Should I Buy SCM? SCM 2026 Analysis

Should You Buy Stellus Capital Investment Corp (SCM) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

12.960

1 Day change

1.25%

52 Week Range

15.390

Analysis Updated At

2026/01/26

Stellus Capital Investment Corp (SCM) is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 to invest. The stock shows weak financial performance, a lack of significant trading signals, and a recent dividend cut, which could deter long-term growth-focused investors. While the dividend yield remains attractive, the declining financial metrics and neutral trading sentiment suggest holding off on investment for now.

Technical Analysis

The technical indicators show a neutral to slightly bearish trend. The MACD is negative and expanding downward, the RSI is neutral at 42.461, and moving averages are converging. The stock is trading near its support level (S1: 12.697), with resistance at R1: 13.446. No strong bullish signals are present.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Options data shows a strong bullish sentiment with a very low put-call ratio, but this is not supported by other factors such as financial performance or technical trends.

Technical Summary

Sell

Buy

Positive Catalysts

The company continues to offer a high dividend yield of 10.27%, which may attract income-focused investors. Additionally, the stock has a 70% chance of gaining 8.72% over the next month based on historical candlestick patterns.

Neutral/Negative Catalysts

The company recently announced a 15% dividend cut, which could signal financial strain. Financial performance in Q3 2025 showed significant declines in revenue (-24.30% YoY), net income (-56.72% YoY), and EPS (-61.02% YoY). Trading sentiment from hedge funds and insiders is neutral, and there are no recent purchases by politicians or influential figures.

Financial Performance

In Q3 2025, Stellus Capital's revenue dropped to $23,997,058 (-24.30% YoY), net income fell to $6,692,028 (-56.72% YoY), and EPS declined to $0.23 (-61.02% YoY). Gross margin slightly decreased to 99.28% (-0.24% YoY), indicating a significant deterioration in financial health.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

No recent analyst ratings or price target changes are available for Stellus Capital Investment Corp.

1 Analyst Rating

Wall Street analysts forecast SCM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SCM is 13 USD with a low forecast of 13 USD and a high forecast of 13 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

0 Buy

1 Hold

0 Sell

Hold

Current: 12.800

Low

Averages

High

Current: 12.800

Low

Averages

High

Keefe, Bruyette & Woods

Ryan Lynch

Hold

Maintains

$14 → $13

AI Analysis

2025-04-08

Reason

Keefe, Bruyette & Woods

Ryan Lynch

Price Target

$14 → $13

AI Analysis

2025-04-08

Maintains

Hold

Reason

Keefe Bruyette lowered the firm's price target on Stellus Capital to $13 from $13.50 and keeps a Market Perform rating on the shares.

SCM Should I Buy

SCM Should I Buy

Should You Buy Stellus Capital Investment Corp (SCM) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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