Stellus Capital Investment (NYSE:SCM) Downgraded by Zacks Investment Research

Zacks Investment Research downgraded shares of Stellus Capital Investment (NYSE:SCM) from a hold rating to a sell rating in a research report released on Thursday 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. “

Separately, TheStreet downgraded shares of Weis Markets from a b- rating to a c+ rating in a research report on Wednesday, June 5th.

Shares of Stellus Capital Investment stock opened at $14.20 on Thursday. The stock has a 50-day moving average price of $13.93. The firm has a market capitalization of $268.09 million, a P/E ratio of 10.00 and a beta of 0.68. Stellus Capital Investment has a fifty-two week low of $11.65 and a fifty-two week high of $15.30. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.36 and a current ratio of 0.36.

Stellus Capital Investment (NYSE:SCM) last issued its quarterly earnings data on Friday, May 10th. The investment management company reported $0.34 earnings per share for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.01). The firm had revenue of $13.84 million during the quarter, compared to analyst estimates of $14.13 million. Stellus Capital Investment had a return on equity of 9.97% and a net margin of 51.60%. As a group, sell-side analysts expect that Stellus Capital Investment will post 1.33 earnings per share for the current fiscal year.

The business also recently declared a monthly dividend, which will be paid on Thursday, August 15th. Investors of record on Wednesday, July 31st will be given a dividend of $0.113 per share. The ex-dividend date is Tuesday, July 30th. This represents a $1.36 annualized dividend and a dividend yield of 9.55%. Stellus Capital Investment’s dividend payout ratio (DPR) is presently 95.77%.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. TCG Advisors LP acquired a new position in shares of Stellus Capital Investment during the 1st quarter worth about $35,000. Icon Wealth Partners LLC purchased a new stake in Stellus Capital Investment during the 1st quarter valued at about $42,000. Algert Global LLC purchased a new stake in Stellus Capital Investment during the 1st quarter valued at about $308,000. Two Sigma Investments LP grew its stake in Stellus Capital Investment by 27.7% during the 4th quarter. Two Sigma Investments LP now owns 26,334 shares of the investment management company’s stock valued at $341,000 after acquiring an additional 5,708 shares in the last quarter. Finally, Acadian Asset Management LLC purchased a new stake in Stellus Capital Investment during the 1st quarter valued at about $443,000. Hedge funds and other institutional investors own 17.51% 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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