Capital Southwest Co. (NASDAQ:CSWC) to Issue $0.19 Monthly Dividend

Capital Southwest Co. (NASDAQ:CSWC - Get Free Report) declared a monthly dividend on Friday, June 13th, Wall Street Journal reports. Stockholders of record on Monday, September 15th will be given a dividend of 0.1934 per share by the asset manager on Tuesday, September 30th. This represents a $2.32 annualized dividend and a dividend yield of 11.23%. The ex-dividend date is Monday, September 15th.

Capital Southwest has a dividend payout ratio of 99.1% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Research analysts expect Capital Southwest to earn $2.44 per share next year, which means the company should continue to be able to cover its $2.32 annual dividend with an expected future payout ratio of 95.1%.

Capital Southwest Stock Up 0.0%

Capital Southwest stock traded up $0.01 during midday trading on Monday, reaching $20.66. The stock had a trading volume of 518,944 shares, compared to its average volume of 446,218. Capital Southwest has a 1-year low of $17.46 and a 1-year high of $27.23. The company has a debt-to-equity ratio of 0.64, a quick ratio of 0.18 and a current ratio of 0.18. The firm's fifty day simple moving average is $20.36 and its 200-day simple moving average is $21.63. The stock has a market capitalization of $1.11 billion, a P/E ratio of 14.65 and a beta of 0.94.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last announced its earnings results on Wednesday, May 14th. The asset manager reported $0.54 EPS for the quarter, missing the consensus estimate of $0.62 by ($0.08). Capital Southwest had a return on equity of 15.18% and a net margin of 33.49%. The business had revenue of $52.34 million for the quarter, compared to analyst estimates of $52.83 million. During the same quarter in the previous year, the company posted $0.68 EPS. As a group, analysts expect that Capital Southwest will post 2.54 EPS for the current fiscal year.

Institutional Trading of Capital Southwest

A number of hedge funds have recently made changes to their positions in CSWC. Goldman Sachs Group Inc. raised its stake in Capital Southwest by 246.5% in the 1st 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. Royal Bank of Canada grew its stake in Capital Southwest by 13.4% in the 1st quarter. Royal Bank of Canada now owns 69,139 shares of the asset manager's stock valued at $1,544,000 after buying an additional 8,188 shares during the last quarter. Finally, Caxton Associates LLP acquired a new position in Capital Southwest in the 1st quarter valued at about $318,000. 23.42% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on CSWC shares. UBS Group lowered their price target on Capital Southwest from $23.50 to $20.50 and set a "neutral" rating on the stock in a research report on Thursday, April 17th. Wall Street Zen upgraded shares of Capital Southwest from a "sell" rating to a "hold" rating in a report on Saturday, April 19th. Finally, Raymond James dropped their price target on shares of Capital Southwest from $24.00 to $23.00 and set an "outperform" rating on the stock in a research report on Friday, May 16th.

About Capital Southwest

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.