Investors Purchase High Volume of Put Options on Capital Southwest (NASDAQ:CSWC)

Capital Southwest Corporation (NASDAQ:CSWC) was the recipient of some unusual options trading on Friday. Traders purchased 3,523 put options on the stock. This is an increase of 1,040% compared to the typical daily volume of 309 put options.

Capital Southwest Stock Performance

Capital Southwest stock opened at $21.45 on Friday. The stock’s 50 day simple moving average is $22.62 and its two-hundred day simple moving average is $21.95. The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.15 and a current ratio of 0.15. The stock has a market cap of $1.29 billion, a price-to-earnings ratio of 11.85 and a beta of 0.75. Capital Southwest has a fifty-two week low of $17.46 and a fifty-two week high of $23.84.

Capital Southwest (NASDAQ:CSWC) last announced its quarterly earnings data on Monday, February 2nd. The asset manager reported $0.64 EPS for the quarter, meeting the consensus estimate of $0.64. The firm had revenue of $61.45 million for the quarter, compared to the consensus estimate of $57.37 million. Capital Southwest had a net margin of 45.46% and a return on equity of 13.76%. During the same period last year, the firm earned $0.63 EPS. As a group, analysts expect that Capital Southwest will post 2.54 earnings per share for the current fiscal year.

Capital Southwest Dividend Announcement

The firm also recently disclosed a monthly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be paid a $0.1934 dividend. The ex-dividend date of this dividend is Monday, June 15th. This represents a c) dividend on an annualized basis and a dividend yield of 10.8%. Capital Southwest’s dividend payout ratio is 128.18%.

Analyst Ratings Changes

A number of analysts recently commented on CSWC shares. Zacks Research raised Capital Southwest from a “strong sell” rating to a “hold” rating in a research note on Monday, January 5th. Weiss Ratings raised shares of Capital Southwest from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, January 28th. Six research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $23.42.

Institutional Trading of Capital Southwest

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Van ECK Associates Corp boosted its stake in Capital Southwest by 8.2% in the 3rd quarter. Van ECK Associates Corp now owns 1,457,146 shares of the asset manager’s stock worth $31,853,000 after purchasing an additional 109,846 shares during the period. Sound Income Strategies LLC raised its position in shares of Capital Southwest by 17.1% during the fourth quarter. Sound Income Strategies LLC now owns 885,967 shares of the asset manager’s stock valued at $20,980,000 after buying an additional 129,181 shares during the last quarter. UBS Group AG lifted its holdings in shares of Capital Southwest by 5.0% in the fourth quarter. UBS Group AG now owns 817,148 shares of the asset manager’s stock worth $18,100,000 after buying an additional 38,987 shares in the last quarter. Melia Wealth LLC lifted its holdings in shares of Capital Southwest by 2.6% in the fourth quarter. Melia Wealth LLC now owns 502,988 shares of the asset manager’s stock worth $11,141,000 after buying an additional 12,537 shares in the last quarter. Finally, Zuckerman Investment Group LLC boosted its position in shares of Capital Southwest by 7.8% during the second quarter. Zuckerman Investment Group LLC now owns 460,375 shares of the asset manager’s stock worth $10,147,000 after acquiring an additional 33,355 shares during the last quarter. 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.