Capital Southwest (NASDAQ:CSWC) Issues Quarterly Earnings Results

Key Points

• Capital Southwest reported quarterly EPS of $0.39, missing the $0.56 analyst consensus by $0.17. Revenue was $61.05 million, roughly in line with the $61.22 million estimate.
• CSWC shares rose to $23.94, near their 52-week high, while analysts maintained a “Moderate Buy” consensus with an average price target of $23.20.
• The company declared a monthly dividend of $0.1934 per share, equivalent to an approximately 9.7% annualized yield; its payout ratio was 122.11%.

Capital Southwest (NASDAQ:CSWC - Get Free Report) posted its earnings results on Monday. The asset manager reported $0.39 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.56 by ($0.17), FiscalAI reports. Capital Southwest had a net margin of 48.68% and a return on equity of 14.00%. The company had revenue of $61.05 million during the quarter, compared to the consensus estimate of $61.22 million.

Capital Southwest Stock Performance

CSWC stock traded up $0.35 during trading on Monday, reaching $23.94. 667,941 shares of the company's stock were exchanged, compared to its average volume of 662,447. Capital Southwest has a 1-year low of $19.37 and a 1-year high of $24.43. The firm has a market cap of $1.49 billion, a PE ratio of 12.60 and a beta of 0.69. The company's fifty day moving average price is $23.49 and its 200-day moving average price is $23.14. The company has a quick ratio of 0.11, a current ratio of 0.11 and a debt-to-equity ratio of 0.56.

Capital Southwest Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be given a dividend of $0.1934 per share. This represents a c) dividend on an annualized basis and a yield of 9.7%. The ex-dividend date is Tuesday, September 15th. Capital Southwest's payout ratio is 122.11%.

Analyst Upgrades and Downgrades

CSWC has been the topic of a number of analyst reports. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Capital Southwest in a report on Thursday, June 18th. B. Riley Financial raised their price target on shares of Capital Southwest from $24.00 to $24.50 and gave the company a "buy" rating in a research note on Friday, May 15th. Four analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Capital Southwest currently has an average rating of "Moderate Buy" and an average price target of $23.20.

Institutional Investors Weigh In On Capital Southwest

A number of hedge funds and other institutional investors have recently modified their holdings of CSWC. Newbridge Financial Services Group Inc. grew its position in Capital Southwest by 1,110.3% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 38,439 shares of the asset manager's stock valued at $840,000 after buying an additional 35,263 shares in the last quarter. Aquatic Capital Management LLC raised its position in shares of Capital Southwest by 153.1% during the 3rd quarter. Aquatic Capital Management LLC now owns 33,741 shares of the asset manager's stock worth $738,000 after buying an additional 20,412 shares in the last quarter. Verition Fund Management LLC raised its position in shares of Capital Southwest by 4.6% during the 3rd quarter. Verition Fund Management LLC now owns 32,962 shares of the asset manager's stock worth $721,000 after buying an additional 1,462 shares in the last quarter. Mariner LLC lifted its stake in shares of Capital Southwest by 8.9% in the 3rd quarter. Mariner LLC now owns 30,835 shares of the asset manager's stock worth $674,000 after acquiring an additional 2,521 shares during the period. Finally, Guggenheim Capital LLC lifted its stake in shares of Capital Southwest by 7.5% in the 4th quarter. Guggenheim Capital LLC now owns 27,461 shares of the asset manager's stock worth $608,000 after acquiring an additional 1,914 shares during the period. 23.42% of the stock is currently owned by institutional investors.

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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