Why Did Stellus Capital Plunge 11.74% Amid Earnings Concerns?

On April 10, 2025, Stellus Capital's stock experienced a significant drop of 11.74% in pre-market trading, reflecting a notable decline in investor sentiment.

Keefe Bruyette recently lowered its price target for Stellus Capital from $13.50 to $13, maintaining a Market Perform rating. This adjustment comes amidst broader market concerns and specific challenges faced by the company.

Stellus Capital's stock has recently hit a 52-week low, touching $13.02. This decline is part of a broader trend that has seen the stock's performance falter over the past year, raising questions about the company's future prospects.

Despite the recent downturn, Stellus Capital continues to pay a monthly dividend of $0.1333 per share, with the next payment scheduled for May 15, 2025. This dividend, while providing some income to shareholders, may not be enough to offset the current stock price decline.

Analysts have expressed concerns about Stellus Capital's earnings, citing rising non-accruals as a significant factor in the company's weaker performance. This has led to a downgrade in the company's rating, further impacting investor confidence.