Stellus Capital Announces $100M Equity Distribution Agreement

An update from Stellus Capital ( (SCM) ) is now available.

On September 9, 2025, Stellus Capital Investment Corporation announced an equity distribution agreement with Keefe, Bruyette & Woods, Inc. and Raymond James & Associates, Inc. to potentially issue and sell up to $100 million of its common stock. The proceeds from this offering are intended to repay outstanding debts and invest in portfolio companies, aligning with Stellus Capital’s investment strategies. This move could impact the company’s financial structure and market positioning by enhancing its investment capabilities and reducing debt.

The most recent analyst rating on (SCM) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Stellus Capital stock, see the SCM Stock Forecast page.

Spark’s Take on SCM Stock

According to Spark, TipRanks’ AI Analyst, SCM is a Neutral.

Stellus Capital’s stock score is driven by moderate financial performance with growth potential but significant profitability and cash flow challenges. The valuation appears attractive with a low P/E ratio and high dividend yield. Technical indicators suggest a bearish trend, while the earnings call reflects a balanced outlook with both growth achievements and financial risks. Investors should consider the high dividend yield against the backdrop of financial uncertainties.

To see Spark’s full report on SCM stock, click here.

More about Stellus Capital

Stellus Capital Investment Corporation operates in the financial sector, primarily focusing on investment management. The company provides capital to middle-market companies, aiming to generate income and capital appreciation through debt and equity investments.

Average Trading Volume: 146,655

Technical Sentiment Signal: Buy

Current Market Cap: $426.8M

For a thorough assessment of SCM stock, go to TipRanks’ Stock Analysis page.