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

Shares of Capital Southwest Corporation (NASDAQ:CSWC) have been given a consensus rating of “Moderate Buy” by the nine brokerages that are covering the firm, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold rating and six have issued a buy rating on the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $23.4167.

A number of analysts recently commented on CSWC shares. Weiss Ratings raised Capital Southwest from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, January 28th. Loop Capital reiterated a “buy” rating and issued a $23.00 target price on shares of Capital Southwest in a report on Wednesday, November 5th. Zacks Research upgraded shares of Capital Southwest from a “strong sell” rating to a “hold” rating in a report on Monday, January 5th. Capital One Financial set a $22.00 price target on Capital Southwest in a research note on Tuesday, November 4th. Finally, Noble Financial raised Capital Southwest to a “buy” rating in a research note on Wednesday, November 5th.

Capital Southwest Price Performance

Capital Southwest stock opened at $21.87 on Friday. The stock’s 50 day moving average price is $22.81 and its two-hundred day moving average price is $22.06. The stock has a market capitalization of $1.32 billion, a price-to-earnings ratio of 12.08 and a beta of 0.76. The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.15 and a current ratio of 0.15. Capital Southwest has a 52-week low of $17.46 and a 52-week high of $23.84.

Capital Southwest (NASDAQ:CSWC) last issued its earnings results on Monday, February 2nd. The asset manager reported $0.64 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.64. Capital Southwest had a net margin of 45.46% and a return on equity of 13.76%. The business had revenue of $61.45 million for the quarter, compared to analyst estimates of $57.37 million. During the same period in the prior year, the firm earned $0.63 earnings per share. On average, equities analysts predict that Capital Southwest will post 2.54 earnings per share for the current year.

Capital Southwest Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be paid a dividend of $0.1934 per share. The ex-dividend date is Monday, June 15th. This represents a c) annualized dividend and a yield of 10.6%. Capital Southwest’s dividend payout ratio (DPR) is 128.18%.

Institutional Trading of Capital Southwest

Several institutional investors and hedge funds have recently made changes to their positions in the company. Triumph Capital Management bought a new position in shares of Capital Southwest during the 3rd quarter worth $28,000. Tower Research Capital LLC TRC lifted its holdings in Capital Southwest by 13,307.1% during 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. boosted 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 purchasing an additional 788 shares during the period. State of Alaska Department of Revenue purchased a new position in shares of Capital Southwest in the third quarter worth about $48,000. Finally, First Horizon Advisors Inc. raised its position in shares of Capital Southwest by 1,214.0% in the second quarter. First Horizon Advisors Inc. now owns 2,628 shares of the asset manager’s stock valued at $58,000 after purchasing an additional 2,428 shares during the period. Hedge funds and other institutional investors own 23.42% of the company’s stock.

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.