Stellus Capital Investment

SCM · NYSE

$6.83−$0.14 (−2.01%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $6.97

SCM analyst rating

HoldConsensus of 3 analysts over the last 12 months. 33% rate it a buy.

Strong buy0
Buy1
Hold2
Underperform0
Sell0

12-month price target · 5 analysts

Average $10.33 (+51.2% upside)

Low: $8.08
Now: $6.83
High: $11.55

Upgrades and downgrades

The latest rating actions, newest first

SCM analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Ladenburg Thalmann	Aug 12, 2026	Maintains	Buy	$11.00 → $10.50	29%
Keefe, Bruyette & Woods	Jul 20, 2026	Maintains	Market Perform	$9.00 → $8.00	36%
Ladenburg Thalmann	May 13, 2026	Maintains	Buy	$12.00 → $11.00	29%
Keefe, Bruyette & Woods	Mar 16, 2026	Maintains	Market Perform	$13.00 → $9.00	45%

The case for and against

Updated Sep 4, 2024

Bull case

Stellus Capital Investment Corp has demonstrated a strong financial performance with a weighted average annualized yield on its debt investments rising to 11.9%, indicating an improvement in profitability. The company reported 4Q23 revenues of $28 million, surpassing expectations by approximately $1 million, and showcased a year-over-year growth of 20%, alongside an increase in net investment income per share of 14%. Despite a decline in net asset value year-over-year, the expectation of lower short-term interest rates and projected 11% return on equity further underpin a positive outlook for the company’s financial health.

Bear case

Stellus Capital Investment Corp faces challenges reflected in its declining GAAP net debt/equity ratio, which, despite decreasing from 178% to 174%, remains substantially higher than the sector average of approximately 115%. The projected decline in dividend coverage to 108% for 2024, driven by an increase in share count and reduced net investment income per share estimates, raises concerns about the firm's ability to sustain its dividend distributions amid competitive loan environments and potential economic downturns. Furthermore, the company's vulnerability to capital market accessibility and broader economic pressures could further strain its financial performance, potentially leading to negative outcomes for both earnings and stock price.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.