Stellus Capital Investment (NYSE:SCM) Upgraded to “Buy” at Zacks Investment Research

Stellus Capital Investment (NYSE:SCM) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Thursday, Zacks.com reports. The firm currently has a $16.00 price target on the investment management company’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 12.44% from the company’s previous close.

According to Zacks, “Stellus Capital Investment Corporation is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private middle-market companies. “

A number of other equities research analysts have also recently issued reports on SCM. Oppenheimer cut shares of Stellus Capital Investment from an “outperform” rating to a “market perform” rating in a research note on Monday, August 12th. CIBC reaffirmed a “market perform” rating on shares of Stellus Capital Investment in a report on Monday, August 12th.

NYSE:SCM opened at $14.23 on Thursday. The business has a 50 day moving average of $14.02 and a 200 day moving average of $13.83. The company has a market capitalization of $269.09 million, a price-to-earnings ratio of 10.02 and a beta of 0.71. Stellus Capital Investment has a 1-year low of $11.65 and a 1-year high of $15.30. The company has a debt-to-equity ratio of 0.71, a current ratio of 0.19 and a quick ratio of 0.19.

Stellus Capital Investment (NYSE:SCM) last issued its earnings results on Thursday, November 7th. The investment management company reported $0.31 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.31. The business had revenue of $15.52 million during the quarter, compared to analyst estimates of $14.61 million. Stellus Capital Investment had a return on equity of 9.44% and a net margin of 45.89%. As a group, sell-side analysts anticipate that Stellus Capital Investment will post 1.32 EPS for the current year.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. NEXT Financial Group Inc bought a new stake in shares of Stellus Capital Investment in the 2nd quarter valued at about $41,000. Stifel Financial Corp bought a new position in shares of Stellus Capital Investment in the third quarter worth approximately $144,000. Eagle Global Advisors LLC bought a new position in shares of Stellus Capital Investment in the second quarter worth approximately $177,000. Resources Investment Advisors LLC. purchased a new position in shares of Stellus Capital Investment in the second quarter worth $201,000. Finally, Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Stellus Capital Investment in the second quarter worth $234,000. Hedge funds and other institutional investors own 16.43% of the company’s stock.

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.

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