FJ Capital Management LLC Invests $895,000 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 bought a new stake in Capital Southwest Corporation (NASDAQ:CSWC - Free Report) in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 40,081 shares of the asset manager's stock, valued at approximately $895,000. FJ Capital Management LLC owned 0.08% of Capital Southwest as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also recently added to or reduced their stakes in CSWC. Northern Trust Corp lifted its position in shares of Capital Southwest by 20.8% in the 4th quarter. Northern Trust Corp now owns 29,382 shares of the asset manager's stock worth $641,000 after buying an additional 5,055 shares during the last quarter. Schonfeld Strategic Advisors LLC acquired a new stake in shares of Capital Southwest during the fourth quarter worth approximately $2,248,000. Jane Street Group LLC bought a new position in shares of Capital Southwest during the 4th quarter valued at $475,000. Ameriprise Financial Inc. lifted its stake in shares of Capital Southwest by 8.0% in the fourth quarter. Ameriprise Financial Inc. now owns 91,237 shares of the asset manager's stock worth $1,991,000 after buying an additional 6,781 shares during the last quarter. Finally, Benjamin Edwards Inc. lifted its stake in shares of Capital Southwest by 2.7% in the fourth quarter. Benjamin Edwards Inc. now owns 82,375 shares of the asset manager's stock worth $1,797,000 after buying an additional 2,174 shares during the last quarter. Institutional investors and hedge funds own 23.42% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on CSWC. Raymond James Financial raised their price target on Capital Southwest from $23.00 to $25.00 and gave the company an "outperform" rating in a report on Friday, August 8th. JMP Securities upgraded shares of Capital Southwest from a "market perform" rating to a "market outperform" rating and set a $25.00 price objective for the company in a research note on Tuesday, June 24th. UBS Group increased their price target on shares of Capital Southwest from $21.00 to $22.50 and gave the company a "neutral" rating in a report on Wednesday, July 16th. Citizens Jmp raised shares of Capital Southwest from a "market perform" rating to an "outperform" rating and set a $25.00 price target for the company in a report on Tuesday, June 24th. Finally, Citigroup raised Capital Southwest to an "outperform" rating in a research note on Tuesday, June 24th. Five equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, Capital Southwest has an average rating of "Moderate Buy" and a consensus price target of $24.30.

Capital Southwest Stock Performance

Shares of Capital Southwest stock traded up $0.16 during mid-day trading on Thursday, hitting $23.00. 429,787 shares of the stock were exchanged, compared to its average volume of 566,763. The company has a 50-day simple moving average of $22.75 and a 200 day simple moving average of $21.73. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.19 and a current ratio of 0.19. The company has a market capitalization of $1.28 billion, a P/E ratio of 13.94 and a beta of 0.96. Capital Southwest Corporation has a 12 month low of $17.46 and a 12 month high of $25.90.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The asset manager reported $0.59 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates 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 analyst estimates of $54.36 million. During the same period in the previous year, the company posted $0.69 EPS. Sell-side analysts anticipate that Capital Southwest Corporation will post 2.54 earnings per share for the current fiscal year.

Capital Southwest Dividend Announcement

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

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.