Stellus Capital Investment (NYSE:SCM) Stock Price Passes Below 200-Day Moving Average - Here's Why

Key Points

• Stellus Capital Investment Corporation's stock price fell below its 200-day moving average during trading, reaching as low as $12.67.
• Analysts have given the stock a moderate buy rating with an average target price of $13.00, following upgrades from some firms.
• In its latest quarterly earnings report, the company achieved an EPS of $0.35, meeting analysts' expectations but falling short on revenue, which was reported at $25.70 million.

Shares of Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) crossed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $13.79 and traded as low as $12.67. Stellus Capital Investment shares last traded at $12.70, with a volume of 218,704 shares changing hands.

Analysts Set New Price Targets

SCM has been the subject of several research analyst reports. Wall Street Zen upgraded Stellus Capital Investment from a "sell" rating to a "hold" rating in a report on Saturday, August 9th. Weiss Ratings restated a "buy (b)" rating on shares of Stellus Capital Investment in a research note on Saturday, September 27th. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $13.00.

Stellus Capital Investment Stock Down 1.2%

The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 1.27. The company has a market cap of $360.85 million, a P/E ratio of 8.76 and a beta of 0.90. The company has a fifty day moving average of $14.16 and a 200 day moving average of $13.79.

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

Institutional Trading of Stellus Capital Investment

Several hedge funds have recently bought and sold shares of the stock. Chilton Capital Management LLC lifted its position in shares of Stellus Capital Investment by 10.6% in the first quarter. Chilton Capital Management LLC now owns 8,409 shares of the investment management company's stock valued at $118,000 after acquiring an additional 809 shares in the last quarter. Geneos Wealth Management Inc. purchased a new position in shares of Stellus Capital Investment in the second quarter valued at about $25,000. CANADA LIFE ASSURANCE Co lifted its position in shares of Stellus Capital Investment by 8.5% in the second quarter. CANADA LIFE ASSURANCE Co now owns 26,769 shares of the investment management company's stock valued at $373,000 after acquiring an additional 2,101 shares in the last quarter. Ameritas Advisory Services LLC purchased a new position in shares of Stellus Capital Investment in the second quarter valued at about $34,000. Finally, Sunbelt Securities Inc. lifted its position in shares of Stellus Capital Investment by 10.1% in the first quarter. Sunbelt Securities Inc. now owns 32,803 shares of the investment management company's stock valued at $459,000 after acquiring an additional 3,022 shares in the last quarter. Institutional investors own 13.22% of the company's stock.

About Stellus Capital Investment

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.

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