Stellus Capital Investment (NYSE:SCM) CEO Robert Ladd Acquires 35,000 Shares of Stock

Stellus Capital Investment Corporation (NYSE:SCM) CEO Robert Ladd acquired 35,000 shares of the company’s stock in a transaction that occurred on Friday, March 13th. The stock was purchased at an average cost of $8.70 per share, for a total transaction of $304,500.00. Following the acquisition, the chief executive officer owned 667,935 shares in the company, valued at approximately $5,811,034.50. This trade represents a 5.53% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this link.

Stellus Capital Investment Trading Up 4.8%

Shares of NYSE:SCM opened at $9.13 on Wednesday. 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 company’s 50-day moving average price is $11.48 and its 200 day moving average price is $12.29. The company has a market cap of $264.31 million, a PE ratio of 9.71 and a beta of 0.68. Stellus Capital Investment Corporation has a fifty-two week low of $8.43 and a fifty-two week high of $15.39.

Stellus Capital Investment (NYSE:SCM) last issued its quarterly earnings data 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). Stellus Capital Investment had a return on equity of 10.28% and a net margin of 26.48%.The business had revenue of $23.98 million during the quarter, compared to the consensus estimate of $26.33 million. Sell-side analysts anticipate that Stellus Capital Investment Corporation will post 1.74 earnings per share for the current year.

Stellus Capital Investment Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st will be paid a $0.1133 dividend. 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 dividend payout ratio is presently 144.68%.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the stock. Keefe, Bruyette & Woods cut 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 reiterated a “hold (c)” rating on shares of Stellus Capital Investment in a research report on Monday, December 29th. Three research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $9.00.

Institutional Investors Weigh In On Stellus Capital Investment

A number of institutional investors have recently added to or reduced their stakes in the company. Sumitomo Mitsui Trust Group Inc. increased its position in shares of Stellus Capital Investment by 65.9% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 156,050 shares of the investment management company’s stock valued at $2,038,000 after purchasing an additional 62,002 shares during the period. Inspire Advisors LLC lifted its holdings in shares of Stellus Capital Investment by 155.5% in the second quarter. Inspire Advisors LLC now owns 62,530 shares of the investment management company’s stock valued at $872,000 after buying an additional 38,059 shares during the period. Corient Private Wealth LLC lifted its holdings in shares of Stellus Capital Investment by 19.4% in the second quarter. Corient Private Wealth LLC now owns 253,763 shares of the investment management company’s stock valued at $3,537,000 after buying an additional 41,305 shares during the period. Muzinich & Co. Inc. boosted its stake in Stellus Capital Investment by 43.7% during the third quarter. Muzinich & Co. Inc. now owns 206,893 shares of the investment management company’s stock valued at $2,702,000 after buying an additional 62,888 shares in the last quarter. Finally, Laurel Wealth Advisors LLC bought a new position in Stellus Capital Investment during the second quarter valued at about $405,000. 13.22% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Stellus Capital Investment

Here are the key news stories impacting Stellus Capital Investment this week:

• Positive Sentiment: Senior insiders materially increased positions: CEO Robert Ladd bought ~36,700 shares across two trades (Mar.13 at ~$8.70 and Mar.16 at ~$8.45), Director Bruce Bilger purchased 45,490 shares (Mar.13 at $8.74), and CFO W. Todd Huskinson added 5,700 shares (Mar.13 at $8.79). These purchases signal management confidence in the stock near current levels. CEO SEC filing CFO SEC filing Director SEC filing
• Neutral Sentiment: Coverage pieces highlight SCM’s very high monthly dividend (yield cited ~16–17%) but caution on sustainability — useful context for income investors evaluating risk vs. yield. SCM Offers One of the Highest Yields Around But Retirees Should Pause Before Buying
• Neutral Sentiment: Industry roundup flagged SCM among BDCs showing 14–27% yields but noted only a few can truly sustain such payouts — adds scrutiny to credit quality, portfolio performance and distributable earnings. BDC yields article
• Negative Sentiment: Keefe, Bruyette & Woods cut its price target on SCM from $13 to $9 and moved to a “market perform” rating, signaling lower analyst conviction and reducing upside expectations. Benzinga note on KBW cut

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.