Capital Southwest Corporation (NASDAQ:CSWC) Stock Has Average Target Price of $24.10 According to Brokerages

Shares of Capital Southwest Corporation (NASDAQ:CSWC) have received an average recommendation of “Moderate Buy” from the eight analysts that are presently covering the stock, MarketBeat.com reports. Two equities research analysts have rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $24.10.

A number of research analysts recently commented on the stock. UBS Group upped their price target on shares of Capital Southwest from $23.50 to $24.00 and gave the company a “neutral” rating in a research note on Friday, October 9th. Weiss Ratings cut shares of Capital Southwest from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday. Citizens Jmp lifted their price objective on shares of Capital Southwest from $25.00 to $26.00 and gave the stock a “market outperform” rating in a research note on Wednesday, August 5th. Citigroup reiterated a “market outperform” rating on shares of Capital Southwest in a research report on Wednesday, August 5th. Finally, B. Riley Financial increased their price target on Capital Southwest from $24.50 to $25.50 and gave the stock a “buy” rating in a research report on Wednesday, August 5th.

Capital Southwest Stock Performance

CSWC opened at $23.42 on Monday. The business’s 50-day simple moving average is $24.22 and its 200 day simple moving average is $23.71. Capital Southwest has a 52-week low of $19.91 and a 52-week high of $25.75. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.17 and a current ratio of 0.17. The firm has a market capitalization of $1.49 billion, a PE ratio of 9.96 and a beta of 0.71.

Capital Southwest (NASDAQ:CSWC) last posted its quarterly earnings results on Monday, August 3rd. The asset manager reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.02. The firm had revenue of $61.05 million for the quarter, compared to analyst estimates of $61.22 million. Capital Southwest had a return on equity of 13.88% and a net margin of 46.68%. During the same quarter in the previous year, the firm earned $0.61 EPS. As a group, sell-side analysts expect that Capital Southwest 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. Investors of record on Tuesday, December 15th will be paid a $0.1934 dividend. This represents a $2.32 dividend on an annualized basis and a yield of 9.9%. The ex-dividend date of this dividend is Tuesday, December 15th. Capital Southwest’s payout ratio is 128.18%.

Insiders Place Their Bets

In other news, Director William Thomas, III acquired 2,170 shares of Capital Southwest stock in a transaction on Thursday, October 1st. The shares were purchased at an average cost of $23.04 per share, for a total transaction of $49,996.80. Following the completion of the purchase, 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 position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 2.70% of the stock is owned by corporate insiders.

Institutional Trading of Capital Southwest

Institutional investors and hedge funds have recently made changes to their positions in the company. Leonteq Securities AG increased its position in Capital Southwest by 11.1% during the 1st quarter. Leonteq Securities AG now owns 7,000 shares of the asset manager’s stock worth $155,000 after purchasing an additional 700 shares in the last quarter. Allworth Financial LP grew its position in Capital Southwest by 16.9% during the 2nd quarter. Allworth Financial LP now owns 6,535 shares of the asset manager’s stock worth $155,000 after acquiring an additional 947 shares during the last quarter. Symphony Financial Ltd. Co. grew its position in Capital Southwest by 2.9% during the 2nd quarter. Symphony Financial Ltd. Co. now owns 42,154 shares of the asset manager’s stock worth $991,000 after acquiring an additional 1,185 shares during the last quarter. Squarepoint Ops LLC increased its holdings in Capital Southwest by 12.5% in the 2nd quarter. Squarepoint Ops LLC now owns 10,845 shares of the asset manager’s stock worth $258,000 after purchasing an additional 1,208 shares in the last quarter. Finally, Sunbelt Securities Inc. increased its holdings in Capital Southwest by 4.3% in the 1st quarter. Sunbelt Securities Inc. now owns 37,030 shares of the asset manager’s stock worth $819,000 after purchasing an additional 1,530 shares in the last quarter. Institutional investors own 23.42% of the company’s stock.

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.