StockNews.com Downgrades Stellus Capital Investment (NYSE:SCM) to Sell

Stellus Capital Investment (NYSE:SCM) was downgraded by analysts at StockNews.com from a “hold” rating to a “sell” rating in a report issued on Thursday.

Stellus Capital Investment Price Performance

NYSE SCM opened at $14.26 on Thursday. Stellus Capital Investment has a one year low of $12.92 and a one year high of $15.56. The stock has a 50-day moving average of $14.67 and a 200 day moving average of $14.11. The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.29 and a current ratio of 0.29. The company has a market capitalization of $392.44 million, a price-to-earnings ratio of 7.28 and a beta of 1.07.

Stellus Capital Investment (NYSE:SCM) last announced its quarterly earnings results on Tuesday, March 4th. The investment management company reported $0.37 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.41 by ($0.04). Stellus Capital Investment had a net margin of 45.39% and a return on equity of 13.49%. The company had revenue of $25.62 million for the quarter, compared to analysts’ expectations of $26.60 million. On average, sell-side analysts forecast that Stellus Capital Investment will post 1.74 EPS for the current year.

Institutional Trading of Stellus Capital Investment

Several large investors have recently modified their holdings of SCM. Paloma Partners Management Co purchased a new position in Stellus Capital Investment in the third quarter worth about $226,000. JPMorgan Chase & Co. lifted its stake in shares of Stellus Capital Investment by 70.8% in the 3rd quarter. JPMorgan Chase & Co. now owns 14,949 shares of the investment management company’s stock worth $205,000 after purchasing an additional 6,197 shares during the period. ORG Partners LLC purchased a new position in shares of Stellus Capital Investment in the fourth quarter worth approximately $29,000. PFG Investments LLC grew its position in Stellus Capital Investment by 2.2% during the fourth quarter. PFG Investments LLC now owns 64,339 shares of the investment management company’s stock valued at $885,000 after buying an additional 1,385 shares during the period. Finally, Raymond James Financial Inc. purchased a new stake in Stellus Capital Investment during the fourth quarter valued at approximately $3,328,000. Institutional investors own 13.22% of the company’s stock.

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 prefers to invest in US and Canada.