Stellus Capital Investment Corp (NYSE:SCM) was the recipient of a large increase in short interest in the month of August. As of August 31st, there was short interest totalling 189,100 shares, an increase of 11.2% from the July 31st total of 170,000 shares. Approximately 1.1% of the shares of the company are sold short. Based on an average trading volume of 112,000 shares, the days-to-cover ratio is currently 1.7 days.
Several large investors have recently made changes to their positions in the business. BlackRock Inc. grew its position in shares of Stellus Capital Investment by 26.3% during the 2nd quarter. BlackRock Inc. now owns 89,105 shares of the investment management company’s stock worth $1,232,000 after purchasing an additional 18,534 shares in the last quarter. Virtus ETF Advisers LLC bought a new position in shares of Stellus Capital Investment during the second quarter valued at $3,481,000. Eagle Global Advisors LLC bought a new position in shares of Stellus Capital Investment during the second quarter valued at $177,000. Resources Investment Advisors LLC. bought a new position in shares of Stellus Capital Investment during the second quarter valued at $201,000. Finally, Russell Investments Group Ltd. raised its stake in shares of Stellus Capital Investment by 462.2% during the second quarter. Russell Investments Group Ltd. now owns 18,243 shares of the investment management company’s stock valued at $252,000 after acquiring an additional 14,998 shares during the last quarter. Hedge funds and other institutional investors own 18.00% of the company’s stock.
SCM has been the topic of several research analyst reports. TheStreet raised shares of Stellus Capital Investment from a “c+” rating to a “b” rating in a report on Wednesday, June 5th. Oppenheimer cut shares of Stellus Capital Investment from an “outperform” rating to a “market perform” rating in a report on Monday, August 12th. CIBC restated a “market perform” rating on shares of Stellus Capital Investment in a research report on Monday, August 12th. Finally, Zacks Investment Research lowered shares of Stellus Capital Investment from a “hold” rating to a “sell” rating in a research report on Saturday. One equities research analyst has rated the stock with a sell rating and three have issued a hold rating to the stock. The company currently has a consensus rating of “Hold” and an average price target of $15.00.
Stellus Capital Investment (NYSE:SCM) last announced its earnings results on Friday, August 9th. The investment management company reported $0.29 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.32 by ($0.03). Stellus Capital Investment had a return on equity of 9.79% and a net margin of 47.43%. The business had revenue of $14.17 million for the quarter, compared to analyst estimates of $14.16 million. As a group, equities research analysts forecast that Stellus Capital Investment will post 1.26 EPS for the current fiscal year.
The firm also recently announced a dividend, which will be paid on Tuesday, October 15th. Shareholders of record on Monday, September 30th will be given a dividend of $0.113 per share. The ex-dividend date is Friday, September 27th. Stellus Capital Investment’s payout ratio is presently 95.77%.
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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