Stellus Capital Investment (NYSE:SCM) Upgraded at Zacks Investment Research

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Zacks Investment Research upgraded shares of Stellus Capital Investment (NYSE:SCM) from a sell rating to a hold rating in a research report report published on Tuesday morning, Zacks.com reports.

According to Zacks, “Stellus Capital Investment Corporation is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private middle-market companies. “

Other research analysts have also recently issued research reports about the stock. Oppenheimer cut shares of Stellus Capital Investment from an outperform rating to a market perform rating in a research note on Monday, August 12th. CIBC restated a market perform rating on shares of Stellus Capital Investment in a research note on Monday, August 12th. Finally, TheStreet upgraded shares of Stellus Capital Investment from a c+ rating to a b rating in a research note on Wednesday, June 5th. Four equities research analysts have rated the stock with a hold rating, The company currently has an average rating of Hold and a consensus price target of $15.00.

SCM stock opened at $13.25 on Tuesday. Stellus Capital Investment has a twelve month low of $11.65 and a twelve month high of $15.30. The company has a market cap of $250.14 million, a PE ratio of 9.33 and a beta of 0.67. The business’s 50-day simple moving average is $13.98 and its 200 day simple moving average is $14.16. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 0.72.

Stellus Capital Investment (NYSE:SCM) last released its earnings results on Friday, August 9th. The investment management company reported $0.29 earnings per share for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.03). The firm had revenue of $14.17 million for the quarter, compared to analyst estimates of $14.16 million. Stellus Capital Investment had a return on equity of 9.79% and a net margin of 47.43%. On average, equities research analysts anticipate that Stellus Capital Investment will post 1.26 EPS for the current year.

The firm also recently declared a dividend, which will be paid on Friday, September 13th. Shareholders of record on Friday, August 30th will be paid a dividend of $0.113 per share. The ex-dividend date of this dividend is Thursday, August 29th. Stellus Capital Investment’s dividend payout ratio is 95.77%.

A number of institutional investors and hedge funds have recently made changes to their positions in SCM. Virtus ETF Advisers LLC bought a new position in shares of Stellus Capital Investment in the second quarter valued at approximately $3,481,000. Raymond James & Associates grew its holdings in shares of Stellus Capital Investment by 88.5% in the 1st quarter. Raymond James & Associates now owns 182,641 shares of the investment management company’s stock valued at $2,584,000 after buying an additional 85,763 shares during the period. Gables Capital Management Inc. grew its holdings in shares of Stellus Capital Investment by 1.6% in the 2nd quarter. Gables Capital Management Inc. now owns 130,098 shares of the investment management company’s stock valued at $1,799,000 after buying an additional 2,033 shares during the period. Acadian Asset Management LLC grew its holdings in shares of Stellus Capital Investment by 205.0% in the 2nd quarter. Acadian Asset Management LLC now owns 95,540 shares of the investment management company’s stock valued at $1,321,000 after buying an additional 64,217 shares during the period. Finally, BlackRock Inc. grew its holdings in shares of Stellus Capital Investment by 26.3% in the 2nd quarter. BlackRock Inc. now owns 89,105 shares of the investment management company’s stock valued at $1,232,000 after buying an additional 18,534 shares during the period. Hedge funds and other institutional investors own 19.13% of the company’s stock.

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 seeks to invest in companies with an EBITDA between $5 million and $50 million.

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