Capital Southwest Corporation (NASDAQ:CSWC) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Capital Southwest Corporation (NASDAQ:CSWC) currently holds a consensus rating of "Moderate Buy" from six analysts, with an average price target of $24.30.
• The company recently declared a monthly dividend of $0.1934, which represents an annualized yield of 10.2%.
• In its latest earnings report, Capital Southwest reported earnings of $0.59 per share, matching analyst expectations and generating $55.95 million in revenue.

Shares of Capital Southwest Corporation (NASDAQ:CSWC - Get Free Report) have earned a consensus rating of "Moderate Buy" from the six ratings firms that are presently covering the stock, Marketbeat Ratings reports. One equities research analyst has rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average 12 month price objective among brokers that have covered the stock in the last year is $24.30.

A number of analysts have commented on CSWC shares. Citigroup upgraded Capital Southwest to an "outperform" rating in a research report on Tuesday, June 24th. Citizens Jmp upgraded Capital Southwest from a "market perform" rating to an "outperform" rating and set a $25.00 price objective for the company in a research report on Tuesday, June 24th. Raymond James Financial set a $25.00 price objective on Capital Southwest and gave the stock an "outperform" rating in a research report on Friday. B. Riley raised their price objective on Capital Southwest from $23.50 to $24.00 and gave the stock a "buy" rating in a research report on Friday, August 8th. Finally, Wall Street Zen raised Capital Southwest from a "sell" rating to a "hold" rating in a report on Saturday, April 19th.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CSWC. Fortitude Family Office LLC bought a new position in Capital Southwest during the second quarter worth about $31,000. Ameriflex Group Inc. bought a new position in Capital Southwest during the fourth quarter worth about $33,000. Quarry LP lifted its holdings in Capital Southwest by 52.5% during the fourth quarter. Quarry LP now owns 2,126 shares of the asset manager's stock worth $46,000 after acquiring an additional 732 shares in the last quarter. Nomura Asset Management Co. Ltd. raised its stake in shares of Capital Southwest by 58.5% in the 2nd quarter. Nomura Asset Management Co. Ltd. now owns 2,135 shares of the asset manager's stock valued at $47,000 after purchasing an additional 788 shares during the period. Finally, Garde Capital Inc. acquired a new stake in shares of Capital Southwest in the 1st quarter valued at about $54,000. 23.42% of the stock is currently owned by institutional investors.

Capital Southwest Price Performance

Shares of NASDAQ:CSWC opened at $22.80 on Wednesday. Capital Southwest has a fifty-two week low of $17.46 and a fifty-two week high of $25.90. The business has a 50-day moving average of $22.26 and a two-hundred day moving average of $21.73. The stock has a market capitalization of $1.27 billion, a P/E ratio of 13.82 and a beta of 0.98. The company has a debt-to-equity ratio of 0.53, a current ratio of 0.19 and a quick ratio of 0.19.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The asset manager reported $0.59 earnings per share for the quarter, hitting the consensus estimate of $0.59. Capital Southwest had a return on equity of 14.17% and a net margin of 39.95%. The business had revenue of $55.95 million during the quarter, compared to analysts' expectations of $54.36 million. During the same quarter in the previous year, the firm earned $0.69 EPS. On average, equities research analysts predict that Capital Southwest will post 2.54 EPS for the current fiscal year.

Capital Southwest Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be given a $0.1934 dividend. This represents a c) annualized dividend and a dividend yield of 10.2%. The ex-dividend date is Monday, September 15th. Capital Southwest's dividend payout ratio (DPR) is currently 140.61%.

Capital Southwest Company Profile

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.

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