Stellus Capital Investment Corporation (NYSE:SCM) Short Interest Up 18.5% in March

Key Points

• Short interest rose 18.5% in March to 797,134 shares (about 2.9% of shares outstanding), leaving a short-interest ratio of roughly 2.3 days based on average daily volume.
• Top executives increased their stakes on March 13, with CEO Robert Ladd buying 35,000 shares at $8.70 and CFO W. Todd Huskinson buying 5,700 shares at $8.79, leaving insiders owning about 3.99% of the company.
• Stellus declared a monthly dividend of $0.1133 (ex-dividend March 31) implying a 14.8% yield

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) was the recipient of a large increase in short interest in the month of March. As of March 13th, there was short interest totaling 797,134 shares, an increase of 18.5% from the February 26th total of 672,959 shares. Based on an average daily volume of 341,749 shares, the short-interest ratio is presently 2.3 days. Approximately 2.9% of the shares of the stock are short sold.

Analyst Ratings Changes

SCM has been the subject of several research analyst reports. Keefe, Bruyette & Woods dropped their price target on Stellus Capital Investment from $13.00 to $9.00 and set a "market perform" rating for the company in a research note on Monday, March 16th. Weiss Ratings reissued a "hold (c)" rating on shares of Stellus Capital Investment in a report on Monday, December 29th. Three investment analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $9.00.

Insider Activity

In other news, CFO W. Todd Huskinson purchased 5,700 shares of Stellus Capital Investment stock in a transaction dated Friday, March 13th. The stock was purchased at an average cost of $8.79 per share, for a total transaction of $50,103.00. Following the transaction, the chief financial officer directly owned 54,297 shares of the company's stock, valued at approximately $477,270.63. This trade represents a 11.73% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Robert T. Ladd acquired 35,000 shares of the company's stock in a transaction that occurred on Friday, March 13th. The shares were acquired at an average cost of $8.70 per share, with a total value of $304,500.00. Following the purchase, the chief executive officer directly owned 667,935 shares of the company's stock, valued at $5,811,034.50. This trade represents a 5.53% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought 87,890 shares of company stock worth $766,551 in the last three months. Corporate insiders own 3.99% of the company's stock.

Institutional Investors Weigh In On Stellus Capital Investment

Institutional investors have recently bought and sold shares of the stock. Sumitomo Mitsui Trust Group Inc. increased its stake in shares of Stellus Capital Investment by 65.9% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 156,050 shares of the investment management company's stock valued at $2,038,000 after buying an additional 62,002 shares during the period. Sunbelt Securities Inc. lifted its stake in Stellus Capital Investment by 390.7% in the third quarter. Sunbelt Securities Inc. now owns 146,133 shares of the investment management company's stock worth $1,909,000 after acquiring an additional 116,352 shares during the period. Inspire Advisors LLC lifted its position in shares of Stellus Capital Investment by 69.9% in the 3rd quarter. Inspire Advisors LLC now owns 106,262 shares of the investment management company's stock worth $1,388,000 after purchasing an additional 43,732 shares during the period. Corient Private Wealth LLC boosted its position in Stellus Capital Investment by 19.4% during the 2nd quarter. Corient Private Wealth LLC now owns 253,763 shares of the investment management company's stock valued at $3,537,000 after acquiring an additional 41,305 shares in the last quarter. Finally, Muzinich & Co. Inc. boosted its position in shares of Stellus Capital Investment by 43.7% during the third quarter. Muzinich & Co. Inc. now owns 206,893 shares of the investment management company's stock valued at $2,702,000 after purchasing an additional 62,888 shares in the last quarter. 13.22% of the stock is currently owned by hedge funds and other institutional investors.

Stellus Capital Investment Trading Up 0.8%

Shares of SCM traded up $0.08 during mid-day trading on Tuesday, reaching $9.22. The company's stock had a trading volume of 227,544 shares, compared to its average volume of 299,119. Stellus Capital Investment has a 52 week low of $8.43 and a 52 week high of $15.39. The stock has a market cap of $266.80 million, a PE ratio of 9.80 and a beta of 0.68. The company's fifty day moving average price is $10.71 and its two-hundred day moving average price is $11.92. The company has a current ratio of 0.14, a quick ratio of 0.14 and a debt-to-equity ratio of 1.13.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last released its earnings results on Wednesday, March 11th. The investment management company reported $0.29 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.02). The business had revenue of $23.98 million for the quarter, compared to the consensus estimate of $26.33 million. Stellus Capital Investment had a net margin of 26.48% and a return on equity of 10.28%. On average, analysts predict that Stellus Capital Investment will post 1.74 earnings per share for the current fiscal year.

Stellus Capital Investment Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st will be issued a $0.1133 dividend. The ex-dividend date is Tuesday, March 31st. This represents a c) annualized dividend and a dividend yield of 14.8%. Stellus Capital Investment's payout ratio is currently 144.68%.

Stellus Capital Investment Company Profile

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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