Capital Southwest (NASDAQ:CSWC) Lowered to Strong Sell Rating by Zacks Research

Key Points

• Capital Southwest has been downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Monday.
• Despite the downgrade, the stock has received mixed evaluations from other analysts, with five maintaining a "buy" rating and a consensus target price of $24.10.
• Capital Southwest reported earnings of $0.59 per share for the last quarter, matching analysts' expectations and demonstrating a 39.95% net margin.

Capital Southwest (NASDAQ:CSWC - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

CSWC has been the subject of a number of other reports. Citigroup raised Capital Southwest to an "outperform" rating in a research note on Tuesday, June 24th. B. Riley increased their target price on Capital Southwest from $23.50 to $24.00 and gave the stock a "buy" rating in a research note on Friday, August 8th. JMP Securities raised Capital Southwest from a "market perform" rating to a "market outperform" rating and set a $25.00 target price for the company in a research note on Tuesday, June 24th. Weiss Ratings reissued a "buy (b-)" rating on shares of Capital Southwest in a research note on Wednesday, October 8th. Finally, UBS Group reduced their price target on Capital Southwest from $23.00 to $21.50 and set a "neutral" rating for the company in a research report on Tuesday. Five investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $24.10.

Capital Southwest Stock Performance

Capital Southwest stock opened at $20.19 on Monday. The company has a current ratio of 0.19, a quick ratio of 0.19 and a debt-to-equity ratio of 0.53. Capital Southwest has a 1 year low of $17.46 and a 1 year high of $25.90. The company has a market cap of $1.12 billion, a PE ratio of 12.24 and a beta of 0.95. The company's 50-day moving average is $22.31 and its two-hundred day moving average is $21.59.

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 (EPS) for the quarter, meeting analysts' consensus estimates of $0.59. The company had revenue of $55.95 million for the quarter, compared to the consensus estimate of $54.36 million. Capital Southwest had a net margin of 39.95% and a return on equity of 14.17%. During the same period in the prior year, the company posted $0.69 EPS. Equities analysts anticipate that Capital Southwest will post 2.54 earnings per share for the current year.

Institutional Trading of Capital Southwest

A number of hedge funds have recently made changes to their positions in the company. Confluence Investment Management LLC boosted its stake in shares of Capital Southwest by 0.6% during the second quarter. Confluence Investment Management LLC now owns 102,107 shares of the asset manager's stock valued at $2,250,000 after purchasing an additional 585 shares in the last quarter. CWM LLC lifted its stake in shares of Capital Southwest by 26.6% in the second quarter. CWM LLC now owns 2,930 shares of the asset manager's stock worth $65,000 after acquiring an additional 615 shares during the period. Union Bancaire Privee UBP SA lifted its stake in shares of Capital Southwest by 5.1% in the second quarter. Union Bancaire Privee UBP SA now owns 14,349 shares of the asset manager's stock worth $316,000 after acquiring an additional 694 shares during the period. Nomura Asset Management Co. Ltd. lifted its stake in shares of Capital Southwest by 58.5% in the second quarter. Nomura Asset Management Co. Ltd. now owns 2,135 shares of the asset manager's stock worth $47,000 after acquiring an additional 788 shares during the period. Finally, Apollon Wealth Management LLC lifted its stake in shares of Capital Southwest by 4.0% in the first quarter. Apollon Wealth Management LLC now owns 21,498 shares of the asset manager's stock worth $480,000 after acquiring an additional 817 shares during the period. 23.42% of the stock is owned by institutional investors and hedge funds.

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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