Capital Southwest Corporation (NASDAQ:CSWC) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts have given Capital Southwest an average recommendation of Moderate Buy (six buys, three holds) with a one-year average target of about $23.42.
• The firm announced a monthly dividend of $0.1934 payable June 30 (ex-dividend June 15), implying a 9.6% yield but a high payout ratio of 128.18%.
• In its most recent quarter Capital Southwest reported EPS of $0.64 (in line with estimates) and revenue of $61.45M (beat estimates), while the stock trades near $24.30 with a P/E of 13.4 and a $1.46B market cap.

Capital Southwest Corporation (NASDAQ:CSWC - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the nine ratings firms that are covering the firm, Marketbeat.com reports. Three research analysts have rated the stock with a hold rating and six have given a buy rating to the company. The average 1-year target price among analysts that have covered the stock in the last year is $23.4167.

A number of research analysts have weighed in on CSWC shares. Weiss Ratings upgraded shares of Capital Southwest from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, January 28th. Zacks Research upgraded shares of Capital Southwest from a "strong sell" rating to a "hold" rating in a research report on Monday, January 5th.

Capital Southwest Stock Performance

CSWC stock opened at $24.30 on Monday. The company has a quick ratio of 0.15, a current ratio of 0.15 and a debt-to-equity ratio of 0.51. Capital Southwest has a twelve month low of $19.07 and a twelve month high of $24.42. The stock has a market capitalization of $1.46 billion, a price-to-earnings ratio of 13.43 and a beta of 0.72. The firm's fifty day simple moving average is $22.50 and its two-hundred day simple moving average is $21.98.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last posted its quarterly earnings data on Monday, February 2nd. The asset manager reported $0.64 earnings per share for the quarter, meeting analysts' consensus estimates 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 analysts' expectations of $57.37 million. During the same quarter in the previous year, the business posted $0.63 earnings per share. As a group, analysts anticipate that Capital Southwest will post 2.54 earnings per share for the current year.

Capital Southwest Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be paid a dividend of $0.1934 per share. This represents a c) dividend on an annualized basis and a dividend yield of 9.6%. The ex-dividend date of this dividend is Monday, June 15th. Capital Southwest's payout ratio is currently 128.18%.

Institutional Trading of Capital Southwest

Large investors have recently made changes to their positions in the stock. Triumph Capital Management purchased a new stake in shares of Capital Southwest during the third quarter valued at $28,000. Tower Research Capital LLC TRC boosted its stake in shares of 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 period. State of Alaska Department of Revenue purchased a new stake in shares of Capital Southwest during the third quarter valued at $48,000. Osbon Capital Management LLC purchased a new stake in shares of Capital Southwest during the fourth quarter valued at $55,000. Finally, CENTRAL TRUST Co purchased a new stake in shares of Capital Southwest during the first quarter valued at $60,000. 23.42% of the stock is owned by hedge funds and other institutional investors.

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.

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