Stellus Capital Investment (NYSE:SCM) Shares Break Below 200 Day Moving Average - Here's What Happened

Key Points

• Stellus Capital Investment shares fell below their 200-day moving average, reaching $7.38 and last trading near $7.42, compared with a 200-day average of $8.69.
• Analyst sentiment remains cautious: the consensus rating is Hold, with an average price target of $9.25 after several firms reduced their targets.
• The company reported quarterly earnings in line with estimates at $0.26 per share and announced a monthly dividend of $0.0833, equivalent to a 13.5% annualized yield.

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) passed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $8.69 and traded as low as $7.38. Stellus Capital Investment shares last traded at $7.4150, with a volume of 125,856 shares trading hands.

Analysts Set New Price Targets

Several analysts have commented on SCM shares. 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 report on Monday, July 20th. LADENBURG THALM/SH SH reduced their target price on Stellus Capital Investment from $11.00 to $10.50 and set a "buy" rating on the stock in a report on Wednesday, August 12th. Finally, Weiss Ratings raised Stellus Capital Investment from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, August 11th. One analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $9.25.

Stellus Capital Investment Stock Down 2.4%

The company's fifty day moving average price is $8.17 and its 200-day moving average price is $8.69. The stock has a market capitalization of $211.18 million, a PE ratio of 7.27 and a beta of 0.67. The company has a quick ratio of 0.06, a current ratio of 0.06 and a debt-to-equity ratio of 1.04.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last posted its quarterly earnings results on Monday, August 10th. 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 9.09% and a net margin of 30.66%.The company had revenue of $30.98 million for the quarter, compared to the consensus estimate of $24.38 million. Analysts forecast that Stellus Capital Investment Corporation will post 1.05 earnings per share for the current year.

Stellus Capital Investment Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th will be paid a $0.0833 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 13.5%. The ex-dividend date of this dividend is Wednesday, September 30th. Stellus Capital Investment's dividend payout ratio is currently 98.04%.

Hedge Funds Weigh In On Stellus Capital Investment

Several large investors have recently modified their holdings of SCM. Corient Private Wealth LP grew its position in Stellus Capital Investment by 11.5% during the 2nd quarter. Corient Private Wealth LP now owns 284,746 shares of the investment management company's stock valued at $2,398,000 after purchasing an additional 29,267 shares during the last quarter. Corient Private Wealth LLC raised its holdings in 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 buying an additional 7,066 shares during the last quarter. Legal & General Group Plc bought a new position in shares of Stellus Capital Investment in the second quarter worth approximately $2,009,000. Sunbelt Securities Inc. lifted its stake in shares of Stellus Capital Investment by 31.5% in the first quarter. Sunbelt Securities Inc. now owns 203,190 shares of the investment management company's stock worth $1,871,000 after buying an additional 48,617 shares in the last quarter. Finally, BlackRock Inc. purchased a new stake in Stellus Capital Investment during the 2nd quarter valued at $922,000. Hedge funds and other institutional investors own 13.22% of the company's stock.

Stellus Capital Investment Company Profile

Stellus Capital Investment Corporation NYSE: SCM is a business development company that provides customized financing to privately owned middle-market companies. The company primarily invests in debt, including first-lien, second-lien and unitranche loans, and may also make equity investments alongside its loans.

Stellus Capital Investment typically focuses on established companies across a range of industries, with investments designed to support acquisitions, recapitalizations, growth initiatives and other corporate purposes.

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