Stellus Capital Investment Corp. (SCM)

Stellus Capital reported Q3 2025 EPS of $0.34, surpassing estimates, but the stock closed down 0.04% at $12.08. Concerns have arisen regarding the sustainability of SCM's dividend payouts, as distributions have at times exceeded earnings. Credit issues have been attributed to company-specific factors, with 6.7% of portfolio companies on non-accrual status as of Q3 2025. Stellus Capital priced a public offering of $50.0 million in 7.25% notes due 2030 in September 2025 and is redeeming the remaining $50 million of 4.875% Notes due 2026 by December 31, 2025. As of January 12, 2026, SCM was trading at $12.98, with a 52-week range of $11.19 to $15.56, experiencing a -7.44% change over the past year.

Demand seasonality for Stellus Capital Investment Corp. is observed more in its stock performance than in direct product or service demand. Seasonal chart analysis suggests a potential "Buy Date" of June 22 and a "Sell Date" of September 27, which has historically resulted in outperformance compared to the S&P 500 Total Return Index. The company's business is generally influenced by broader economic conditions, interest rate environments, and merger and acquisition activity.

Stellus Capital Investment Corp. (SCM) is a business development company that provides debt and equity financing to private middle-market companies, aiming to maximize total returns for stockholders through current income and capital appreciation. The company invests across various sectors, including business services, healthcare, high-tech, energy, industrial, government services, and software, typically targeting companies with an EBITDA between $5 million and $50 million, with transaction sizes ranging from $10 million to $60 million.

Stellus Capital Investment Corp. primarily focuses its investments in the United States and Canada, with business activities and revenue generation centered in the United States. The company's corporate headquarters are located in Houston, Texas.

Stellus Capital Investment Corp.'s brand reputation is mixed, with a consensus "Hold" rating from analysts. Concerns exist regarding dividend sustainability and portfolio quality, indicated by rising non-accruals. Despite these concerns, the stock has seen some positive momentum due to market optimism and investor interest in its high dividend yield. Its focus on floating-rate loans has been seen as a strength in a high-interest environment.

Stellus Capital Investment Corp. is owned by a mix of institutional shareholders, company insiders, and retail investors. Institutional shareholders hold 12.16% of the stock, with major holders including Two Sigma Advisers, Lp and CI Private Wealth, LLC. Company insiders own 5.80%, with Robert T. Ladd, the Chairman, President, and CEO, being the largest individual shareholder. Retail investors hold the largest portion, at 82.05%.