Stellus Capital Investment (NYSE:SCM) Stock Price Passes Below 200-Day Moving Average – Time to Sell?

Stellus Capital Investment Corporation (NYSE:SCM) crossed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $13.35 and traded as low as $12.75. Stellus Capital Investment shares last traded at $12.92, with a volume of 95,574 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on SCM. Zacks Research raised Stellus Capital Investment from a “strong sell” rating to a “hold” rating in a research note on Thursday, November 13th. Weiss Ratings restated a “hold (c)” rating on shares of Stellus Capital Investment in a report on Monday, December 29th. Finally, Wall Street Zen downgraded Stellus Capital Investment from a “hold” rating to a “sell” rating in a report on Sunday, November 9th. Three analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $13.00.

Stellus Capital Investment Trading Down 0.4%

The stock has a market capitalization of $374.03 million, a P/E ratio of 11.85 and a beta of 0.66. The company has a current ratio of 0.10, a quick ratio of 0.10 and a debt-to-equity ratio of 1.24. The business has a 50-day moving average price of $12.30 and a two-hundred day moving average price of $13.35.

Stellus Capital Investment (NYSE:SCM) last issued its quarterly earnings results on Tuesday, December 14th. The investment management company reported $0.31 EPS for the quarter. Stellus Capital Investment had a return on equity of 10.72% and a net margin of 29.77%.The company had revenue of $27.03 million for the quarter. On average, analysts expect that Stellus Capital Investment Corporation will post 1.74 EPS for the current fiscal year.

Institutional Trading of Stellus Capital Investment

A number of institutional investors and hedge funds have recently made changes to their positions in SCM. Brevan Howard Capital Management LP increased its stake in Stellus Capital Investment by 14.7% in the third quarter. Brevan Howard Capital Management LP now owns 12,663 shares of the investment management company’s stock valued at $165,000 after acquiring an additional 1,622 shares during the last quarter. Geneos Wealth Management Inc. acquired a new stake in shares of Stellus Capital Investment in the 2nd quarter valued at $25,000. CANADA LIFE ASSURANCE Co increased its stake in shares of Stellus Capital Investment by 8.5% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 26,769 shares of the investment management company’s stock valued at $373,000 after purchasing an additional 2,101 shares during the last quarter. JPMorgan Chase & Co. bought a new position in shares of Stellus Capital Investment in the 3rd quarter valued at $28,000. Finally, Ameritas Advisory Services LLC acquired a new position in shares of Stellus Capital Investment during the 2nd quarter worth $34,000. Institutional investors own 13.22% of the company’s stock.

About Stellus Capital Investment

Stellus Capital Investment Corporation (NYSE: SCM) is a closed-end, externally managed business development company that provides debt and equity financing to middle market companies in the United States. As an investment vehicle specializing in private credit, Stellus focuses on originating and structuring senior secured loans, unitranche facilities, mezzanine debt, and equity co-investments tailored to the unique needs of growing businesses. Its flexible capital solutions are designed to support acquisitions, recapitalizations, growth initiatives, and balance sheet refinancings.

Operating under an evergreen structure, Stellus Capital Investment partners with a diverse group of portfolio companies across industries such as manufacturing, healthcare, business services, and specialty finance.