Capital Southwest Corporation (NASDAQ:CSWC) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Capital Southwest Corporation (NASDAQ:CSWC) has been assigned a consensus recommendation of “Moderate Buy” from the ten analysts that are currently covering the company, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold recommendation and seven have issued a buy recommendation on the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $23.6429.

A number of research analysts have recently weighed in on CSWC shares. Loop Capital reissued a “buy” rating and set a $23.00 price objective on shares of Capital Southwest in a research note on Wednesday, November 5th. Weiss Ratings raised Capital Southwest from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, January 28th. Zacks Research raised Capital Southwest from a “strong sell” rating to a “hold” rating in a report on Monday, January 5th. Noble Financial raised Capital Southwest to a “buy” rating in a research note on Wednesday, November 5th. Finally, UBS Group dropped their price objective on Capital Southwest from $23.00 to $21.50 and set a “neutral” rating for the company in a research report on Tuesday, October 14th.

Key Stories Impacting Capital Southwest

Here are the key news stories impacting Capital Southwest this week:

• Positive Sentiment: Q3 fiscal results showed portfolio and revenue growth: total investment portfolio of $2.0B, $61.4M of investment income (beat consensus), $244M of new originations, and pre‑tax net investment income of $34.6M. The company also maintained regular monthly dividends and declared a supplemental dividend, which supports yield‑focused investor demand. Read More.
• Positive Sentiment: New off‑balance‑sheet joint venture with another private credit manager to focus on first‑out senior secured loans should expand deal flow and capital efficiency, making CSWC more competitive on larger or bifurcated financings. Read More.
• Positive Sentiment: Capital raising via the Equity ATM (≈$52.6M raised in the quarter) and reported NAV improvement (from $16.62 to $16.75) give the company liquidity and support reinvestment/portfolio growth. Read More.
• Neutral Sentiment: Market and analyst coverage: transcripts and deep dives are circulating (earnings call transcript and analyst notes), providing context but no material rating changes were reported in the period. These items help inform trading but are not direct catalysts. Read More.
• Negative Sentiment: Rising expense and interest pressures: interest expense and total operating expenses increased (accrued bonuses cited), and interest costs rose alongside higher average borrowings — a margin headwind to watch going forward. Read More.
• Negative Sentiment: Credit performance noise: the quarter included $8.7M of net losses on debt investments and a $2.2M realized loss on extinguishment of debt; while non‑accruals remain modest (~$29.2M, 1.5% of portfolio), these items could pressure future realized returns if credit stress increases. Read More.

Institutional Trading of Capital Southwest

A number of hedge funds have recently bought and sold shares of the company. Triumph Capital Management acquired a new position in Capital Southwest in the 3rd quarter valued at $28,000. Tower Research Capital LLC TRC increased its stake in Capital Southwest by 13,307.1% in the second quarter. Tower Research Capital LLC TRC now owns 1,877 shares of the asset manager’s stock valued at $41,000 after purchasing an additional 1,863 shares during the last quarter. Nomura Asset Management Co. Ltd. lifted its position in Capital Southwest by 58.5% during the second quarter. Nomura Asset Management Co. Ltd. now owns 2,135 shares of the asset manager’s stock worth $47,000 after buying an additional 788 shares during the period. State of Alaska Department of Revenue acquired a new stake in Capital Southwest in the 3rd quarter worth about $48,000. Finally, First Horizon Advisors Inc. grew its holdings in Capital Southwest by 1,214.0% in the 2nd quarter. First Horizon Advisors Inc. now owns 2,628 shares of the asset manager’s stock valued at $58,000 after buying an additional 2,428 shares during the period. Institutional investors and hedge funds own 23.42% of the company’s stock.

Capital Southwest Trading Up 0.6%

NASDAQ:CSWC opened at $23.28 on Wednesday. Capital Southwest has a 52-week low of $17.46 and a 52-week high of $23.86. The company has a quick ratio of 0.16, a current ratio of 0.16 and a debt-to-equity ratio of 0.26. The stock has a fifty day simple moving average of $22.43 and a 200-day simple moving average of $22.05. The company has a market capitalization of $1.34 billion, a PE ratio of 12.86 and a beta of 0.76.

Capital Southwest (NASDAQ:CSWC) last issued its quarterly earnings data on Monday, February 2nd. The asset manager reported $0.64 EPS for the quarter, meeting analysts’ consensus estimates of $0.64. The firm had revenue of $61.45 million for the quarter, compared to analysts’ expectations of $57.37 million. Capital Southwest had a net margin of 45.46% and a return on equity of 14.06%. During the same period in the prior year, the company earned $0.63 EPS. On average, equities research analysts expect that Capital Southwest will post 2.54 earnings per share for the current fiscal year.

Capital Southwest Dividend Announcement

The company also recently disclosed a monthly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be given a $0.1934 dividend. This represents a c) dividend on an annualized basis and a dividend yield of 10.0%. The ex-dividend date of this dividend is Friday, March 13th. Capital Southwest’s payout ratio is currently 144.10%.

About Capital Southwest

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.