Stellus Capital Investment (NYSE:SCM) CEO Robert Ladd Acquires 1,700 Shares
by Sarita Garza · The Markets DailyStellus Capital Investment Corporation (NYSE:SCM – Get Free Report) CEO Robert Ladd bought 1,700 shares of the firm’s stock in a transaction on Monday, March 16th. The stock was bought at an average price of $8.45 per share, with a total value of $14,365.00. Following the completion of the purchase, the chief executive officer owned 669,635 shares of the company’s stock, valued at $5,658,415.75. This trade represents a 0.25% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which can be accessed through the SEC website.
Stellus Capital Investment Stock Performance
Shares of NYSE:SCM traded up $0.42 during trading on Tuesday, hitting $9.13. 327,640 shares of the company traded hands, compared to its average volume of 259,030. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 1.13. The business’s fifty day moving average is $11.56 and its 200-day moving average is $12.33. The stock has a market capitalization of $264.29 million, a price-to-earnings ratio of 9.71 and a beta of 0.68. Stellus Capital Investment Corporation has a one year low of $8.43 and a one year high of $15.39.
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 (EPS) for the quarter, missing the consensus estimate of $0.31 by ($0.02). Stellus Capital Investment had a return on equity of 10.28% and a net margin of 26.48%.The company had revenue of $23.98 million during the quarter, compared to the consensus estimate of $26.33 million. As a group, equities analysts predict that Stellus Capital Investment Corporation will post 1.74 earnings per share for the current fiscal year.
Stellus Capital Investment Dividend Announcement
The company also recently declared a monthly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st will be issued a dividend of $0.1133 per share. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a c) annualized dividend and a dividend yield of 14.9%. Stellus Capital Investment’s payout ratio is 144.68%.
Wall Street Analysts Forecast Growth
A number of research firms recently weighed in on SCM. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Stellus Capital Investment in a report on Monday, December 29th. Keefe, Bruyette & Woods reduced their target price on shares of Stellus Capital Investment from $13.00 to $9.00 and set a “market perform” rating for the company in a research note on Monday. Three investment analysts have rated the stock with a Hold rating, According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $9.00.
Read Our Latest Analysis on Stellus Capital Investment
Stellus Capital Investment News Roundup
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.
Institutional Trading of Stellus Capital Investment
Hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada boosted its position in Stellus Capital Investment by 15.8% during the 1st quarter. Royal Bank of Canada now owns 27,882 shares of the investment management company’s stock worth $390,000 after acquiring an additional 3,808 shares during the period. Jane Street Group LLC bought a new stake in shares of Stellus Capital Investment during the first quarter valued at about $157,000. Inspire Advisors LLC raised its stake in shares of Stellus Capital Investment by 155.5% during the second quarter. Inspire Advisors LLC now owns 62,530 shares of the investment management company’s stock valued at $872,000 after purchasing an additional 38,059 shares in the last quarter. Legal & General Group Plc lifted its holdings in Stellus Capital Investment by 3.0% in the second quarter. Legal & General Group Plc now owns 184,006 shares of the investment management company’s stock worth $2,565,000 after purchasing an additional 5,417 shares during the period. Finally, Laurel Wealth Advisors LLC acquired a new stake in Stellus Capital Investment in the second quarter worth about $405,000. Institutional investors own 13.22% of the company’s stock.
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.