Stellus Capital Investment (NYSE:SCM) Stock Price Passes Above 200-Day Moving Average - Should You Sell?

Key Points

• Stellus Capital Investment's stock price has surpassed its 200-day moving average of $13.87, trading as high as $14.13 recently.
• Wall Street analysts raised their rating for Stellus Capital from a "sell" to a "hold," with a consensus price target of $13.00.
• The company recently declared a monthly dividend of $0.1333 per share, with a notable annualized dividend yield of 11.4%.

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $13.87 and traded as high as $14.13. Stellus Capital Investment shares last traded at $14.03, with a volume of 273,877 shares.

Wall Street Analyst Weigh In

Separately, Wall Street Zen raised Stellus Capital Investment from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. One analyst has rated the stock with a Hold rating, According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $13.00.

Stellus Capital Investment Price Performance

The company has a debt-to-equity ratio of 1.27, a current ratio of 0.28 and a quick ratio of 0.28. The company has a market capitalization of $398.68 million, a PE ratio of 9.68 and a beta of 0.87. The stock's 50 day simple moving average is $14.53 and its 200-day simple moving average is $13.85.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The investment management company reported $0.35 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.35. The company had revenue of $25.70 million for the quarter, compared to analyst estimates of $26.15 million. Stellus Capital Investment had a net margin of 38.24% and a return on equity of 11.06%. As a group, equities analysts forecast that Stellus Capital Investment Corporation will post 1.74 earnings per share for the current fiscal year.

Stellus Capital Investment Dividend Announcement

The firm also recently declared a monthly dividend, which was paid on Monday, September 15th. Shareholders of record on Friday, August 29th were paid a dividend of $0.1333 per share. The ex-dividend date was Friday, August 29th. This represents a c) dividend on an annualized basis and a yield of 11.4%. Stellus Capital Investment's dividend payout ratio is 110.34%.

Hedge Funds Weigh In On Stellus Capital Investment

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Geneos Wealth Management Inc. purchased a new position in shares of Stellus Capital Investment in the 2nd quarter valued at about $25,000. CANADA LIFE ASSURANCE Co boosted its stake in shares of Stellus Capital Investment by 8.5% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 26,769 shares of the investment management company's stock valued at $373,000 after buying an additional 2,101 shares during the period. Corient Private Wealth LLC boosted its stake in shares of 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 valued at $7,075,000 after buying an additional 295,068 shares during the period. Group One Trading LLC boosted its stake in shares of Stellus Capital Investment by 112.3% in the 2nd quarter. Group One Trading LLC now owns 11,401 shares of the investment management company's stock valued at $159,000 after buying an additional 6,030 shares during the period. Finally, BNP Paribas Financial Markets purchased a new position in shares of Stellus Capital Investment in the 2nd quarter valued at about $60,000. Hedge funds and other institutional investors own 13.22% of the company's stock.

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.