Keefe, Bruyette & Woods Cuts Stellus Capital Investment (NYSE:SCM) Price Target to $8.00

Key Points

• Keefe, Bruyette & Woods lowered its price target on Stellus Capital Investment from $9.00 to $8.00 while keeping a “market perform” rating, implying about 5.6% upside from the current share price.
• The broader analyst view on SCM remains cautious: the stock has an average Hold rating and a consensus target price of $9.50, with recent target cuts and rating upgrades/holds from several firms.
• Stellus Capital Investment recently reported EPS of $0.27, matching estimates, though revenue came in below expectations; the stock was trading near its 52-week low at $7.58 and has seen insider and institutional buying activity.

Stellus Capital Investment (NYSE:SCM - Get Free Report) had its target price decreased by equities research analysts at Keefe, Bruyette & Woods from $9.00 to $8.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has a "market perform" rating on the investment management company's stock. Keefe, Bruyette & Woods' price objective suggests a potential upside of 5.60% from the stock's current price.

Several other equities research analysts also recently issued reports on the company. LADENBURG THALM/SH SH cut their price target on Stellus Capital Investment from $12.00 to $11.00 and set a "buy" rating for the company in a report on Wednesday, May 13th. Weiss Ratings raised shares of Stellus Capital Investment from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, July 10th. Zacks Research upgraded shares of Stellus Capital Investment from a "strong sell" rating to a "hold" rating in a research note on Friday, May 15th. Finally, Wall Street Zen raised shares of Stellus Capital Investment from a "sell" rating to a "hold" rating in a report on Saturday, May 16th. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $9.50.

Stellus Capital Investment Stock Down 0.4%

Shares of SCM stock opened at $7.58 on Monday. Stellus Capital Investment has a 12-month low of $7.56 and a 12-month high of $15.29. The company has a quick ratio of 0.04, a current ratio of 0.04 and a debt-to-equity ratio of 1.05. The firm has a fifty day moving average of $8.69 and a 200-day moving average of $10.05. The company has a market capitalization of $219.33 million, a price-to-earnings ratio of 9.24 and a beta of 0.64.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last announced its earnings results on Monday, May 11th. The investment management company reported $0.27 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.27. Stellus Capital Investment had a return on equity of 9.69% and a net margin of 23.59%.The business had revenue of $17.45 million for the quarter, compared to analyst estimates of $24.80 million. As a group, equities research analysts predict that Stellus Capital Investment will post 1.06 earnings per share for the current fiscal year.

Insider Buying and Selling at Stellus Capital Investment

In other news, Director J Tim Arnoult purchased 9,000 shares of Stellus Capital Investment stock in a transaction dated Tuesday, May 19th. The shares were bought at an average cost of $9.05 per share, for a total transaction of $81,450.00. Following the completion of the acquisition, the director owned 50,869 shares in the company, valued at approximately $460,364.45. This trade represents a 21.50% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders have acquired a total of 10,700 shares of company stock worth $96,523 over the last quarter. Insiders own 4.24% of the company's stock.

Institutional Trading of Stellus Capital Investment

Several institutional investors have recently added to or reduced their stakes in SCM. Geneos Wealth Management Inc. acquired a new position in shares of Stellus Capital Investment in the 2nd quarter worth approximately $25,000. Laurel Wealth Advisors LLC acquired a new position in Stellus Capital Investment in the fourth quarter valued at $26,000. JPMorgan Chase & Co. bought a new stake in Stellus Capital Investment during the third quarter valued at $28,000. BNP Paribas Financial Markets bought a new stake in Stellus Capital Investment during the second quarter valued at $60,000. Finally, Kestra Advisory Services LLC acquired a new stake in Stellus Capital Investment during the 4th quarter worth about $62,000. 13.22% of the stock is currently owned by institutional investors.

About Stellus Capital Investment

Stellus Capital Investment Corporation NYSE: SCM is a closed-end, externally managed business development company that provides debt and equity financing to middle market companies in the United States. As an investment vehicle specializing in private credit, Stellus focuses on originating and structuring senior secured loans, unitranche facilities, mezzanine debt, and equity co-investments tailored to the unique needs of growing businesses. Its flexible capital solutions are designed to support acquisitions, recapitalizations, growth initiatives, and balance sheet refinancings.

Operating under an evergreen structure, Stellus Capital Investment partners with a diverse group of portfolio companies across industries such as manufacturing, healthcare, business services, and specialty finance.

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