Stellus Capital Investment (NYSE:SCM) Shares Cross Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Stellus Capital Investment (NYSE: SCM) stock price has surged above its 200-day moving average, indicating a potential upward trend, with the last trading price reported at $14.02.
• Analysts have recently downgraded the stock, with Wall Street Zen changing its rating from "hold" to "sell," and Keefe, Bruyette & Woods lowering their price target to $13.00.
• Stellus Capital Investment recently announced a dividend of $0.1333 per share, reflecting a high yield of 1,110.0%, despite a dividend payout ratio of 111.11%.

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) shares crossed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $13.96 and traded as high as $14.10. Stellus Capital Investment shares last traded at $14.02, with a volume of 158,733 shares changing hands.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen cut shares of Stellus Capital Investment from a "hold" rating to a "sell" rating in a research note on Saturday, July 26th.

Stellus Capital Investment Trading Up 1.9%

The company has a 50 day simple moving average of $14.16 and a 200 day simple moving average of $13.96. The company has a market capitalization of $412.83 million, a PE ratio of 10.02 and a beta of 0.86. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.08 and a current ratio of 0.08.

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. Stellus Capital Investment had a return on equity of 11.10% and a net margin of 38.24%. The firm had revenue of $25.70 million for the quarter, compared to analyst estimates of $26.15 million. Analysts anticipate that Stellus Capital Investment Corporation will post 1.74 earnings per share for the current year.

Stellus Capital Investment Announces Dividend

The firm also recently announced a -- dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Tuesday, September 30th will be given a $0.1333 dividend. This represents a dividend yield of 1,110.0%. The ex-dividend date is Tuesday, September 30th. Stellus Capital Investment's dividend payout ratio is 111.11%.

Hedge Funds Weigh In On Stellus Capital Investment

Hedge funds and other institutional investors have recently modified their holdings of the business. Condor Capital Management boosted its stake in Stellus Capital Investment by 3.2% during the second quarter. Condor Capital Management now owns 197,552 shares of the investment management company's stock worth $2,754,000 after buying an additional 6,160 shares during the last quarter. Ethos Financial Group LLC increased its stake in shares of Stellus Capital Investment by 2.4% in the 2nd quarter. Ethos Financial Group LLC now owns 197,095 shares of the investment management company's stock worth $2,748,000 after acquiring an additional 4,633 shares during the last quarter. Muzinich & Co. Inc. raised its holdings in shares of Stellus Capital Investment by 65.3% during the 2nd quarter. Muzinich & Co. Inc. now owns 144,005 shares of the investment management company's stock worth $2,007,000 after acquiring an additional 56,885 shares during the period. Sumitomo Mitsui Trust Group Inc. boosted its position in shares of Stellus Capital Investment by 11.0% during the 2nd quarter. Sumitomo Mitsui Trust Group Inc. now owns 94,048 shares of the investment management company's stock valued at $1,311,000 after acquiring an additional 9,286 shares during the last quarter. Finally, Ameritas Advisory Services LLC acquired a new position in shares of Stellus Capital Investment during the 2nd quarter valued at about $34,000. 13.22% of the stock is owned by hedge funds and other 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.