Stellus Capital Investment (NYSE:SCM) Stock Passes Above 200 Day Moving Average - Time to 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 passed 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 traded.

Analysts Set New Price Targets

Separately, Wall Street Zen raised Stellus Capital Investment from a "sell" rating to a "hold" rating in a report on Saturday.

Stellus Capital Investment Stock Performance

The firm has a market capitalization of $412.77 million, a P/E ratio of 10.02 and a beta of 0.86. The stock has a 50-day moving average of $14.16 and a 200 day moving average of $13.95. 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 released its quarterly earnings results on Wednesday, August 6th. The investment management company reported $0.35 EPS for the quarter, hitting analysts' consensus estimates of $0.35. The business had revenue of $25.70 million for the quarter, compared to analyst estimates of $26.15 million. Stellus Capital Investment had a return on equity of 11.10% and a net margin of 38.24%. On average, research analysts anticipate that Stellus Capital Investment Corporation will post 1.74 earnings per share for the current year.

Stellus Capital Investment Dividend Announcement

The firm also recently declared a -- dividend, which will be paid on Wednesday, October 15th. Investors of record on Tuesday, September 30th will be given a dividend of $0.1333 per share. The ex-dividend date is Tuesday, September 30th. This represents a yield of 1,110.0%. Stellus Capital Investment's dividend payout ratio is 110.34%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SCM. Legal & General Group Plc boosted its position in Stellus Capital Investment by 0.9% in the 4th quarter. Legal & General Group Plc now owns 173,702 shares of the investment management company's stock valued at $2,393,000 after buying an additional 1,527 shares during the last quarter. Raymond James Financial Inc. bought a new position in Stellus Capital Investment in the 4th quarter valued at $3,328,000. Virtus ETF Advisers LLC boosted its position in Stellus Capital Investment by 17.4% in the 4th quarter. Virtus ETF Advisers LLC now owns 65,584 shares of the investment management company's stock valued at $902,000 after buying an additional 9,736 shares during the last quarter. Aquatic Capital Management LLC bought a new position in shares of Stellus Capital Investment in the 4th quarter worth $244,000. Finally, Northern Trust Corp boosted its position in shares of Stellus Capital Investment by 30.1% in the 4th quarter. Northern Trust Corp now owns 22,973 shares of the investment management company's stock worth $316,000 after purchasing an additional 5,314 shares during the last quarter. 13.22% of the stock is currently 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.