Stellus Capital Investment Corp (NYSE:SCM) was the target of a large decline in short interest in the month of September. As of September 30th, there was short interest totalling 97,400 shares, a decline of 21.6% from the September 15th total of 124,200 shares. Based on an average daily volume of 108,200 shares, the short-interest ratio is currently 0.9 days. Approximately 0.5% of the company’s shares are short sold.
In other Stellus Capital Investment news, CEO Robert T. Ladd bought 20,000 shares of Stellus Capital Investment stock in a transaction dated Tuesday, August 4th. The shares were purchased at an average cost of $7.98 per share, with a total value of $159,600.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Dean D’angelo bought 5,000 shares of Stellus Capital Investment stock in a transaction dated Tuesday, September 1st. The shares were acquired at an average cost of $8.12 per share, for a total transaction of $40,600.00. The disclosure for this purchase can be found here. Insiders acquired a total of 45,000 shares of company stock worth $361,800 over the last ninety days. Insiders own 5.41% of the company’s stock.
Large investors have recently made changes to their positions in the company. Sanders Morris Harris LLC grew its stake in Stellus Capital Investment by 6.5% during the 3rd quarter. Sanders Morris Harris LLC now owns 22,259 shares of the investment management company’s stock worth $194,000 after buying an additional 1,368 shares during the last quarter. Two Sigma Advisers LP acquired a new stake in Stellus Capital Investment during the 2nd quarter worth about $186,000. Tower Research Capital LLC TRC lifted its position in Stellus Capital Investment by 1,727.2% during the 1st quarter. Tower Research Capital LLC TRC now owns 31,281 shares of the investment management company’s stock worth $228,000 after acquiring an additional 29,569 shares during the period. Advisor Group Holdings Inc. acquired a new position in shares of Stellus Capital Investment in the 1st quarter valued at about $242,000. Finally, California Public Employees Retirement System lifted its holdings in shares of Stellus Capital Investment by 31.1% in the 2nd quarter. California Public Employees Retirement System now owns 40,500 shares of the investment management company’s stock valued at $295,000 after buying an additional 9,600 shares during the period. Institutional investors and hedge funds own 15.66% of the company’s stock.
Stellus Capital Investment (NYSE:SCM) last issued its quarterly earnings results on Friday, July 31st. The investment management company reported $0.29 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.24 by $0.05. The firm had revenue of $13.84 million during the quarter, compared to analyst estimates of $14.49 million. Stellus Capital Investment had a return on equity of 9.60% and a net margin of 10.29%. As a group, sell-side analysts predict that Stellus Capital Investment will post 1.1 earnings per share for the current fiscal year.
The company also recently disclosed a None dividend, which will be paid on Tuesday, December 29th. Shareholders of record on Tuesday, December 15th will be issued a dividend of $0.31 per share. The ex-dividend date of this dividend is Monday, December 14th. This represents a yield of 11.8%. Stellus Capital Investment’s payout ratio is currently 81.30%.
SCM has been the topic of several research analyst reports. National Securities raised Stellus Capital Investment to a “buy” rating in a research note on Monday, August 3rd. Raymond James reissued a “buy” rating on shares of Stellus Capital Investment in a research note on Tuesday, September 15th. Finally, Zacks Investment Research raised Stellus Capital Investment from a “sell” rating to a “hold” rating in a research note on Tuesday, July 14th. One analyst has rated the stock with a sell rating, three have issued a hold rating and two have given a buy rating to the company. The stock has an average rating of “Hold” and an average price target of $12.00.
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 seeks to invest in companies with an EBITDA between $5 million and $50 million.
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