Zacks Investment Research Downgrades Stellus Capital Investment (NYSE:SCM) to Sell

Stellus Capital Investment (NYSE:SCM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Thursday, 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. “

SCM has been the topic of several other research reports. CIBC reiterated a “market perform” rating on shares of Stellus Capital Investment in a research note on Monday, August 12th. Oppenheimer downgraded Stellus Capital Investment from an “outperform” rating to a “market perform” rating in a research note on Monday, August 12th. One analyst has rated the stock with a sell rating and three have assigned a hold rating to the stock. The company has an average rating of “Hold” and an average price target of $15.00.

Stellus Capital Investment stock opened at $13.26 on Thursday. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.28 and a current ratio of 0.28. The business’s 50-day simple moving average is $13.40 and its two-hundred day simple moving average is $13.90. The company has a market cap of $246.91 million, a PE ratio of 8.88 and a beta of 0.69. Stellus Capital Investment has a fifty-two week low of $11.65 and a fifty-two week high of $15.30.

Stellus Capital Investment (NYSE:SCM) last posted its quarterly earnings results on Friday, August 9th. The investment management company reported $0.29 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.32 by ($0.03). The firm had revenue of $14.17 million for the quarter, compared to analysts’ expectations of $14.16 million. Stellus Capital Investment had a net margin of 47.43% and a return on equity of 9.79%. As a group, analysts predict that Stellus Capital Investment will post 1.26 EPS for the current fiscal year.

Institutional investors and hedge funds have recently modified their holdings of the company. Gables Capital Management Inc. boosted its stake in shares of Stellus Capital Investment by 1.6% in the second quarter. Gables Capital Management Inc. now owns 130,098 shares of the investment management company’s stock worth $1,799,000 after buying an additional 2,033 shares during the last quarter. Virtus ETF Advisers LLC purchased a new stake in shares of Stellus Capital Investment in the second quarter worth about $3,481,000. Eagle Global Advisors LLC purchased a new stake in shares of Stellus Capital Investment in the second quarter worth about $177,000. NEXT Financial Group Inc purchased a new stake in shares of Stellus Capital Investment in the second quarter worth about $41,000. Finally, Acadian Asset Management LLC boosted its stake in shares of Stellus Capital Investment by 205.0% in the second quarter. Acadian Asset Management LLC now owns 95,540 shares of the investment management company’s stock worth $1,321,000 after buying an additional 64,217 shares during the last quarter. Hedge funds and other institutional investors own 17.94% 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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