Stellus Capital Investment (NYSE:SCM) Rating Lowered 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 research note issued to investors on Thursday.

Stellus Capital Investment Trading Down 1.7 %

SCM stock opened at $14.26 on Thursday. 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 1-year low of $12.92 and a 1-year high of $15.56. The business has a 50 day simple moving average of $14.67 and a two-hundred day simple moving average of $14.11. The company has a market capitalization of $392.44 million, a price-to-earnings ratio of 7.28 and a beta of 1.07.

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

Stellus Capital Investment Announces Dividend

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

Hedge Funds Weigh In On Stellus Capital Investment

Large investors have recently modified their holdings of the stock. Northern Trust Corp raised its stake in shares of Stellus Capital Investment by 30.1% in the fourth quarter. Northern Trust Corp now owns 22,973 shares of the investment management company’s stock valued at $316,000 after acquiring an additional 5,314 shares during the period. Aquatic Capital Management LLC purchased a new stake in Stellus Capital Investment in the 4th quarter worth about $244,000. Virtus ETF Advisers LLC raised 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 worth $902,000 after purchasing an additional 9,736 shares during the period. Raymond James Financial Inc. bought a new stake in Stellus Capital Investment in the fourth quarter worth about $3,328,000. Finally, Legal & General Group Plc boosted its position in shares of Stellus Capital Investment by 0.9% during the fourth 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 period. 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.