Stellus Capital Investment (NYSE:SCM) Downgraded to Sell Rating by StockNews.com

StockNews.com cut shares of Stellus Capital Investment (NYSE:SCM) from a hold rating to a sell rating in a research note issued to investors on Friday.

Stellus Capital Investment Stock Performance

Shares of SCM opened at $14.06 on Friday. The company has a market capitalization of $380.41 million, a PE ratio of 7.17 and a beta of 1.07. The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.29 and a current ratio of 0.29. The company’s 50 day moving average price is $14.57 and its 200 day moving average price is $14.06. Stellus Capital Investment has a 52 week low of $12.85 and a 52 week high of $15.56.

Stellus Capital Investment (NYSE:SCM) last posted its quarterly earnings results on Tuesday, March 4th. The investment management company reported $0.37 EPS for the quarter, missing the consensus estimate 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 company had revenue of $25.62 million for the quarter, compared to analysts’ expectations of $26.60 million. Research analysts expect that Stellus Capital Investment will post 1.74 EPS for the current fiscal year.

Stellus Capital Investment Dividend Announcement

The company also recently declared a dividend, which was paid on Friday, February 14th. Stockholders of record on Monday, February 3rd were issued a dividend of $0.1333 per share. The ex-dividend date of this dividend was Friday, January 31st. This represents a dividend yield of 10.88%. Stellus Capital Investment’s dividend payout ratio is 81.63%.

Hedge Funds Weigh In On Stellus Capital Investment

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Northern Trust Corp increased its stake in shares of Stellus Capital Investment by 30.1% during the 4th quarter. Northern Trust Corp now owns 22,973 shares of the investment management company’s stock worth $316,000 after purchasing an additional 5,314 shares during the last quarter. Aquatic Capital Management LLC bought a new stake in Stellus Capital Investment in the fourth quarter worth $244,000. Virtus ETF Advisers LLC boosted its holdings in Stellus Capital Investment by 17.4% in the fourth 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 in the last quarter. Raymond James Financial Inc. acquired a new position in Stellus Capital Investment during the fourth quarter worth $3,328,000. Finally, Legal & General Group Plc raised its holdings in 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 in the last quarter. 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.