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

Stellus Capital Investment (NYSE:SCM) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Tuesday, 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. “

Shares of SCM stock opened at $14.44 on Tuesday. Stellus Capital Investment has a 1-year low of $12.65 and a 1-year high of $15.30. The stock’s fifty day moving average price is $14.34 and its 200 day moving average price is $13.91. The company has a debt-to-equity ratio of 0.71, a current ratio of 0.19 and a quick ratio of 0.19. The company has a market cap of $272.06 million, a price-to-earnings ratio of 10.17 and a beta of 0.67.

Stellus Capital Investment (NYSE:SCM) last announced its earnings results on Thursday, November 7th. The investment management company reported $0.31 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.31. Stellus Capital Investment had a return on equity of 9.44% and a net margin of 45.89%. The firm had revenue of $15.52 million for the quarter, compared to the consensus estimate of $14.61 million. As a group, equities research analysts anticipate that Stellus Capital Investment will post 1.27 earnings per share for the current year.

A number of hedge funds have recently made changes to their positions in SCM. JPMorgan Chase & Co. grew its stake in Stellus Capital Investment by 81.2% during the 2nd quarter. JPMorgan Chase & Co. now owns 43,536 shares of the investment management company’s stock valued at $601,000 after purchasing an additional 19,507 shares during the last quarter. Russell Investments Group Ltd. grew its stake in Stellus Capital Investment by 462.2% during the 2nd quarter. Russell Investments Group Ltd. now owns 18,243 shares of the investment management company’s stock valued at $252,000 after purchasing an additional 14,998 shares during the last quarter. BlackRock Inc. grew its stake in Stellus Capital Investment by 26.3% during the 2nd quarter. BlackRock Inc. now owns 89,105 shares of the investment management company’s stock valued at $1,232,000 after purchasing an additional 18,534 shares during the last quarter. Confluence Investment Management LLC grew its stake in Stellus Capital Investment by 2.5% during the 3rd quarter. Confluence Investment Management LLC now owns 480,043 shares of the investment management company’s stock valued at $6,543,000 after purchasing an additional 11,933 shares during the last quarter. Finally, Gables Capital Management Inc. grew its stake in Stellus Capital Investment by 6.2% during the 3rd quarter. Gables Capital Management Inc. now owns 138,212 shares of the investment management company’s stock valued at $1,886,000 after purchasing an additional 8,114 shares during the last quarter. Hedge funds and other institutional investors own 16.43% 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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