Stellus Capital Investment (NYSE:SCM) Issues Quarterly Earnings Results

Key Points

• Stellus reported a quarterly EPS of $0.29, missing consensus of $0.31, and revenue of $23.98M versus $26.33M expected, while posting a net margin of 29.77% and ROE of 10.72%.
• The company declared a monthly dividend of $0.1133 (ex-dividend Mar 31), implying a roughly 14.3% yield
• Shares fell ~1% to $9.48, trading below their 50- and 200-day averages, with a market cap of $274.4M and a P/E of 8.7, while analysts maintain a consensus "Hold" and $13 average price target.

Stellus Capital Investment (NYSE:SCM - Get Free Report) issued its quarterly earnings results on Wednesday. The investment management company reported $0.29 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.31 by ($0.02), FiscalAI reports. Stellus Capital Investment had a net margin of 29.77% and a return on equity of 10.72%. The business had revenue of $23.98 million for the quarter, compared to analysts' expectations of $26.33 million.

Stellus Capital Investment Stock Down 1.0%

SCM traded down $0.10 during trading on Wednesday, hitting $9.48. 263,580 shares of the company's stock traded hands, compared to its average volume of 232,716. The company's 50 day simple moving average is $11.87 and its two-hundred day simple moving average is $12.49. The company has a current ratio of 0.10, a quick ratio of 0.10 and a debt-to-equity ratio of 1.24. Stellus Capital Investment has a 12-month low of $9.29 and a 12-month high of $15.39. The stock has a market capitalization of $274.42 million, a price-to-earnings ratio of 8.70 and a beta of 0.68.

Stellus Capital Investment Dividend Announcement

The firm also recently disclosed a monthly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be given a $0.1133 dividend. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a c) annualized dividend and a yield of 14.3%. Stellus Capital Investment's dividend payout ratio is 124.77%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Corient Private Wealth LLC increased its holdings in Stellus Capital Investment by 138.9% in the 2nd quarter. Corient Private Wealth LLC now owns 507,526 shares of the investment management company's stock worth $7,075,000 after buying an additional 295,068 shares in the last quarter. LPL Financial LLC lifted its stake in Stellus Capital Investment by 695.6% during the 4th quarter. LPL Financial LLC now owns 309,045 shares of the investment management company's stock valued at $3,919,000 after acquiring an additional 270,199 shares during the period. Two Sigma Investments LP lifted its stake in Stellus Capital Investment by 3.3% during the 3rd quarter. Two Sigma Investments LP now owns 225,264 shares of the investment management company's stock valued at $2,942,000 after acquiring an additional 7,132 shares during the period. Advisors Asset Management Inc. boosted its holdings in shares of Stellus Capital Investment by 26.8% during the 4th quarter. Advisors Asset Management Inc. now owns 183,055 shares of the investment management company's stock valued at $2,321,000 after acquiring an additional 38,733 shares during the last quarter. Finally, Inspire Advisors LLC grew its stake in shares of Stellus Capital Investment by 1.4% in the fourth quarter. Inspire Advisors LLC now owns 107,787 shares of the investment management company's stock worth $1,367,000 after acquiring an additional 1,525 shares during the period. 13.22% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of research analysts have issued reports on SCM shares. Weiss Ratings reiterated a "hold (c)" rating on shares of Stellus Capital Investment in a research note on Monday, December 29th. Zacks Research raised Stellus Capital Investment from a "strong sell" rating to a "hold" rating in a research note on Thursday, November 13th. Three research analysts have rated the stock with a Hold rating, According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $13.00.

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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