Stellus Capital Investment (NYSE:SCM) Shares Cross Below Two Hundred Day Moving Average – Here’s Why

Stellus Capital Investment Corporation (NYSE:SCM)’s share price crossed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $12.07 and traded as low as $9.09. Stellus Capital Investment shares last traded at $9.12, with a volume of 133,082 shares trading hands.

Wall Street Analyst Weigh In

A number of analysts recently commented on SCM shares. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Stellus Capital Investment in a research note on Monday, December 29th. Keefe, Bruyette & Woods decreased their price objective on shares of Stellus Capital Investment from $13.00 to $9.00 and set a “market perform” rating for the company in a report on Monday, March 16th. Three analysts have rated the stock with a Hold rating, According to MarketBeat.com, Stellus Capital Investment currently has a consensus rating of “Hold” and an average price target of $9.00.

Stellus Capital Investment Stock Performance

The company has a 50-day simple moving average of $10.95 and a two-hundred day simple moving average of $12.07. The company has a debt-to-equity ratio of 1.13, a quick ratio of 0.14 and a current ratio of 0.14. The firm has a market capitalization of $264.02 million, a P/E ratio of 9.70 and a beta of 0.68.

Stellus Capital Investment (NYSE:SCM) last announced its earnings results on Wednesday, March 11th. The investment management company reported $0.29 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.31 by ($0.02). The firm had revenue of $23.98 million during the quarter, compared to the consensus estimate of $26.33 million. Stellus Capital Investment had a return on equity of 10.28% and a net margin of 26.48%. As a group, equities analysts forecast that Stellus Capital Investment Corporation will post 1.74 EPS for the current year.

Stellus Capital Investment Dividend Announcement

The company also recently disclosed a monthly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be issued a $0.1133 dividend. The ex-dividend date is Tuesday, March 31st. This represents a c) dividend on an annualized basis and a yield of 14.9%. Stellus Capital Investment’s dividend payout ratio is 144.68%.

Insider Buying and Selling at Stellus Capital Investment

In other news, CEO Robert T. Ladd acquired 35,000 shares of the stock in a transaction on Friday, March 13th. The stock was acquired at an average price of $8.70 per share, with a total value of $304,500.00. Following the completion of the transaction, the chief executive officer owned 667,935 shares of the company’s stock, valued at $5,811,034.50. This represents a 5.53% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CFO W. Todd Huskinson bought 5,700 shares of the company’s stock in a transaction dated Friday, March 13th. The shares were acquired at an average price of $8.79 per share, for a total transaction of $50,103.00. Following the acquisition, the chief financial officer owned 54,297 shares in the company, valued at approximately $477,270.63. This represents a 11.73% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders bought 87,890 shares of company stock valued at $766,551. 3.99% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Stellus Capital Investment

Several hedge funds have recently bought and sold shares of the business. Sumitomo Mitsui Trust Group Inc. increased its stake in shares of Stellus Capital Investment by 65.9% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 156,050 shares of the investment management company’s stock valued at $2,038,000 after purchasing an additional 62,002 shares in the last quarter. Sunbelt Securities Inc. lifted its holdings in shares of Stellus Capital Investment by 390.7% during the third quarter. Sunbelt Securities Inc. now owns 146,133 shares of the investment management company’s stock valued at $1,909,000 after purchasing an additional 116,352 shares during the last quarter. Inspire Advisors LLC boosted its position in shares of Stellus Capital Investment by 69.9% in the 3rd quarter. Inspire Advisors LLC now owns 106,262 shares of the investment management company’s stock worth $1,388,000 after purchasing an additional 43,732 shares in the last quarter. Corient Private Wealth LLC grew its stake in shares of Stellus Capital Investment by 19.4% in the 2nd quarter. Corient Private Wealth LLC now owns 253,763 shares of the investment management company’s stock worth $3,537,000 after buying an additional 41,305 shares during the last quarter. Finally, Muzinich & Co. Inc. grew its stake in shares of Stellus Capital Investment by 43.7% in the 3rd quarter. Muzinich & Co. Inc. now owns 206,893 shares of the investment management company’s stock worth $2,702,000 after buying an additional 62,888 shares during the last quarter. Institutional investors own 13.22% of the company’s stock.

Stellus Capital Investment Company Profile

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.