FJ Capital Management LLC Takes $895,000 Position in Capital Southwest Corporation $CSWC

Key Points

• FJ Capital Management LLC has acquired 40,081 shares of Capital Southwest Corporation valued at approximately $895,000, increasing its stake to about 0.08% of the company.
• Capital Southwest recently declared a monthly dividend of $0.1934, which results in an annualized yield of 10.1%, despite a high dividend payout ratio of 140.61%.
• The company's stock has a current price of $22.96, with a market cap of $1.28 billion, and analysts have an average price target of $24.30, classifying the stock as a "Moderate Buy."

FJ Capital Management LLC purchased a new position in shares of Capital Southwest Corporation (NASDAQ:CSWC - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 40,081 shares of the asset manager's stock, valued at approximately $895,000. FJ Capital Management LLC owned 0.08% of Capital Southwest at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of CSWC. Northern Trust Corp grew its holdings in shares of Capital Southwest by 20.8% during the 4th quarter. Northern Trust Corp now owns 29,382 shares of the asset manager's stock worth $641,000 after purchasing an additional 5,055 shares during the period. Schonfeld Strategic Advisors LLC acquired a new position in Capital Southwest during the 4th quarter worth about $2,248,000. Jane Street Group LLC acquired a new position in Capital Southwest during the 4th quarter worth about $475,000. Ameriprise Financial Inc. lifted its stake in Capital Southwest by 8.0% during the 4th quarter. Ameriprise Financial Inc. now owns 91,237 shares of the asset manager's stock worth $1,991,000 after acquiring an additional 6,781 shares in the last quarter. Finally, Benjamin Edwards Inc. lifted its stake in Capital Southwest by 2.7% during the 4th quarter. Benjamin Edwards Inc. now owns 82,375 shares of the asset manager's stock worth $1,797,000 after acquiring an additional 2,174 shares in the last quarter. 23.42% of the stock is currently owned by hedge funds and other institutional investors.

Capital Southwest Stock Performance

Shares of CSWC stock traded down $0.04 during midday trading on Friday, hitting $22.96. The company had a trading volume of 363,358 shares, compared to its average volume of 586,249. The company's 50 day simple moving average is $22.80 and its 200 day simple moving average is $21.72. Capital Southwest Corporation has a 52-week low of $17.46 and a 52-week high of $25.90. The stock has a market cap of $1.28 billion, a price-to-earnings ratio of 13.92 and a beta of 0.96. The company has a debt-to-equity ratio of 0.53, a current ratio of 0.19 and a quick ratio of 0.19.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last announced its earnings results on Wednesday, August 6th. The asset manager reported $0.59 earnings per share for the quarter, meeting the consensus estimate of $0.59. Capital Southwest had a return on equity of 14.17% and a net margin of 39.95%.The company had revenue of $55.95 million for the quarter, compared to the consensus estimate of $54.36 million. During the same period last year, the business posted $0.69 EPS. Research analysts anticipate that Capital Southwest Corporation will post 2.54 earnings per share for the current fiscal year.

Capital Southwest Dividend Announcement

The firm also recently declared a monthly dividend, which was paid on Thursday, July 31st. Stockholders of record on Tuesday, July 15th were issued a $0.1934 dividend. This represents a c) annualized dividend and a dividend yield of 10.1%. The ex-dividend date of this dividend was Tuesday, July 15th. Capital Southwest's dividend payout ratio (DPR) is currently 140.61%.

Wall Street Analyst Weigh In

CSWC has been the topic of several research reports. Citizens Jmp raised Capital Southwest from a "market perform" rating to an "outperform" rating and set a $25.00 target price on the stock in a research note on Tuesday, June 24th. Raymond James Financial increased their price target on Capital Southwest from $23.00 to $25.00 and gave the company an "outperform" rating in a research report on Friday, August 8th. B. Riley increased their price objective on Capital Southwest from $23.50 to $24.00 and gave the company a "buy" rating in a report on Friday, August 8th. Citigroup upgraded Capital Southwest to an "outperform" rating in a research note on Tuesday, June 24th. Finally, JMP Securities upgraded Capital Southwest from a "market perform" rating to a "market outperform" rating and set a $25.00 price target on the stock in a research note on Tuesday, June 24th. Five research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $24.30.

About Capital Southwest

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.