Stellus Capital Investment (NYSE:SCM) Price Target Cut to $10.50 by Analysts at LADENBURG THALM/SH SH

Key Points

• LADENBURG THALM/SH SH cut Stellus Capital Investment’s price target to $10.50 from $11.00 but maintained a “buy” rating, implying roughly 20.8% upside from the reported $8.69 share price.
• Analyst sentiment is mixed overall: Stellus has an average “hold” rating and a consensus price target of $9.25, with ratings ranging from buy to sell.
• The company reported quarterly earnings of $0.26 per share, matching estimates, while revenue of $30.98 million exceeded the $24.38 million analyst consensus.

Stellus Capital Investment (NYSE:SCM - Get Free Report) had its target price decreased by research analysts at LADENBURG THALM/SH SH from $11.00 to $10.50 in a research note issued to investors on Wednesday,Benzinga reports. The firm presently has a "buy" rating on the investment management company's stock. LADENBURG THALM/SH SH's target price points to a potential upside of 20.83% from the stock's current price.

Several other equities analysts have also recently weighed in on the company. Wall Street Zen upgraded Stellus Capital Investment from a "sell" rating to a "hold" rating in a report on Saturday, May 16th. Zacks Research upgraded shares of Stellus Capital Investment from a "strong sell" rating to a "hold" rating in a report on Friday, May 15th. Weiss Ratings downgraded shares of Stellus Capital Investment from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, July 28th. Finally, Keefe, Bruyette & Woods cut their price target on shares of Stellus Capital Investment from $9.00 to $8.00 and set a "market perform" rating on the stock in a research note on Monday, July 20th. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Stellus Capital Investment presently has an average rating of "Hold" and an average target price of $9.25.

Stellus Capital Investment Trading Down 1.3%

Stellus Capital Investment stock traded down $0.11 during mid-day trading on Wednesday, hitting $8.69. 93,703 shares of the company's stock were exchanged, compared to its average volume of 223,709. The firm has a market capitalization of $251.55 million, a P/E ratio of 8.52 and a beta of 0.65. Stellus Capital Investment has a fifty-two week low of $6.83 and a fifty-two week high of $15.04. The company has a quick ratio of 0.04, a current ratio of 0.04 and a debt-to-equity ratio of 1.05. The company's 50 day simple moving average is $8.19 and its 200-day simple moving average is $9.41.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last posted its earnings results on Monday, August 10th. The investment management company reported $0.26 earnings per share for the quarter, hitting the consensus estimate of $0.26. Stellus Capital Investment had a return on equity of 9.07% and a net margin of 30.66%.The firm had revenue of $30.98 million for the quarter, compared to analyst estimates of $24.38 million. On average, equities analysts anticipate that Stellus Capital Investment will post 1.05 earnings per share for the current year.

Insider Activity at Stellus Capital Investment

In other news, Director J Tim Arnoult acquired 9,000 shares of Stellus Capital Investment stock in a transaction dated Tuesday, May 19th. The stock was bought at an average cost of $9.05 per share, with a total value of $81,450.00. Following the completion of the transaction, the director directly owned 50,869 shares of the company's stock, valued at approximately $460,364.45. This represents a 21.50% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 4.24% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Stellus Capital Investment

Institutional investors have recently bought and sold shares of the company. Corient Private Wealth LLC grew 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 acquiring an additional 295,068 shares in the last quarter. LPL Financial LLC boosted its holdings in Stellus Capital Investment by 695.6% during the fourth quarter. LPL Financial LLC now owns 309,045 shares of the investment management company's stock worth $3,919,000 after purchasing an additional 270,199 shares during the last quarter. Two Sigma Investments LP boosted its holdings in Stellus Capital Investment by 3.3% during the third quarter. Two Sigma Investments LP now owns 225,264 shares of the investment management company's stock worth $2,942,000 after purchasing an additional 7,132 shares during the last quarter. Condor Capital Management increased its stake in Stellus Capital Investment by 5.7% in the 4th quarter. Condor Capital Management now owns 214,438 shares of the investment management company's stock valued at $2,719,000 after buying an additional 11,592 shares during the last quarter. Finally, Sunbelt Securities Inc. lifted its position in Stellus Capital Investment by 31.5% during the 1st quarter. Sunbelt Securities Inc. now owns 203,190 shares of the investment management company's stock worth $1,871,000 after buying an additional 48,617 shares in the last quarter. Institutional investors own 13.22% of the company's stock.

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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