Stellus Capital Investment Corporation (SCM) - What Are Analysts Thinking About This Stock?

Key Points

• Analysts are broadly neutral: Stellus Capital Investment has a consensus “Hold” rating from six analysts, with an average 12-month price target of $9.25.
• Quarterly results were mixed: The company reported EPS of $0.26, in line with estimates, while revenue of $22.4 million fell short of the $22.99 million forecast.
• The dividend is high but exceeds earnings: Stellus announced a monthly dividend equivalent to $1.00 annually, a 14.6% yield; its reported payout ratio is 175.44%.

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) has earned a consensus recommendation of "Hold" from the six brokerages that are currently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell recommendation, four have issued a hold recommendation and one has assigned a buy recommendation to the company. The average 12-month price target among analysts that have updated their coverage on the stock in the last year is $9.25.

Several equities analysts recently issued reports on the company. Loop Capital reiterated a "neutral" rating on shares of Stellus Capital Investment in a research report on Wednesday. Weiss Ratings lowered shares of Stellus Capital Investment from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, October 8th. LADENBURG THALM/SH SH reduced their price target on shares of Stellus Capital Investment from $11.00 to $10.50 and set a "buy" rating for the company in a report on Wednesday, August 12th. Keefe, Bruyette & Woods dropped their price objective on shares of Stellus Capital Investment from $9.00 to $8.00 and set a "market perform" rating on the stock in a report on Monday, July 20th. Finally, Noble Financial reaffirmed a "neutral" rating on shares of Stellus Capital Investment in a research report on Wednesday.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Integrated Wealth Concepts LLC acquired a new stake in Stellus Capital Investment in the 2nd quarter valued at approximately $26,000. Sanders Morris Harris LLC acquired a new position in Stellus Capital Investment during the 2nd quarter worth approximately $117,000. Gallagher Capital Advisors LLC bought a new position in shares of Stellus Capital Investment during the 1st quarter worth approximately $313,000. Janney Montgomery Scott LLC bought a new position in shares of Stellus Capital Investment during the 1st quarter worth approximately $399,000. Finally, Doliver Advisors LP grew its stake in shares of Stellus Capital Investment by 452.9% during the 2nd quarter. Doliver Advisors LP now owns 55,292 shares of the investment management company's stock worth $466,000 after acquiring an additional 45,292 shares in the last quarter. 13.22% of the stock is owned by institutional investors and hedge funds.

Stellus Capital Investment Trading Down 0.8%

Shares of NYSE SCM traded down $0.06 during midday trading on Wednesday, reaching $6.83. 116,247 shares of the stock were exchanged, compared to its average volume of 198,490. Stellus Capital Investment has a 12 month low of $6.54 and a 12 month high of $13.55. The company has a market capitalization of $194.38 million, a price-to-earnings ratio of 11.97 and a beta of 0.70. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.06 and a quick ratio of 0.06. The business has a 50-day simple moving average of $7.50 and a two-hundred day simple moving average of $8.87.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last posted its earnings results on Monday, November 9th. The investment management company reported $0.26 earnings per share for the quarter, hitting the consensus estimate of $0.26. Stellus Capital Investment had a return on equity of 8.56% and a net margin of 17.92%. The firm had revenue of $22.40 million for the quarter, compared to analyst estimates of $22.99 million. As a group, equities research analysts expect that Stellus Capital Investment will post 1.05 EPS for the current year.

Stellus Capital Investment Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Friday, January 15th. Shareholders of record on Thursday, December 31st will be issued a dividend of $0.0833 per share. This represents a $1.00 dividend on an annualized basis and a yield of 14.6%. The ex-dividend date is Thursday, December 31st. Stellus Capital Investment's dividend payout ratio is 175.44%.

Stellus Capital Investment Company Profile

Stellus Capital Investment Corporation NYSE: SCM is a business development company that invests in privately owned, middle-market companies. The company seeks to generate income and, to a lesser extent, capital appreciation by providing financing to businesses that may have limited access to traditional sources of capital. Stellus primarily invests in senior secured loans and other debt investments, while also making select subordinated debt and equity investments. Its portfolio companies operate across a range of industries, and the company generally focuses on established businesses with experienced management teams and the potential for stable cash flow.

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