Stellus Capital Investment (NYSE:SCM) Director J Tim Arnoult Purchases 9,000 Shares

Key Points

• Director J Tim Arnoult bought 9,000 Stellus Capital Investment shares at $9.05 each, a $81,450 purchase that lifted his direct ownership by 21.5% to 50,869 shares.
• Arnoult also made two other recent insider purchases, adding 1,000 shares on May 13 and 700 shares on June 23, signaling continued buying activity.
• Stellus Capital Investment recently reported quarterly EPS of $0.27, matching estimates, and announced a monthly dividend of $0.1133 per share, implying a high annualized yield of about 17.0%.

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) Director J Tim Arnoult bought 9,000 shares of Stellus Capital Investment stock in a transaction on Tuesday, May 19th. The stock was acquired at an average price of $9.05 per share, for a total transaction of $81,450.00. Following the transaction, the director directly owned 50,869 shares of the company's stock, valued at approximately $460,364.45. This trade represents a 21.50% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.

J Tim Arnoult also recently made the following trade(s):

• On Tuesday, June 23rd, J Tim Arnoult acquired 700 shares of Stellus Capital Investment stock. The shares were acquired at an average cost of $8.29 per share, with a total value of $5,803.00.
• On Wednesday, May 13th, J Tim Arnoult acquired 1,000 shares of Stellus Capital Investment stock. The shares were acquired at an average cost of $9.27 per share, with a total value of $9,270.00.

Stellus Capital Investment Trading Up 0.8%

SCM traded up $0.07 on Thursday, hitting $8.02. The company had a trading volume of 313,154 shares, compared to its average volume of 191,098. The firm has a market cap of $232.03 million, a P/E ratio of 9.77 and a beta of 0.63. Stellus Capital Investment Corporation has a 1 year low of $7.78 and a 1 year high of $15.39. The company's fifty day moving average price is $9.15 and its 200 day moving average price is $10.54. The company has a current ratio of 0.04, a quick ratio of 0.04 and a debt-to-equity ratio of 1.05.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last announced its earnings results on Monday, May 11th. The investment management company reported $0.27 earnings per share for the quarter, hitting the consensus estimate of $0.27. Stellus Capital Investment had a net margin of 23.59% and a return on equity of 9.69%. The company had revenue of $17.45 million during the quarter, compared to analyst estimates of $24.80 million. As a group, equities analysts expect that Stellus Capital Investment Corporation will post 1.06 earnings per share for the current year.

Stellus Capital Investment Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th will be issued a $0.1133 dividend. This represents a c) annualized dividend and a dividend yield of 17.0%. The ex-dividend date is Tuesday, June 30th. Stellus Capital Investment's dividend payout ratio is currently 165.85%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of SCM. Sunbelt Securities Inc. increased its stake in shares of Stellus Capital Investment by 31.5% during the first quarter. Sunbelt Securities Inc. now owns 203,190 shares of the investment management company's stock worth $1,871,000 after acquiring an additional 48,617 shares during the period. Gallagher Capital Advisors LLC acquired a new position in Stellus Capital Investment during the first quarter worth about $313,000. PFG Investments LLC increased its holdings in Stellus Capital Investment by 7.2% in the first quarter. PFG Investments LLC now owns 74,661 shares of the investment management company's stock valued at $688,000 after buying an additional 5,016 shares in the last quarter. Janney Montgomery Scott LLC purchased a new position in Stellus Capital Investment in the 1st quarter valued at approximately $399,000. Finally, Corient Private Wealth LLC raised its stake in shares of Stellus Capital Investment by 2.6% during the 4th 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. 13.22% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

SCM has been the subject of several research reports. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Stellus Capital Investment in a research report on Friday, June 12th. Zacks Research upgraded Stellus Capital Investment from a "strong sell" rating to a "hold" rating in a research note on Friday, May 15th. Keefe, Bruyette & Woods decreased their target price 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. Wall Street Zen raised Stellus Capital Investment from a "sell" rating to a "hold" rating in a report on Saturday, May 16th. Finally, LADENBURG THALM/SH SH cut their price objective on shares of Stellus Capital Investment from $12.00 to $11.00 and set a "buy" rating on the stock in a report on Wednesday, May 13th. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $10.00.

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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