Stellus Capital Investment (NYSE:SCM) Stock Rating Lowered by Wall Street Zen

Key Points

• Stellus Capital Investment has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, which may indicate declining investor confidence.
• Keefe, Bruyette & Woods also lowered its target price for the stock from $13.50 to $13.00, signaling expectations of weaker performance.
• Despite the downgrades, Stellus Capital Investment's stock saw a slight increase of 0.6% on the market, opening at $14.84.

Stellus Capital Investment (NYSE:SCM - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

Separately, Keefe, Bruyette & Woods cut their target price on shares of Stellus Capital Investment from $13.50 to $13.00 and set a "market perform" rating on the stock in a research note on Tuesday, April 8th.

Stellus Capital Investment Trading Down 0.2%

Shares of SCM traded down $0.04 during trading hours on Friday, hitting $14.37. 182,492 shares of the stock were exchanged, compared to its average volume of 161,464. Stellus Capital Investment has a fifty-two week low of $11.19 and a fifty-two week high of $15.56. The company has a debt-to-equity ratio of 1.09, a current ratio of 0.08 and a quick ratio of 0.08. The business has a 50-day moving average of $14.04 and a 200-day moving average of $13.96. The firm has a market capitalization of $408.25 million, a P/E ratio of 9.98 and a beta of 0.88.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last issued its earnings results on Monday, May 12th. The investment management company reported $0.37 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.37. The business had revenue of $24.95 million for the quarter, compared to analyst estimates of $26.76 million. Stellus Capital Investment had a net margin of 36.35% and a return on equity of 11.93%. On average, research analysts expect that Stellus Capital Investment will post 1.74 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in SCM. Raymond James Financial Inc. bought a new position in shares of Stellus Capital Investment during the fourth quarter valued at about $3,328,000. Ethos Financial Group LLC purchased a new stake in Stellus Capital Investment during the first quarter worth about $2,694,000. Virtu Financial LLC purchased a new stake in Stellus Capital Investment during the first quarter worth about $358,000. Inspire Advisors LLC purchased a new stake in Stellus Capital Investment during the first quarter worth about $343,000. Finally, Muzinich & Co. Inc. increased its holdings in Stellus Capital Investment by 32.5% during the first quarter. Muzinich & Co. Inc. now owns 87,120 shares of the investment management company's stock worth $1,220,000 after buying an additional 21,355 shares during the last quarter. 13.22% of the stock is owned by institutional investors.

Stellus Capital Investment Company Profile

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.