Short Interest in Stellus Capital Investment Corporation (NYSE:SCM) Declines By 43.8%

Key Points

• Short interest in Stellus Capital Investment Corporation (NYSE:SCM) declined by 43.8% in September, reducing from 692,600 shares to 388,900 shares.
• The company announced a monthly dividend of $0.1333 per share, with a yield of 13.0%, set to be paid on January 15th.
• Research analysts have mixed sentiments on the stock, with ratings ranging from a strong sell to a buy, and an average price target of $13.00.

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) was the recipient of a large decrease in short interest during the month of September. As of September 30th, there was short interest totaling 388,900 shares, a decrease of 43.8% from the September 15th total of 692,600 shares. Based on an average daily volume of 194,600 shares, the short-interest ratio is currently 2.0 days. Based on an average daily volume of 194,600 shares, the short-interest ratio is currently 2.0 days.

Stellus Capital Investment Stock Performance

SCM traded up $0.17 during trading on Tuesday, hitting $12.30. The stock had a trading volume of 179,989 shares, compared to its average volume of 244,196. The firm has a market cap of $349.57 million, a PE ratio of 8.48 and a beta of 0.90. Stellus Capital Investment has a 12 month low of $11.19 and a 12 month high of $15.56. The company has a current ratio of 0.28, a quick ratio of 0.28 and a debt-to-equity ratio of 1.27. The company has a 50 day simple moving average of $13.69 and a 200-day simple moving average of $13.65.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last announced its earnings results on Tuesday, December 14th. The investment management company reported $0.31 EPS for the quarter. The firm had revenue of $27.03 million for the quarter. Stellus Capital Investment had a net margin of 38.24% and a return on equity of 11.06%. Analysts expect that Stellus Capital Investment will post 1.74 EPS for the current year.

Stellus Capital Investment Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Thursday, January 15th. Shareholders of record on Wednesday, December 31st will be given a $0.1333 dividend. This represents a c) annualized dividend and a yield of 13.0%. The ex-dividend date is Wednesday, December 31st. Stellus Capital Investment's dividend payout ratio (DPR) is currently 110.34%.

Institutional Trading of Stellus Capital Investment

Several institutional investors have recently made changes to their positions in the business. Muzinich & Co. Inc. boosted its position in shares of Stellus Capital Investment by 43.7% during the 3rd quarter. Muzinich & Co. Inc. now owns 206,893 shares of the investment management company's stock valued at $2,702,000 after acquiring an additional 62,888 shares in the last quarter. Corient Private Wealth LLC raised its stake in shares of Stellus Capital Investment by 19.4% in the second quarter. Corient Private Wealth LLC now owns 253,763 shares of the investment management company's stock worth $3,537,000 after acquiring an additional 41,305 shares during the last quarter. Geneos Wealth Management Inc. bought a new position in shares of Stellus Capital Investment in the second quarter worth about $25,000. CANADA LIFE ASSURANCE Co raised its stake in shares of Stellus Capital Investment by 8.5% in the second quarter. CANADA LIFE ASSURANCE Co now owns 26,769 shares of the investment management company's stock worth $373,000 after acquiring an additional 2,101 shares during the last quarter. Finally, Group One Trading LLC raised its stake in shares of Stellus Capital Investment by 112.3% during the second quarter. Group One Trading LLC now owns 11,401 shares of the investment management company's stock worth $159,000 after buying an additional 6,030 shares during the last quarter. 13.22% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. Zacks Research cut shares of Stellus Capital Investment from a "hold" rating to a "strong sell" rating in a report on Tuesday, October 14th. Wall Street Zen downgraded shares of Stellus Capital Investment from a "hold" rating to a "sell" rating in a research report on Saturday, October 11th. Finally, Weiss Ratings restated a "buy (b-)" rating on shares of Stellus Capital Investment in a research report on Tuesday, October 14th. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $13.00.

About Stellus Capital Investment

Stellus Capital Investment Corporation is a business development company specializing in investments in private middle-market companies. It invests through first lien, second lien, unitranche, and mezzanine debt financing, often with a corresponding equity investment. The fund prefers to invest in US and Canada.

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