Capital Southwest (NASDAQ:CSWC) Director Acquires $49,996.80 in Stock

Capital Southwest Corporation (NASDAQ:CSWC) Director William Thomas III bought 2,170 shares of the firm’s stock in a transaction on Thursday, October 1st. The stock was acquired at an average cost of $23.04 per share, with a total value of $49,996.80. Following the completion of the transaction, the director directly owned 22,842 shares of the company’s stock, valued at approximately $526,279.68. This represents a 10.50% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which can be accessed through the SEC website.

Capital Southwest Stock Up 0.9%

Capital Southwest stock opened at $23.52 on Friday. The company has a market capitalization of $1.50 billion, a P/E ratio of 12.99 and a beta of 0.71. The firm’s fifty day simple moving average is $24.28 and its 200-day simple moving average is $23.60. The company has a current ratio of 0.17, a quick ratio of 0.17 and a debt-to-equity ratio of 0.62. Capital Southwest Corporation has a 1-year low of $19.37 and a 1-year high of $25.75.

Capital Southwest (NASDAQ:CSWC) last issued its quarterly earnings data on Monday, August 3rd. The asset manager reported $0.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. The firm had revenue of $61.05 million during the quarter, compared to analysts’ expectations of $61.22 million. Capital Southwest had a net margin of 46.68% and a return on equity of 13.88%. During the same period in the prior year, the company posted $0.61 earnings per share. Sell-side analysts forecast that Capital Southwest Corporation will post 2.27 earnings per share for the current fiscal year.

Capital Southwest Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 15th will be paid a dividend of $0.1934 per share. This represents a $2.32 annualized dividend and a dividend yield of 9.9%. The ex-dividend date is Tuesday, December 15th. Capital Southwest’s dividend payout ratio is 128.18%.

Hedge Funds Weigh In On Capital Southwest

Several large investors have recently made changes to their positions in the business. Empowered Funds LLC bought a new position in Capital Southwest during the first quarter worth $13,694,000. Empirical Finance LLC bought a new stake in Capital Southwest in the 1st quarter valued at $13,689,000. Legal & General Group Plc bought a new stake in Capital Southwest in the 2nd quarter valued at $11,886,000. Van ECK Associates Corp grew its position in Capital Southwest by 35.4% in the 2nd quarter. Van ECK Associates Corp now owns 1,526,667 shares of the asset manager’s stock worth $36,289,000 after purchasing an additional 399,106 shares during the last quarter. Finally, Melia Wealth LLC acquired a new stake in Capital Southwest in the 2nd quarter worth $8,979,000. Institutional investors and hedge funds own 23.42% of the company’s stock.

Analyst Ratings Changes

A number of research analysts recently weighed in on the company. Citigroup reissued a “market outperform” rating on shares of Capital Southwest in a research note on Wednesday, August 5th. B. Riley Financial increased their price target on Capital Southwest from $24.50 to $25.50 and gave the company a “buy” rating in a report on Wednesday, August 5th. Weiss Ratings upgraded shares of Capital Southwest from a “buy (b-)” rating to a “buy (b)” rating in a research note on Monday, September 28th. Finally, Citizens Jmp upped their price objective on shares of Capital Southwest from $25.00 to $26.00 and gave the stock a “market outperform” rating in a report on Wednesday, August 5th. Six equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Capital Southwest presently has an average rating of “Moderate Buy” and a consensus target price of $23.60.

Capital Southwest Company Profile

Capital Southwest Corporation (NASDAQ: CSWC) is an internally managed business development company (BDC) that provides financing and investment solutions to middle-market companies. The company primarily invests in privately held businesses through secured debt, including first-lien, second-lien and unitranche loans, as well as subordinated debt and equity investments.

Capital Southwest generally focuses on established lower-middle-market companies in the United States. Its portfolio companies operate across a range of industries, and the company seeks to support acquisitions, recapitalizations, growth initiatives and other strategic or general corporate purposes through customized financing arrangements.

Founded in 1961, Capital Southwest has a long history as an investment company and operates under the regulatory framework governing BDCs.