Capital Southwest (NASDAQ:CSWC) Sets New 1-Year High - Time to Buy?

Key Points

• Capital Southwest shares reached a new 52-week high of $24.45, trading above their previous close of $23.94. Analysts maintain a generally positive outlook, with an average “Moderate Buy” rating and a $23.20 target price.
• The company declared a monthly dividend of $0.1934 per share, implying a 9.5% annualized yield; however, its dividend payout ratio is elevated at 122.11%.
• Institutional ownership stands at 23.42%, with notable first- and second-quarter buying from Goldman Sachs, Royal Bank of Canada, Invesco and other investors.

Capital Southwest Corporation (NASDAQ:CSWC - Get Free Report) shares hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $24.45 and last traded at $24.1950, with a volume of 69147 shares trading hands. The stock had previously closed at $23.94.

Analyst Ratings Changes

CSWC has been the topic of a number of recent research reports. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Capital Southwest in a research report on Thursday, June 18th. B. Riley Financial boosted their price objective on Capital Southwest from $24.00 to $24.50 and gave the company a "buy" rating in a research note on Friday, May 15th. Four equities research 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, the company has an average rating of "Moderate Buy" and an average target price of $23.20.

Capital Southwest Stock Performance

The company's 50-day moving average price is $23.52 and its two-hundred day moving average price is $23.14. The company has a debt-to-equity ratio of 0.56, a quick ratio of 0.11 and a current ratio of 0.11. The stock has a market cap of $1.51 billion, a PE ratio of 12.81 and a beta of 0.70.

Capital Southwest Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be issued a dividend of $0.1934 per share. This represents a c) dividend on an annualized basis and a yield of 9.5%. The ex-dividend date is Tuesday, September 15th. Capital Southwest's dividend payout ratio is currently 122.11%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Royal Bank of Canada grew its position in Capital Southwest by 13.4% during the 1st quarter. Royal Bank of Canada now owns 69,139 shares of the asset manager's stock valued at $1,544,000 after purchasing an additional 8,188 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in Capital Southwest by 246.5% in the first quarter. Goldman Sachs Group Inc. now owns 257,672 shares of the asset manager's stock worth $5,751,000 after purchasing an additional 183,313 shares during the last quarter. Caxton Associates LLP purchased a new stake in Capital Southwest in the first quarter worth approximately $318,000. Creative Planning bought a new stake in Capital Southwest in the 2nd quarter worth approximately $201,000. Finally, Invesco Ltd. grew its position in Capital Southwest by 21.8% in the 2nd quarter. Invesco Ltd. now owns 34,003 shares of the asset manager's stock worth $749,000 after purchasing an additional 6,094 shares during the period. 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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