Stellus Capital Investment (NYSE:SCM) Cut to Sell at StockNews.com

StockNews.com downgraded shares of Stellus Capital Investment (NYSE:SCM) from a hold rating to a sell rating in a report published on Thursday morning.

Stellus Capital Investment Stock Performance

Shares of SCM opened at $14.26 on Thursday. The firm has a market capitalization of $392.44 million, a P/E ratio of 7.28 and a beta of 1.07. The company has a debt-to-equity ratio of 1.15, a current ratio of 0.29 and a quick ratio of 0.29. Stellus Capital Investment has a one year low of $12.92 and a one year high of $15.56. The business has a fifty day moving average of $14.67 and a 200 day moving average of $14.11.

Stellus Capital Investment (NYSE:SCM) last released its quarterly earnings results on Tuesday, March 4th. The investment management company reported $0.37 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.41 by ($0.04). Stellus Capital Investment had a net margin of 45.39% and a return on equity of 13.49%. The firm had revenue of $25.62 million for the quarter, compared to the consensus estimate of $26.60 million. As a group, sell-side analysts anticipate that Stellus Capital Investment will post 1.74 EPS for the current year.

Stellus Capital Investment Dividend Announcement

The firm also recently disclosed a dividend, which was paid on Friday, February 14th. Stockholders of record on Monday, February 3rd were given a dividend of $0.1333 per share. This represents a dividend yield of 10.88%. The ex-dividend date was Friday, January 31st. Stellus Capital Investment’s payout ratio is 88.89%.

Hedge Funds Weigh In On Stellus Capital Investment

Institutional investors have recently bought and sold shares of the stock. Paloma Partners Management Co purchased a new stake in Stellus Capital Investment in the third quarter worth about $226,000. JPMorgan Chase & Co. grew its stake in shares of Stellus Capital Investment by 70.8% during the 3rd quarter. JPMorgan Chase & Co. now owns 14,949 shares of the investment management company’s stock valued at $205,000 after acquiring an additional 6,197 shares during the period. ORG Partners LLC bought a new position in shares of Stellus Capital Investment during the 4th quarter valued at approximately $29,000. PFG Investments LLC raised its stake in Stellus Capital Investment by 2.2% during the 4th quarter. PFG Investments LLC now owns 64,339 shares of the investment management company’s stock worth $885,000 after acquiring an additional 1,385 shares during the period. Finally, Raymond James Financial Inc. purchased a new position in Stellus Capital Investment during the fourth quarter valued at approximately $3,328,000. 13.22% of the stock is 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.