Stellus Capital Investment (NYSE:SCM) CFO Purchases $50,103.00 in Stock
by Sarita Garza · The Markets DailyStellus Capital Investment Corporation (NYSE:SCM – Get Free Report) CFO W. Todd Huskinson purchased 5,700 shares of Stellus Capital Investment stock in a transaction on Friday, March 13th. The shares were acquired at an average cost of $8.79 per share, with a total value of $50,103.00. Following the completion of the transaction, the chief financial officer directly owned 54,297 shares in the company, valued at $477,270.63. The trade was a 11.73% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.
Stellus Capital Investment Stock Performance
Shares of SCM stock traded up $0.42 during trading hours on Tuesday, hitting $9.13. The company’s stock had a trading volume of 327,640 shares, compared to its average volume of 259,030. The stock has a market cap of $264.29 million, a PE ratio of 9.71 and a beta of 0.68. Stellus Capital Investment Corporation has a 12-month low of $8.43 and a 12-month high of $15.39. The company has a 50 day moving average of $11.56 and a 200 day moving average of $12.33. The company has a current ratio of 0.14, a quick ratio of 0.14 and a debt-to-equity ratio of 1.13.
Stellus Capital Investment (NYSE:SCM – Get Free Report) last posted its earnings results on Wednesday, March 11th. The investment management company reported $0.29 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.31 by ($0.02). The business 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%. On average, sell-side analysts forecast that Stellus Capital Investment Corporation will post 1.74 EPS for the current fiscal year.
Stellus Capital Investment Dividend Announcement
The business also recently announced a monthly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be issued a dividend of $0.1133 per share. This represents a c) annualized dividend and a yield of 14.9%. The ex-dividend date of this dividend is Tuesday, March 31st. Stellus Capital Investment’s dividend payout ratio (DPR) is 144.68%.
Analysts Set New Price Targets
SCM has been the topic of a number of analyst reports. Keefe, Bruyette & Woods dropped their price objective on shares of Stellus Capital Investment from $13.00 to $9.00 and set a “market perform” rating on the stock in a research note on Monday. Weiss Ratings reissued a “hold (c)” rating on shares of Stellus Capital Investment in a report on Monday, December 29th. Three investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $9.00.
Institutional Inflows and Outflows
Large investors have recently made changes to their positions in the business. Inspire Advisors LLC grew its stake in Stellus Capital Investment by 1.4% in the 4th quarter. Inspire Advisors LLC now owns 107,787 shares of the investment management company’s stock valued at $1,367,000 after acquiring an additional 1,525 shares during the period. Brevan Howard Capital Management LP raised its position in Stellus Capital Investment by 14.7% during the third quarter. Brevan Howard Capital Management LP now owns 12,663 shares of the investment management company’s stock worth $165,000 after acquiring an additional 1,622 shares during the period. Virtus Investment Advisers LLC lifted its holdings in Stellus Capital Investment by 3.0% during the fourth quarter. Virtus Investment Advisers LLC now owns 60,048 shares of the investment management company’s stock valued at $761,000 after purchasing an additional 1,754 shares in the last quarter. Geneos Wealth Management Inc. purchased a new position in Stellus Capital Investment during the second quarter valued at $25,000. Finally, Laurel Wealth Advisors LLC acquired a new stake in shares of Stellus Capital Investment in the fourth quarter valued at about $26,000. 13.22% of the stock is owned by institutional investors and hedge funds.
More Stellus Capital Investment News
Here are the key news stories impacting Stellus Capital Investment this week:
- Positive Sentiment: Significant insider purchases: CEO Robert T. Ladd bought 35,000 shares on March 13 (avg $8.70) and an additional 1,700 shares on March 16 (avg $8.45); CFO W. Todd Huskinson bought 5,700 shares (avg $8.79); Director Bruce R. Bilger bought 45,490 shares (avg $8.74). These transactions materially increase insider ownership and suggest management and the board view the stock as undervalued. SEC filings: Read More., Read More., Read More..
- Neutral Sentiment: Press coverage highlights SCM’s high monthly dividend (double‑digit yield) as attractive to income investors but warns about payout sustainability and recent price weakness — useful context for dividend‑sensitive buyers but mixed for valuation. Read More.
- Neutral Sentiment: Sector comparison piece flags SCM among BDCs with very high yields (SCM ~16.7%) and cautions that high yields can be either opportunity or warning depending on asset quality and earnings stability — reinforces due diligence focus on portfolio credit metrics and dividend coverage. Read More.
- Negative Sentiment: Analyst action: Keefe, Bruyette & Woods cut its price target from $13.00 to $9.00 and set a “market perform” rating, signaling limited near‑term upside from their view and weighing on sentiment. Read More.
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.