Capital Southwest (NASDAQ:CSWC) Reaches New 12-Month Low – What’s Next?

Capital Southwest Co. (NASDAQ:CSWC)’s share price hit a new 52-week low during trading on Friday . The stock traded as low as $21.82 and last traded at $21.87, with a volume of 150319 shares changing hands. The stock had previously closed at $21.92.

Analyst Ratings Changes

Separately, B. Riley raised their price objective on Capital Southwest from $24.00 to $24.50 and gave the company a “neutral” rating in a report on Wednesday, October 30th.

Capital Southwest Stock Down 0.8 %

The company has a market capitalization of $1.04 billion, a P/E ratio of 13.25 and a beta of 1.23. The company has a current ratio of 0.16, a quick ratio of 0.16 and a debt-to-equity ratio of 0.35. The stock’s fifty day moving average is $23.89 and its 200 day moving average is $24.89.

Capital Southwest (NASDAQ:CSWC) last posted its earnings results on Monday, October 28th. The asset manager reported $0.66 earnings per share for the quarter, topping analysts’ consensus estimates of $0.65 by $0.01. Capital Southwest had a net margin of 37.77% and a return on equity of 15.54%. The company had revenue of $48.71 million during the quarter, compared to analyst estimates of $49.79 million. During the same period in the prior year, the business posted $0.69 earnings per share. Research analysts predict that Capital Southwest Co. will post 2.54 EPS for the current fiscal year.

Capital Southwest Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 31st. Stockholders of record on Friday, December 13th will be paid a dividend of $0.63 per share. The ex-dividend date of this dividend is Friday, December 13th. This represents a $2.52 annualized dividend and a dividend yield of 11.60%. Capital Southwest’s dividend payout ratio (DPR) is presently 141.46%.

Institutional Trading of Capital Southwest

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Harbor Capital Advisors Inc. increased its position in Capital Southwest by 146.7% during the 3rd quarter. Harbor Capital Advisors Inc. now owns 387,647 shares of the asset manager’s stock valued at $9,804,000 after purchasing an additional 230,513 shares during the period. Van ECK Associates Corp lifted its holdings in Capital Southwest by 25.0% in the second quarter. Van ECK Associates Corp now owns 1,059,217 shares of the asset manager’s stock worth $27,635,000 after buying an additional 211,992 shares during the period. Marshall Wace LLP bought a new stake in Capital Southwest during the 2nd quarter valued at approximately $1,937,000. Benjamin Edwards Inc. boosted its position in Capital Southwest by 970.6% during the 3rd quarter. Benjamin Edwards Inc. now owns 80,201 shares of the asset manager’s stock valued at $2,028,000 after acquiring an additional 72,710 shares in the last quarter. Finally, Legacy Capital Wealth Partners LLC purchased a new position in shares of Capital Southwest during the 2nd quarter worth approximately $1,775,000. Hedge funds and other institutional investors own 23.42% of the company’s stock.

Capital Southwest Company Profile

Capital Southwest Corporation is a business development company specializing in credit and private equity and venture capital investments in middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, industry consolidation, recapitalizations and growth capital investments.