Stellus Capital Investment (NYSE:SCM) Releases Quarterly Earnings Results, Misses Expectations By $0.48 EPS

Key Points

• Stellus Capital reported quarterly EPS of -$0.22, missing the $0.26 analyst consensus by $0.48; revenue was $22.4 million, slightly below the $22.99 million estimate.
• The company declared a monthly dividend of $0.0833 per share, equivalent to $1.00 annually and a 13.7% yield; its payout ratio is 98.04%.
• Analysts’ average rating is Hold, with an average price target of $9.25. Shares traded at $7.27 on Monday.

Stellus Capital Investment (NYSE:SCM - Get Free Report) released its earnings results on Monday. The investment management company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.26 by ($0.48), FiscalAI reports. Stellus Capital Investment had a net margin of 30.66% and a return on equity of 9.09%. The company had revenue of $22.40 million during the quarter, compared to analysts' expectations of $22.99 million.

Stellus Capital Investment Stock Up 0.0%

Shares of SCM traded up $0.00 during midday trading on Monday, reaching $7.27. 111,796 shares of the company were exchanged, compared to its average volume of 198,885. The stock has a 50-day moving average price of $7.56 and a 200-day moving average price of $8.93. The company has a market cap of $207.08 million, a price-to-earnings ratio of 7.13 and a beta of 0.70. Stellus Capital Investment has a 1-year low of $6.54 and a 1-year high of $13.55. The company has a current ratio of 0.06, a quick ratio of 0.06 and a debt-to-equity ratio of 1.04.

Stellus Capital Investment Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Friday, January 15th. Shareholders of record on Thursday, December 31st will be paid a dividend of $0.0833 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 13.7%. The ex-dividend date is Thursday, December 31st. Stellus Capital Investment's payout ratio is currently 98.04%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on SCM. Weiss Ratings downgraded 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 lowered their price objective on shares of Stellus Capital Investment from $11.00 to $10.50 and set a "buy" rating for the company in a research note on Wednesday, August 12th. Finally, Keefe, Bruyette & Woods lowered their price objective on shares of Stellus Capital Investment from $9.00 to $8.00 and set a "market perform" rating for the company in a research note on Monday, July 20th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Stellus Capital Investment currently has an average rating of "Hold" and an average target price of $9.25.

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.

Stellus Capital Investment is externally managed by Stellus Capital Management, an investment management firm founded by Robert T.

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