Capital Southwest (NASDAQ:CSWC) Releases Earnings Results, Misses Expectations By $0.24 EPS

Capital Southwest (NASDAQ:CSWC) issued its earnings results on Monday. The asset manager reported $0.33 EPS for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.24), FiscalAI reports. The business had revenue of $67.16 million during the quarter, compared to analyst estimates of $65.61 million. Capital Southwest had a net margin of 46.68% and a return on equity of 13.88%.

Capital Southwest Stock Performance

NASDAQ:CSWC traded up $0.26 during mid-day trading on Monday, reaching $23.43. The stock had a trading volume of 416,824 shares, compared to its average volume of 635,103. Capital Southwest has a twelve month low of $19.91 and a twelve month high of $25.75. The business has a 50 day simple moving average of $23.72 and a 200 day simple moving average of $23.40. The firm has a market capitalization of $1.49 billion, a price-to-earnings ratio of 12.94 and a beta of 0.67. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.17 and a current ratio of 0.17.

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 issued a dividend of $0.1934 per share. The ex-dividend date of this dividend is Tuesday, December 15th. This represents a $2.32 annualized dividend and a dividend yield of 9.9%. Capital Southwest’s dividend payout ratio (DPR) is currently 128.18%.

Insiders Place Their Bets

In other news, Director William Thomas, III acquired 2,170 shares of Capital Southwest stock in a transaction that occurred on Thursday, October 1st. The stock was purchased at an average cost of $23.04 per share, with a total value of $49,996.80. Following the completion of the acquisition, the director owned 22,842 shares in the company, valued at $526,279.68. This trade represents a 10.50% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 2.70% of the stock is owned by corporate insiders.

Analyst Ratings Changes

CSWC has been the subject of a number of recent analyst reports. Weiss Ratings downgraded Capital Southwest from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, October 13th. Citizens Jmp upped their target price on shares of Capital Southwest from $25.00 to $26.00 and gave the company a “market outperform” rating in a research report on Wednesday, August 5th. UBS Group increased their target price on shares of Capital Southwest from $23.50 to $24.00 and gave the stock a “neutral” rating in a research note on Friday, October 9th. Citigroup reiterated a “market outperform” rating on shares of Capital Southwest in a research report on Wednesday, August 5th. Finally, B. Riley Financial boosted their price target on shares of Capital Southwest from $24.50 to $25.50 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Six equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $24.10.

About Capital Southwest

Capital Southwest Corporation (NASDAQ: CSWC) is a business development company that provides financing to middle-market and lower-middle-market businesses in the United States. The company primarily invests in privately held companies that may require capital to support growth, acquisitions, recapitalizations, ownership transitions, or other strategic initiatives.

Its investment portfolio generally consists of senior secured loans, including first-lien and second-lien debt, as well as subordinated debt and equity investments.