Zacks Investment Research upgraded shares of Stellus Capital Investment (NYSE:SCM) from a hold rating to a strong-buy rating in a research note issued to investors on Saturday morning. They currently have $16.00 target price on the investment management company’s stock.
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. “
Several other research analysts have also commented on SCM. Keefe, Bruyette & Woods reiterated a hold rating and issued a $14.00 price target on shares of Stellus Capital Investment in a research report on Thursday. TheStreet lowered Stellus Capital Investment from a b rating to a c+ rating in a research report on Wednesday, July 11th. Finally, ValuEngine lowered Stellus Capital Investment from a hold rating to a sell rating in a research report on Monday, July 2nd. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating, one has assigned a buy rating and one has given a strong buy rating to the company. The company currently has a consensus rating of Buy and an average price target of $14.83.
Stellus Capital Investment (NYSE:SCM) last released its quarterly earnings results on Wednesday, August 8th. The investment management company reported $0.30 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.31 by ($0.01). The company had revenue of $12.62 million during the quarter, compared to analysts’ expectations of $12.21 million. Stellus Capital Investment had a return on equity of 8.16% and a net margin of 59.39%. analysts predict that Stellus Capital Investment will post 1.29 earnings per share for the current year.
The firm also recently announced a monthly dividend, which will be paid on Friday, September 14th. Shareholders of record on Friday, August 31st will be given a dividend of $0.1133 per share. The ex-dividend date of this dividend is Thursday, August 30th. This represents a $1.36 annualized dividend and a dividend yield of 10.00%. Stellus Capital Investment’s dividend payout ratio (DPR) is presently 112.40%.
In other Stellus Capital Investment news, CEO Robert T. Ladd bought 3,000 shares of the company’s stock in a transaction on Friday, June 1st. The stock was acquired at an average price of $12.62 per share, for a total transaction of $37,860.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders have acquired 28,000 shares of company stock valued at $357,010 in the last 90 days. Company insiders own 5.40% of the company’s stock.
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Stephens Inc. AR purchased a new stake in shares of Stellus Capital Investment in the second quarter valued at approximately $257,000. Gables Capital Management Inc. purchased a new stake in shares of Stellus Capital Investment in the first quarter valued at approximately $1,532,000. Freestone Capital Holdings LLC boosted its holdings in shares of Stellus Capital Investment by 37.2% in the first quarter. Freestone Capital Holdings LLC now owns 318,254 shares of the investment management company’s stock valued at $3,663,000 after purchasing an additional 86,252 shares during the period. LPL Financial LLC purchased a new stake in shares of Stellus Capital Investment in the first quarter valued at approximately $138,000. Finally, Oppenheimer & Co. Inc. boosted its holdings in shares of Stellus Capital Investment by 29.1% in the first quarter. Oppenheimer & Co. Inc. now owns 38,563 shares of the investment management company’s stock valued at $444,000 after purchasing an additional 8,685 shares during the period. Hedge funds and other institutional investors own 24.70% 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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