Capital Southwest Corporation (NASDAQ:CSWC) Stock Has Average Price Target of $25.17

Key Points

• Analyst sentiment is moderately positive: Four of six covering brokerages rate Capital Southwest a buy, while two recommend holding; the average 12-month price target is $25.17.
• In its latest quarter, the company reported earnings of $0.56 per share, a penny below estimates, but revenue of $67.16 million exceeded expectations of $65.61 million.
• Capital Southwest announced a monthly dividend of $0.1934 per share, equivalent to $2.32 annually and a stated 10% yield. Its payout ratio is 128.18%.

Shares of Capital Southwest Corporation (NASDAQ:CSWC - Get Free Report) have earned an average rating of "Moderate Buy" from the six brokerages that are covering the firm, MarketBeat.com reports. Two investment analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $25.17.

Several analysts have commented on CSWC shares. Citizens Jmp increased their price target on shares of Capital Southwest from $25.00 to $26.00 and gave the company a "market outperform" rating in a research report on Wednesday, August 5th. B. Riley Financial lifted their price objective on shares of Capital Southwest from $24.50 to $25.50 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. UBS Group boosted their price objective on shares of Capital Southwest from $23.50 to $24.00 and gave the stock a "neutral" rating in a research note on Friday, October 9th. Weiss Ratings cut shares of Capital Southwest from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, October 13th. Finally, Citigroup restated a "market outperform" rating on shares of Capital Southwest in a research note on Wednesday, August 5th.

Capital Southwest Trading Down 2.2%

CSWC opened at $23.27 on Friday. The firm has a market cap of $1.55 billion, a price-to-earnings ratio of 13.69 and a beta of 0.67. The company has a current ratio of 0.11, a quick ratio of 0.17 and a debt-to-equity ratio of 0.43. Capital Southwest has a 12 month low of $20.11 and a 12 month high of $25.75. The stock has a fifty day moving average price of $23.58 and a 200-day moving average price of $23.40.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last issued its quarterly earnings data on Monday, November 2nd. The asset manager reported $0.56 earnings per share for the quarter, missing analysts' consensus estimates of $0.57 by ($0.01). Capital Southwest had a return on equity of 13.76% and a net margin of 43.06%. The company had revenue of $67.16 million for the quarter, compared to analysts' expectations of $65.61 million. As a group, equities research analysts anticipate that Capital Southwest will post 2.27 earnings per share for the current fiscal year.

Capital Southwest Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 15th will be paid a dividend of $0.1934 per share. This represents a $2.32 annualized dividend and a yield of 10.0%. The ex-dividend date is Tuesday, December 15th. Capital Southwest's payout ratio is 128.18%.

Insiders Place Their Bets

In other Capital Southwest news, Director William Thomas, III bought 2,170 shares of Capital Southwest stock in a transaction that occurred on Thursday, October 1st. The shares were bought at an average cost of $23.04 per share, with a total value of $49,996.80. Following the transaction, the director directly owned 22,842 shares of the company's stock, valued at approximately $526,279.68. This represents a 10.50% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 2.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Capital Southwest

Large investors have recently modified their holdings of the business. Allied Private Wealth LLC acquired a new position in shares of Capital Southwest in the 2nd quarter valued at $37,000. Burk Holdings LLC purchased a new position in Capital Southwest in the 2nd quarter worth $73,000. Northwestern Mutual Wealth Management Co. purchased a new position in Capital Southwest in the 2nd quarter worth $95,000. PNC Financial Services Group Inc. lifted its position in Capital Southwest by 197.2% during the 1st quarter. PNC Financial Services Group Inc. now owns 4,654 shares of the asset manager's stock worth $103,000 after acquiring an additional 3,088 shares during the period. Finally, Allworth Financial LP acquired a new stake in Capital Southwest during the 2nd quarter worth about $155,000. Hedge funds and other institutional investors own 23.42% of the company's stock.

About Capital Southwest

Capital Southwest Corporation NASDAQ: CSWC is a business development company that provides financing to middle-market and lower-middle-market businesses in the United States. The company primarily invests in privately held companies that may require capital to support growth, acquisitions, recapitalizations, ownership transitions, or other strategic initiatives.

Its investment portfolio generally consists of senior secured loans, including first-lien and second-lien debt, as well as subordinated debt and equity investments.

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