Zacks Research Upgrades Capital Southwest (NASDAQ:CSWC) to Hold

Capital Southwest (NASDAQ:CSWC) was upgraded by research analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other research analysts have also recently commented on the company. UBS Group dropped their price target on Capital Southwest from $23.00 to $21.50 and set a “neutral” rating on the stock in a research report on Tuesday, October 14th. Noble Financial raised shares of Capital Southwest to a “buy” rating in a report on Wednesday, November 5th. Capital One Financial set a $22.00 price objective on Capital Southwest in a report on Tuesday, November 4th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Capital Southwest in a research report on Monday, December 29th. Finally, Loop Capital reiterated a “buy” rating and set a $23.00 price target on shares of Capital Southwest in a research report on Wednesday, November 5th. Six analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $23.64.

Capital Southwest Price Performance

Shares of NASDAQ CSWC opened at $22.79 on Monday. The stock’s 50 day moving average price is $21.40 and its 200-day moving average price is $21.95. The company has a quick ratio of 0.16, a current ratio of 0.16 and a debt-to-equity ratio of 0.26. Capital Southwest has a twelve month low of $17.46 and a twelve month high of $23.86. The company has a market capitalization of $1.31 billion, a PE ratio of 14.16 and a beta of 0.76.

Capital Southwest (NASDAQ:CSWC) last announced its quarterly earnings data on Monday, November 3rd. The asset manager reported $0.57 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.58 by ($0.01). The business had revenue of $56.95 million during 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 quarter last year, the company earned $0.66 EPS. On average, equities analysts anticipate that Capital Southwest will post 2.54 EPS for the current year.

Hedge Funds Weigh In On Capital Southwest

Several institutional investors and hedge funds have recently added to or reduced their stakes in CSWC. Royal Bank of Canada lifted its holdings in shares of Capital Southwest by 13.4% during the first quarter. Royal Bank of Canada now owns 69,139 shares of the asset manager’s stock valued at $1,544,000 after purchasing an additional 8,188 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in Capital Southwest by 246.5% in the first quarter. Goldman Sachs Group Inc. now owns 257,672 shares of the asset manager’s stock valued at $5,751,000 after acquiring an additional 183,313 shares during the period. Sciencast Management LP purchased a new position in shares of Capital Southwest in the first quarter worth approximately $261,000. Caxton Associates LLP purchased a new position in shares of Capital Southwest during the 1st quarter worth $318,000. Finally, Confluence Investment Management LLC increased its position in Capital Southwest by 0.6% in the second quarter. Confluence Investment Management LLC now owns 102,107 shares of the asset manager’s stock worth $2,250,000 after buying an additional 585 shares in the last quarter. Hedge funds and other institutional investors own 23.42% of the company’s stock.

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.