Short Interest in Stellus Capital Investment Corporation (NYSE:SCM) Grows By 127.3%

Key Points

• Short Interest Surge: Stellus Capital Investment Corporation saw a significant increase in short interest, rising by 127.3% in July, with a total of 542,000 shares sold short as of July 31st.
• Dividend Announcement: The company announced a dividend of $0.1333 per share, to be paid on October 15th, which corresponds to a remarkable yield of 1,110.0%.
• Quarterly Earnings Results: Stellus Capital reported earnings of $0.35 EPS for the last quarter, matching analysts' expectations, with revenue slightly below estimates at $25.70 million.

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) saw a large increase in short interest during the month of July. As of July 31st, there was short interest totaling 542,000 shares, anincreaseof127.3% from the July 15th total of 238,500 shares. Approximately2.0% of the company's stock are sold short. Based on an average daily trading volume, of 139,600 shares, the days-to-cover ratio is presently 3.9 days. Based on an average daily trading volume, of 139,600 shares, the days-to-cover ratio is presently 3.9 days. Approximately2.0% of the company's stock are sold short.

Stellus Capital Investment Price Performance

NYSE SCM traded down $0.03 during trading hours on Friday, hitting $14.66. The company had a trading volume of 177,274 shares, compared to its average volume of 168,175. Stellus Capital Investment has a 52 week low of $11.19 and a 52 week high of $15.56. The firm has a 50 day simple moving average of $14.31 and a 200 day simple moving average of $13.95. The company has a debt-to-equity ratio of 1.27, a quick ratio of 0.28 and a current ratio of 0.28. The firm has a market capitalization of $416.64 million, a price-to-earnings ratio of 10.11 and a beta of 0.86.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The investment management company reported $0.35 EPS for the quarter, hitting analysts' consensus estimates of $0.35. Stellus Capital Investment had a return on equity of 11.06% and a net margin of 38.24%. The business had revenue of $25.70 million for the quarter, compared to analysts' expectations of $26.15 million. Equities research analysts expect that Stellus Capital Investment will post 1.74 earnings per share for the current year.

Stellus Capital Investment Announces Dividend

The company also recently announced a -- dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Tuesday, September 30th will be issued a $0.1333 dividend. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a yield of 1,110.0%. Stellus Capital Investment's dividend payout ratio is currently 110.34%.

Analysts Set New Price Targets

Separately, Wall Street Zen upgraded Stellus Capital Investment from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. CANADA LIFE ASSURANCE Co boosted its holdings in shares of Stellus Capital Investment by 8.5% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 26,769 shares of the investment management company's stock worth $373,000 after purchasing an additional 2,101 shares during the period. Corient Private Wealth LLC lifted its stake in shares of Stellus Capital Investment by 138.9% during the 2nd quarter. Corient Private Wealth LLC now owns 507,526 shares of the investment management company's stock worth $7,075,000 after purchasing an additional 295,068 shares during the last quarter. Group One Trading LLC lifted its stake in shares of Stellus Capital Investment by 112.3% during the 2nd quarter. Group One Trading LLC now owns 11,401 shares of the investment management company's stock worth $159,000 after purchasing an additional 6,030 shares during the last quarter. BNP Paribas Financial Markets purchased a new stake in shares of Stellus Capital Investment during the 2nd quarter worth $60,000. Finally, Brevan Howard Capital Management LP purchased a new stake in Stellus Capital Investment in the second quarter valued at about $154,000. Institutional investors own 13.22% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.