of 8.59% and a net margin of 60.59%. The company had revenue of $14.49 million for the quarter, compared to analyst estimates of $13.58 million. As a group, sell-side analysts predict that Stellus Capital Investment will post 1.28 EPS for the current year.

The firm also recently announced a monthly dividend, which will be paid on Tuesday, January 15th. Stockholders of record on Monday, December 31st will be given a dividend of $0.1133 per share. This represents a $1.36 dividend on an annualized basis and a dividend yield of 10.37%. The ex-dividend date of this dividend is Friday, December 28th. Stellus Capital Investment’s payout ratio is 112.40%.

In other Stellus Capital Investment news, insider Robert T. Ladd bought 6,500 shares of the company’s stock in a transaction dated Monday, November 12th. The shares were acquired at an average cost of $12.87 per share, with a total value of $83,655.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 5.40% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Freestone Capital Holdings LLC purchased a new stake in shares of Stellus Capital Investment during the third quarter worth about $4,311,000. Stephens Inc. AR purchased a new stake in shares of Stellus Capital Investment during the second quarter worth about $257,000. Finally, LPL Financial LLC purchased a new stake in shares of Stellus Capital Investment during the first quarter worth about $138,000. 20.48% of the stock is currently owned by institutional investors and hedge funds.

Stellus Capital Investment Company Profile

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.

Further Reading: 52-Week High/Low Prices For Stock Selection

To view ValuEngine’s full report, visit ValuEngine’s official website.

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