Capital Southwest (NASDAQ:CSWC) Hits New 12-Month High - What's Next?

Key Points

• Shares of Capital Southwest hit a new 52-week high (intraday high $24.43, last $24.09) and received an upgrade from Weiss Ratings to a "buy," though the Street consensus remains a Moderate Buy with an average price target of $23.42—below the current level.
• Q4 results showed EPS of $0.64 (in line with estimates) and revenue of $61.45M (above estimates), and the company announced a monthly dividend of $0.1934 (ex-dividend June 15) implying a 9.6% yield

Shares of Capital Southwest Corporation (NASDAQ:CSWC - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $24.43 and last traded at $24.09, with a volume of 38572 shares. The stock had previously closed at $24.30.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings upgraded Capital Southwest from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, January 28th. Six research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $23.42.

Capital Southwest Stock Performance

The company has a debt-to-equity ratio of 0.51, a current ratio of 0.15 and a quick ratio of 0.15. The stock has a 50-day moving average price of $22.65 and a 200-day moving average price of $22.19. The firm has a market capitalization of $1.45 billion, a PE ratio of 13.31 and a beta of 0.71.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last issued its earnings results on Monday, February 2nd. The asset manager reported $0.64 EPS for the quarter, meeting analysts' consensus estimates of $0.64. The company had revenue of $61.45 million during the quarter, compared to the consensus estimate of $57.37 million. Capital Southwest had a return on equity of 13.76% and a net margin of 45.46%.During the same period in the previous year, the firm posted $0.63 earnings per share. On average, research analysts expect that Capital Southwest Corporation will post 2.37 EPS for the current fiscal year.

Capital Southwest Announces Dividend

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

Institutional Trading of Capital Southwest

A number of hedge funds have recently modified their holdings of the business. Cozad Asset Management Inc. grew its holdings in Capital Southwest by 1.0% during the 3rd quarter. Cozad Asset Management Inc. now owns 49,676 shares of the asset manager's stock worth $1,086,000 after acquiring an additional 515 shares during the period. Leonteq Securities AG lifted its position in Capital Southwest by 11.1% in the 1st quarter. Leonteq Securities AG now owns 7,000 shares of the asset manager's stock valued at $155,000 after acquiring an additional 700 shares in the last quarter. Dearborn Partners LLC lifted its position in Capital Southwest by 4.5% in the 4th quarter. Dearborn Partners LLC now owns 19,999 shares of the asset manager's stock valued at $443,000 after acquiring an additional 864 shares in the last quarter. Vident Advisory LLC lifted its position in Capital Southwest by 6.1% in the 2nd quarter. Vident Advisory LLC now owns 19,087 shares of the asset manager's stock valued at $421,000 after acquiring an additional 1,090 shares in the last quarter. Finally, Triumph Capital Management bought a new stake in Capital Southwest in the 3rd quarter valued at $28,000. Hedge funds and other institutional investors own 23.42% of the company's stock.

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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