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

Key Points

• Analysts rate Capital Southwest “Moderate Buy”: Six of nine analysts recommend buying the stock, while three rate it a hold. The average 12-month price target is $23.60.
• Capital Southwest reported quarterly EPS of $0.58, exceeding the $0.56 consensus estimate, although revenue of $61.05 million was slightly below expectations.
• The company declared a monthly dividend of $0.1934 per share, equivalent to an approximately 9.3% annualized yield; shares recently traded at $24.96, near their 52-week high.

Shares of Capital Southwest Corporation (NASDAQ:CSWC - Get Free Report) have earned an average recommendation of "Moderate Buy" from the nine research firms that are covering the stock, MarketBeat reports. Three equities research analysts have rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average twelve-month target price among brokers that have covered the stock in the last year is $23.60.

Several research analysts have weighed in on CSWC shares. Weiss Ratings reiterated a "buy (b-)" rating on shares of Capital Southwest in a report on Thursday, June 18th. Citigroup reissued a "market outperform" rating on shares of Capital Southwest in a research report on Wednesday, August 5th. B. Riley Financial increased their price target on shares of Capital Southwest from $24.50 to $25.50 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Finally, Citizens Jmp lifted their price target on shares of Capital Southwest from $25.00 to $26.00 and gave the company a "market outperform" rating in a report on Wednesday, August 5th.

Capital Southwest Stock Up 1.1%

CSWC opened at $24.96 on Friday. The firm has a market cap of $1.59 billion, a P/E ratio of 13.79 and a beta of 0.69. The business's fifty day simple moving average is $23.93 and its 200 day simple moving average is $23.29. Capital Southwest has a 52 week low of $19.37 and a 52 week high of $25.37. The company has a quick ratio of 0.17, a current ratio of 0.17 and a debt-to-equity ratio of 0.62.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last announced its earnings results on Monday, August 3rd. The asset manager reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.02. The firm had revenue of $61.05 million during the quarter, compared to the consensus estimate of $61.22 million. Capital Southwest had a net margin of 46.68% and a return on equity of 13.88%. During the same quarter in the previous year, the company posted $0.61 EPS. As a group, equities research analysts anticipate that Capital Southwest will post 2.27 EPS for the current fiscal year.

Capital Southwest Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be given a $0.1934 dividend. This represents a c) annualized dividend and a dividend yield of 9.3%. The ex-dividend date of this dividend is Tuesday, September 15th. Capital Southwest's dividend payout ratio (DPR) is 128.18%.

Institutional Investors Weigh In On Capital Southwest

Institutional investors have recently added to or reduced their stakes in the company. Symphony Financial Ltd. Co. increased its stake in Capital Southwest by 2.9% during the second quarter. Symphony Financial Ltd. Co. now owns 42,154 shares of the asset manager's stock worth $991,000 after acquiring an additional 1,185 shares during the last quarter. Two Sigma Securities LLC purchased a new position in shares of Capital Southwest in the 2nd quarter worth about $275,000. Wedbush Securities Inc. lifted its stake in shares of Capital Southwest by 17.7% in the 2nd quarter. Wedbush Securities Inc. now owns 19,276 shares of the asset manager's stock valued at $458,000 after purchasing an additional 2,898 shares in the last quarter. Van ECK Associates Corp grew its holdings in shares of Capital Southwest by 35.4% during the 2nd quarter. Van ECK Associates Corp now owns 1,526,667 shares of the asset manager's stock worth $36,289,000 after purchasing an additional 399,106 shares during the period. Finally, Navellier & Associates Inc. purchased a new stake in shares of Capital Southwest during the 2nd quarter worth about $924,000. Hedge funds and other 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.

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