Capital Southwest Corporation (NASDAQ:CSWC) Receives Average Rating of “Moderate Buy” from Analysts

Shares of Capital Southwest Corporation (NASDAQ:CSWC) have been given a consensus rating of “Moderate Buy” by the ten research firms that are currently covering the company, Marketbeat reports. One analyst has rated the stock with a sell recommendation, three have issued a hold recommendation and six have assigned a buy recommendation to the company. The average 12 month target price among analysts that have updated their coverage on the stock in the last year is $23.6429.

Several equities analysts have recently issued reports on the stock. UBS Group lowered their price objective on shares of Capital Southwest from $23.00 to $21.50 and set a “neutral” rating on the stock in a research note on Tuesday, October 14th. Zacks Research cut shares of Capital Southwest from a “hold” rating to a “strong sell” rating in a report on Monday, October 13th. Capital One Financial set a $22.00 price target on shares of Capital Southwest in a research report on Tuesday, November 4th. Raymond James Financial downgraded Capital Southwest from an “outperform” rating to a “market perform” rating in a research report on Tuesday, October 7th. Finally, Noble Financial upgraded Capital Southwest to a “buy” rating in a report on Wednesday, November 5th.

Capital Southwest Stock Up 0.4%

Shares of CSWC stock opened at $21.58 on Tuesday. Capital Southwest has a 1 year low of $17.46 and a 1 year high of $23.86. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.16 and a current ratio of 0.16. The business’s fifty day moving average is $21.03 and its 200-day moving average is $21.86. The stock has a market cap of $1.24 billion, a PE ratio of 13.40 and a beta of 0.76.

Capital Southwest (NASDAQ:CSWC) last announced its earnings results on Monday, November 3rd. The asset manager reported $0.57 earnings per share for the quarter, missing the consensus estimate of $0.58 by ($0.01). The firm had revenue of $56.95 million for the quarter, compared to the consensus estimate of $55.37 million. Capital Southwest had a net margin of 39.79% and a return on equity of 13.64%. During the same period in the prior year, the business earned $0.66 EPS. Equities analysts expect that Capital Southwest will post 2.54 earnings per share for the current fiscal year.

Capital Southwest Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be paid a $0.1934 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a c) dividend on an annualized basis and a yield of 10.8%. Capital Southwest’s dividend payout ratio (DPR) is currently 144.10%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in CSWC. Kingstone Capital Partners Texas LLC acquired a new stake in shares of Capital Southwest during the second quarter valued at approximately $311,170,000. Van ECK Associates Corp grew its position in Capital Southwest by 8.2% during the 3rd quarter. Van ECK Associates Corp now owns 1,457,146 shares of the asset manager’s stock worth $31,853,000 after purchasing an additional 109,846 shares in the last quarter. Sound Income Strategies LLC raised its stake in Capital Southwest by 7.8% during the 3rd quarter. Sound Income Strategies LLC now owns 756,786 shares of the asset manager’s stock valued at $15,068,000 after purchasing an additional 54,585 shares during the period. Punch & Associates Investment Management Inc. lifted its holdings in shares of Capital Southwest by 2.1% in the first quarter. Punch & Associates Investment Management Inc. now owns 686,513 shares of the asset manager’s stock valued at $15,323,000 after purchasing an additional 14,146 shares in the last quarter. Finally, Tectonic Advisors LLC boosted its position in shares of Capital Southwest by 18.4% in the second quarter. Tectonic Advisors LLC now owns 521,686 shares of the asset manager’s stock worth $11,498,000 after buying an additional 81,213 shares during the period. 23.42% of the stock is currently owned by institutional investors and hedge funds.

Capital Southwest Company Profile

Capital Southwest (NASDAQ: CSWC) is a publicly traded investment firm structured as a business development company (BDC) that provides customized financing solutions to middle-market companies across the United States. The firm offers a spectrum of debt and equity capital, including senior secured loans, mezzanine debt, and both preferred and common equity investments. By partnering with corporate management teams, Capital Southwest seeks to support growth initiatives, recapitalizations, acquisitions, and ownership transitions.

Founded in 1961 and headquartered in Dallas, Texas, Capital Southwest has cultivated a track record of long-term partnerships with privately held businesses and select public companies.