Stellus Capital Investment (NYSE:SCM) Share Price Crosses Below 200 Day Moving Average - Time to Sell?

Key Points

• Stellus Capital Investment shares fell below their 200-day moving average, trading as low as $8.12 versus the $8.86 average, and last changed hands near $8.16.
• Analysts have an overall “Hold” rating on SCM, with one Buy and three Holds; the average price target is $9.25, though some firms recently lowered their targets.
• The company reported quarterly earnings in line with estimates at $0.26 per share while exceeding revenue expectations, and declared a monthly $0.0833 dividend—an annualized yield of approximately 12.3%.

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report)'s stock price passed below its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $8.86 and traded as low as $8.12. Stellus Capital Investment shares last traded at $8.1580, with a volume of 120,995 shares traded.

Analyst Ratings Changes

SCM has been the subject of several research reports. Keefe, Bruyette & Woods reduced their price target on shares of Stellus Capital Investment from $9.00 to $8.00 and set a "market perform" rating for the company in a research report on Monday, July 20th. LADENBURG THALM/SH SH cut their target price on shares of Stellus Capital Investment from $11.00 to $10.50 and set a "buy" rating for the company in a research report on Wednesday, August 12th. Finally, Weiss Ratings raised shares of Stellus Capital Investment from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, August 11th. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $9.25.

Stellus Capital Investment Stock Down 0.3%

The company has a quick ratio of 0.06, a current ratio of 0.06 and a debt-to-equity ratio of 1.04. The company has a fifty day simple moving average of $8.21 and a 200-day simple moving average of $8.86. The firm has a market cap of $232.34 million, a P/E ratio of 8.00 and a beta of 0.67.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last posted its quarterly earnings data on Monday, August 10th. The investment management company reported $0.26 EPS for the quarter, hitting the consensus estimate of $0.26. The firm had revenue of $30.98 million for the quarter, compared to the consensus estimate of $24.38 million. Stellus Capital Investment had a return on equity of 9.09% and a net margin of 30.66%. On average, equities analysts anticipate that Stellus Capital Investment Corporation will post 1.05 earnings per share for the current year.

Stellus Capital Investment Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be issued a dividend of $0.0833 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a c) annualized dividend and a yield of 12.3%. Stellus Capital Investment's payout ratio is currently 98.04%.

Institutional Trading of Stellus Capital Investment

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Corient Private Wealth LP purchased a new stake in Stellus Capital Investment in the 2nd quarter worth $2,398,000. Corient Private Wealth LLC boosted its stake in shares of Stellus Capital Investment by 2.6% in the fourth quarter. Corient Private Wealth LLC now owns 281,166 shares of the investment management company's stock worth $3,565,000 after acquiring an additional 7,066 shares during the period. Legal & General Group Plc bought a new position in shares of Stellus Capital Investment in the second quarter worth about $2,009,000. Condor Capital Management grew its position in shares of Stellus Capital Investment by 5.7% during the fourth quarter. Condor Capital Management now owns 214,438 shares of the investment management company's stock worth $2,719,000 after purchasing an additional 11,592 shares in the last quarter. Finally, Sunbelt Securities Inc. raised its stake in Stellus Capital Investment by 31.5% during the 1st quarter. Sunbelt Securities Inc. now owns 203,190 shares of the investment management company's stock valued at $1,871,000 after purchasing an additional 48,617 shares during the period. 13.22% of the stock is owned by hedge funds and other 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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