Capital Southwest Corporation (NASDAQ:CSWC) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Capital Southwest Corporation (NASDAQ:CSWC) has received a consensus rating of "Moderate Buy" from six research firms, including five buy recommendations and one hold recommendation.
• The company has a current average price target of $24.30 among analysts, while its stock is currently trading around $21.69 with a 12-month high of $25.90.
• Capital Southwest announced a $0.06 quarterly dividend with a payout ratio of 140.61%, to be paid to shareholders on December 31st.

Capital Southwest Corporation (NASDAQ:CSWC - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the six research firms that are covering the firm, 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 target among brokers that have covered the stock in the last year is $24.30.

Several brokerages have recently commented on CSWC. Citizens Jmp upgraded Capital Southwest from a "market perform" rating to an "outperform" rating and set a $25.00 price target on the stock in a research note on Tuesday, June 24th. Citigroup upgraded Capital Southwest to an "outperform" rating in a research note on Tuesday, June 24th. B. Riley raised their price target on Capital Southwest from $23.50 to $24.00 and gave the company a "buy" rating in a research note on Friday, August 8th. JMP Securities upgraded Capital Southwest from a "market perform" rating to a "market outperform" rating and set a $25.00 price target on the stock in a research note on Tuesday, June 24th. Finally, UBS Group lifted their target price on Capital Southwest from $21.00 to $22.50 and gave the company a "neutral" rating in a research note on Wednesday, July 16th.

Capital Southwest Stock Performance

CSWC stock opened at $21.69 on Thursday. The company has a quick ratio of 0.19, a current ratio of 0.19 and a debt-to-equity ratio of 0.53. The business's fifty day simple moving average is $22.69 and its two-hundred day simple moving average is $21.69. Capital Southwest has a twelve month low of $17.46 and a twelve month high of $25.90. The firm has a market cap of $1.21 billion, a price-to-earnings ratio of 13.15 and a beta of 0.96.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last released its earnings results on Wednesday, August 6th. The asset manager reported $0.59 earnings per share for the quarter, hitting analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $54.36 million. During the same quarter last year, the firm posted $0.69 earnings per share. Analysts predict that Capital Southwest will post 2.54 earnings per share for the current year.

Capital Southwest Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, December 31st. Shareholders of record on Monday, December 15th will be paid a $0.06 dividend. This represents a $0.24 annualized dividend and a yield of 1.1%. The ex-dividend date is Monday, December 15th. Capital Southwest's payout ratio is 140.61%.

Hedge Funds Weigh In On Capital Southwest

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Sumitomo Mitsui Trust Group Inc. grew its stake in Capital Southwest by 30.4% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 134,178 shares of the asset manager's stock valued at $2,995,000 after purchasing an additional 31,299 shares during the last quarter. Janney Montgomery Scott LLC acquired a new stake in Capital Southwest in the first quarter worth about $259,000. Bank of America Corp DE boosted its holdings in Capital Southwest by 135.3% in the fourth quarter. Bank of America Corp DE now owns 17,710 shares of the asset manager's stock worth $386,000 after acquiring an additional 10,182 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its holdings in Capital Southwest by 28.7% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 14,000 shares of the asset manager's stock worth $313,000 after acquiring an additional 3,118 shares in the last quarter. Finally, Raymond James Financial Inc. boosted its holdings in Capital Southwest by 54.3% in the first quarter. Raymond James Financial Inc. now owns 300,600 shares of the asset manager's stock worth $6,709,000 after acquiring an additional 105,845 shares in the last quarter. Hedge funds and other institutional investors own 23.42% of the company's stock.

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.

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