Insider Trading June 25, 2026 09:34 PM

Stellus Capital Director Arnoult J Tim Accumulates Shares Amid Stock Decline

Director's recent purchases total $96,523 as the stock trades near 52-week lows, while the company navigates Q1 earnings misses and governance updates.

By Nina Shah
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SCM

Arnoult J Tim, a director at Stellus Capital Investment Corp (NASDAQ:SCM), has increased his stake in the company through a series of direct share purchases totaling $96,523. The acquisitions, reported via SEC Form 4 filings, occurred across multiple dates in May and June 2026. This activity comes as SCM's stock trades near its 52-week low, despite the company maintaining a significant dividend yield and undergoing recent governance changes following its acquisition by Ridgepost Capital, LLC.

Stellus Capital Director Arnoult J Tim Accumulates Shares Amid Stock Decline
SCM
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Key Points

  • Arnoult J Tim purchased 10,700 shares of SCM stock between May and June 2026, totaling $96,523, with prices ranging from $8.29 to $9.27 per share.
  • The company reported Q1 2026 earnings with an EPS of $0.26 that met expectations, but revenue of $23.29 million missed the $24.91 million forecast.
  • Stellus Capital entered a new investment advisory agreement with Stellus Capital Management, LLC, with unchanged fees, following its acquisition by Ridgepost Capital, LLC.

Arnoult J Tim, serving as a director at Stellus Capital Investment Corp (NASDAQ:SCM), has executed a series of direct purchases of the company's common stock. According to filings submitted to the Securities and Exchange Commission, these transactions resulted in an aggregate acquisition value of $96,523. The purchases were not executed in a single block but were spread across several dates, reflecting a deliberate accumulation strategy.

Mr. Tim acquired a total of 10,700 shares during this period. The price per share varied across the transactions, ranging from $8.29 to $9.27. A significant portion of this activity occurred in mid-May. On May 13, 2026, he purchased 1,000 shares at a price of $9.27 each. Shortly thereafter, on May 19, 2026, he acquired an additional 9,000 shares at $9.05 per share. Both of these earlier transactions were reported with a delay due to an inadvertent administrative oversight. The most recent transaction in this sequence took place on June 23, 2026, when Mr. Tim bought 700 shares at $8.29 per share.

The timing of these acquisitions is particularly notable when viewed against the current market performance of the stock. SCM is currently trading at $8.01, a level that sits close to its 52-week low of $7.78. This price point reflects a substantial 32% decline in the stock's value over the past six months. Despite this downward trend in equity value, the company continues to offer a dividend yield of 17%. This payout rate is supported by a history of maintaining dividend payments for 15 consecutive years, according to data tracked by InvestingPro. The financial service provider also notes six additional key metrics relevant to SCM investors.

Following the completion of these recent purchases, Mr. Tim's direct holding in Stellus Capital Investment Corp common stock stands at 51,569 shares. This increase in ownership comes as the company reports mixed financial results for the first quarter of 2026. The reported earnings per share (EPS) of $0.26 aligned with market expectations. However, revenue figures fell short of forecasts, coming in at $23.29 million compared to the anticipated $24.91 million.

Concurrently, Stellus Capital has finalized a new investment advisory agreement with Stellus Capital Management, LLC. This development follows the company's acquisition by Ridgepost Capital, LLC. The terms of the new agreement mirror the previous arrangement, with management and incentive fees remaining unchanged. Governance updates also occurred during the company's recent annual meeting. Shareholders approved the election of Bruce R. Bilger to the board of directors for a three-year term. Additionally, shareholders ratified the new advisory agreement, signaling approval of the ongoing strategic adjustments and governance activities within the firm.

Risks

  • The stock has declined 32% over the past six months and is trading near its 52-week low of $7.78, indicating potential volatility in the alternative investment sector.
  • The company's Q1 revenue missed analyst expectations, suggesting possible challenges in asset management or fee generation within the specialty finance sector.

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