Stellus Capital Investment Corporation Announces Monthly Dividend of $0.11 (NYSE:SCM)
by Teresa Graham · The Cerbat GemStellus Capital Investment Corporation (NYSE:SCM – Get Free Report) announced a monthly dividend on Tuesday, April 14th. Stockholders of record on Friday, May 29th will be given a dividend of 0.1133 per share by the investment management company on Monday, June 15th. This represents a c) dividend on an annualized basis and a dividend yield of 13.7%. The ex-dividend date is Friday, May 29th.
Stellus Capital Investment has raised its dividend by an average of 0.1%annually over the last three years. Stellus Capital Investment has a payout ratio of 107.9% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Stellus Capital Investment to earn $1.45 per share next year, which means the company should continue to be able to cover its $1.36 annual dividend with an expected future payout ratio of 93.8%.
Stellus Capital Investment Price Performance
Shares of Stellus Capital Investment stock traded up $0.26 during trading hours on Wednesday, reaching $9.94. 163,938 shares of the company’s stock were exchanged, compared to its average volume of 239,523. Stellus Capital Investment has a 1 year low of $8.43 and a 1 year high of $15.39. The company has a market capitalization of $287.62 million, a P/E ratio of 10.57 and a beta of 0.67. The business has a fifty day moving average of $10.01 and a two-hundred day moving average of $11.60. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 1.13.
Stellus Capital Investment (NYSE:SCM – Get Free Report) last announced its quarterly earnings results on Wednesday, March 11th. The investment management company reported $0.29 earnings per share for the quarter, missing the consensus estimate of $0.31 by ($0.02). The firm had revenue of $23.98 million for the quarter, compared to analyst estimates of $26.33 million. Stellus Capital Investment had a net margin of 26.48% and a return on equity of 10.28%. As a group, research analysts predict that Stellus Capital Investment will post 1.74 earnings per share for the current fiscal year.
Insider Buying and Selling
In other news, Director Bruce R. Bilger bought 45,490 shares of the business’s stock in a transaction that occurred on Friday, March 13th. The shares were purchased at an average cost of $8.74 per share, for a total transaction of $397,582.60. Following the completion of the purchase, the director owned 228,055 shares of the company’s stock, valued at approximately $1,993,200.70. This represents a 24.92% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO W. Todd Huskinson bought 5,700 shares of the business’s stock in a transaction that occurred on Friday, March 13th. The shares were purchased at an average price of $8.79 per share, for a total transaction of $50,103.00. Following the completion of the purchase, the chief financial officer directly owned 54,297 shares of the company’s stock, valued at approximately $477,270.63. This trade represents a 11.73% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders have bought 87,890 shares of company stock worth $766,551. Company insiders own 3.99% of the company’s stock.
Institutional Investors Weigh In On Stellus Capital Investment
Several hedge funds have recently modified their holdings of the stock. Geneos Wealth Management Inc. purchased a new stake in Stellus Capital Investment during the 2nd quarter worth about $25,000. Laurel Wealth Advisors LLC acquired a new stake in Stellus Capital Investment in the 4th quarter worth about $26,000. JPMorgan Chase & Co. acquired a new position in shares of Stellus Capital Investment in the 3rd quarter valued at about $28,000. BNP Paribas Financial Markets acquired a new position in shares of Stellus Capital Investment in the 2nd quarter valued at about $60,000. Finally, Kestra Advisory Services LLC acquired a new position in shares of Stellus Capital Investment in the 4th quarter valued at about $62,000. 13.22% of the stock is owned by institutional investors and hedge funds.
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.