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

Key Points

• Capital Southwest Corporation has received a consensus recommendation of "Moderate Buy" from six ratings firms, with an average 12-month price target of $24.30.
• The company reported $0.59 EPS for the latest quarter, meeting expectations, and had a net margin of approximately 39.95%.
• Recently announced a monthly dividend of $0.1934 per share, yielding about 10.1%, with a dividend payout ratio of 140.61%.

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

Several equities research analysts have commented on the stock. UBS Group raised their price target on shares of Capital Southwest from $21.00 to $22.50 and gave the company a "neutral" rating in a research note on Wednesday, July 16th. Citizens Jmp upgraded shares of 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. JMP Securities upgraded shares of 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. B. Riley raised their price target on shares of Capital Southwest from $23.50 to $24.00 and gave the company a "buy" rating in a research note on Friday, August 8th. Finally, Raymond James Financial raised their price target on shares of Capital Southwest from $23.00 to $25.00 and gave the company an "outperform" rating in a research note on Friday, August 8th.

Capital Southwest Stock Performance

Shares of NASDAQ CSWC opened at $22.96 on Friday. 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 firm's 50-day moving average price is $22.80 and its two-hundred day moving average price is $21.71. Capital Southwest has a 52-week low of $17.46 and a 52-week high of $25.90. The stock has a market capitalization of $1.28 billion, a P/E ratio of 13.92 and a beta of 0.96.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The asset manager reported $0.59 EPS for the quarter, meeting the consensus estimate of $0.59. Capital Southwest had a net margin of 39.95% and a return on equity of 14.17%. The company had revenue of $55.95 million for the quarter, compared to analyst estimates of $54.36 million. During the same quarter last year, the business earned $0.69 earnings per share. As a group, sell-side analysts forecast that Capital Southwest will post 2.54 earnings per share for the current year.

Capital Southwest Dividend Announcement

The business also recently disclosed a monthly dividend, which was paid on Thursday, July 31st. Investors of record on Tuesday, July 15th were paid a dividend of $0.1934 per share. This represents a c) dividend on an annualized basis and a dividend yield of 10.1%. The ex-dividend date was Tuesday, July 15th. Capital Southwest's dividend payout ratio (DPR) is currently 140.61%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in CSWC. Kingstone Capital Partners Texas LLC acquired a new position in Capital Southwest in the second quarter worth approximately $311,170,000. Sanders Morris Harris LLC grew its position in Capital Southwest by 75.9% in the first quarter. Sanders Morris Harris LLC now owns 1,433,064 shares of the asset manager's stock worth $31,986,000 after buying an additional 618,480 shares during the last quarter. Columbus Macro LLC acquired a new position in Capital Southwest in the second quarter worth approximately $6,407,000. Cetera Investment Advisers grew its position in Capital Southwest by 402.8% in the second quarter. Cetera Investment Advisers now owns 361,722 shares of the asset manager's stock worth $7,972,000 after buying an additional 289,778 shares during the last quarter. Finally, Epiq Partners LLC acquired a new position in Capital Southwest in the first quarter worth approximately $5,701,000. Institutional investors and hedge funds 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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