Stellus Capital Investment (NYSE:SCM) Downgraded by Zacks Investment Research to “Sell”

Zacks Investment Research downgraded shares of Stellus Capital Investment (NYSE:SCM) from a hold rating to a sell rating in a research note published on Wednesday, Zacks.com reports.

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. “

SCM has been the topic of several other research reports. CIBC reiterated a market perform rating on shares of Stellus Capital Investment in a research report on Monday. Oppenheimer cut Stellus Capital Investment from an outperform rating to a market perform rating in a research report on Monday. Finally, TheStreet upgraded Stellus Capital Investment from a c+ rating to a b rating in a research report on Wednesday, June 5th. One investment analyst has rated the stock with a sell rating and three have issued a hold rating to the company’s stock. The stock has a consensus rating of Hold and an average target price of $15.00.



SCM traded down $0.07 on Wednesday, hitting $12.93. 3,003 shares of the company traded hands, compared to its average volume of 106,418. The stock’s 50 day moving average is $14.09. The company has a debt-to-equity ratio of 0.73, a current ratio of 0.36 and a quick ratio of 0.36. The firm has a market cap of $246.91 million, a PE ratio of 9.22 and a beta of 0.67. Stellus Capital Investment has a 12-month low of $11.65 and a 12-month high of $15.30.

Stellus Capital Investment (NYSE:SCM) last posted its quarterly earnings data on Friday, August 9th. The investment management company reported $0.29 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.32 by ($0.03). The company had revenue of $14.17 million for the quarter, compared to analysts’ expectations of $14.16 million. Stellus Capital Investment had a net margin of 47.43% and a return on equity of 10.09%. Equities analysts expect that Stellus Capital Investment will post 1.29 EPS for the current fiscal year.

The firm also recently announced a dividend, which will be paid on Friday, September 13th. Shareholders of record on Friday, August 30th will be given a dividend of $0.113 per share. The ex-dividend date is Thursday, August 29th. Stellus Capital Investment’s payout ratio is 95.77%.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SCM. Virtus ETF Advisers LLC acquired a new position in Stellus Capital Investment during the 2nd quarter worth approximately $3,481,000. Raymond James & Associates increased its position in Stellus Capital Investment by 88.5% during the 1st quarter. Raymond James & Associates now owns 182,641 shares of the investment management company’s stock worth $2,584,000 after purchasing an additional 85,763 shares during the period. Acadian Asset Management LLC increased its position in Stellus Capital Investment by 205.0% during the 2nd quarter. Acadian Asset Management LLC now owns 95,540 shares of the investment management company’s stock worth $1,321,000 after purchasing an additional 64,217 shares during the period. Raymond James Financial Services Advisors Inc. acquired a new position in Stellus Capital Investment during the 1st quarter worth approximately $816,000. Finally, Algert Global LLC acquired a new position in Stellus Capital Investment during the 1st quarter worth approximately $308,000. Institutional investors own 17.24% of the company’s stock.

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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