Stellus Capital Investment (NYSE:SCM) Upgraded to "Hold" at Wall Street Zen

Key Points

• Stellus Capital Investment was upgraded by Wall Street Zen from “sell” to “hold,” while the broader analyst consensus remains Hold with an average price target of $10.00.
• Other analysts were mixed: Keefe, Bruyette & Woods and Zacks Research both cut their views and/or price targets, while LADENBURG THALM/SH SH lowered its target but kept a Buy rating.
• The stock closed at $9.11 and has traded between $8.43 and $15.39 over the past year; insiders have also been buying shares, including CEO Robert T. Ladd and CFO W. Todd Huskinson.

Stellus Capital Investment (NYSE:SCM - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "sell" rating to a "hold" rating in a report issued on Saturday.

Several other equities analysts also recently weighed in on the stock. Keefe, Bruyette & Woods reduced their target price on shares of Stellus Capital Investment from $13.00 to $9.00 and set a "market perform" rating for the company in a research note on Monday, March 16th. Zacks Research downgraded shares of Stellus Capital Investment from a "hold" rating to a "strong sell" rating in a research note on Thursday, April 16th. Finally, LADENBURG THALM/SH SH reduced their target price on shares of Stellus Capital Investment from $12.00 to $11.00 and set a "buy" rating for the company in a research note on Wednesday. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Stellus Capital Investment currently has an average rating of "Hold" and an average price target of $10.00.

Stellus Capital Investment Price Performance

SCM opened at $9.11 on Friday. The company has a market capitalization of $263.73 million, a price-to-earnings ratio of 11.11 and a beta of 0.66. The company has a quick ratio of 0.14, a current ratio of 0.04 and a debt-to-equity ratio of 1.05. The firm has a 50-day moving average price of $9.44 and a 200-day moving average price of $11.20. Stellus Capital Investment has a twelve month low of $8.43 and a twelve month high of $15.39.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last posted its earnings results on Monday, May 11th. The investment management company reported $0.27 earnings per share for the quarter, hitting the consensus estimate of $0.27. The firm had revenue of $23,292.93 billion during the quarter, compared to the consensus estimate of $24.81 million. Stellus Capital Investment had a net margin of 23.59% and a return on equity of 9.69%. Equities analysts expect that Stellus Capital Investment will post 1.06 EPS for the current year.

Insider Activity

In other news, CEO Robert T. Ladd acquired 35,000 shares of the business's stock in a transaction dated Friday, March 13th. The stock was bought at an average cost of $8.70 per share, for a total transaction of $304,500.00. Following the completion of the transaction, the chief executive officer owned 667,935 shares of the company's stock, valued at $5,811,034.50. The trade was a 5.53% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CFO W. Todd Huskinson acquired 5,700 shares of the business's stock in a transaction dated Friday, March 13th. The stock was purchased at an average price of $8.79 per share, with a total value of $50,103.00. Following the completion of the transaction, the chief financial officer directly owned 54,297 shares of the company's stock, valued at $477,270.63. This trade represents a 11.73% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders bought 87,890 shares of company stock worth $766,551. 3.99% of the stock is owned by company insiders.

Institutional Investors Weigh In On Stellus Capital Investment

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Sumitomo Mitsui Trust Group Inc. raised its stake in shares of Stellus Capital Investment by 65.9% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 156,050 shares of the investment management company's stock worth $2,038,000 after acquiring an additional 62,002 shares in the last quarter. Sunbelt Securities Inc. raised its stake in shares of Stellus Capital Investment by 390.7% during the third quarter. Sunbelt Securities Inc. now owns 146,133 shares of the investment management company's stock worth $1,909,000 after acquiring an additional 116,352 shares in the last quarter. Inspire Advisors LLC raised its stake in shares of Stellus Capital Investment by 69.9% during the third quarter. Inspire Advisors LLC now owns 106,262 shares of the investment management company's stock worth $1,388,000 after acquiring an additional 43,732 shares in the last quarter. PFG Investments LLC raised its stake in shares of Stellus Capital Investment by 7.1% during the third quarter. PFG Investments LLC now owns 69,241 shares of the investment management company's stock worth $904,000 after acquiring an additional 4,586 shares in the last quarter. Finally, Jane Street Group LLC purchased a new position in shares of Stellus Capital Investment during the first quarter worth approximately $157,000. 13.22% of the stock is owned by hedge funds and other institutional investors.

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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