86,011 Shares in Capital Southwest Corporation $CSWC Bought by Bank of America Corp DE

Key Points

• Bank of America purchased 86,011 shares of Capital Southwest in the second quarter, valued at approximately $2.04 million and representing about 0.13% of the company. Institutional investors collectively own 23.42% of CSWC.
• Capital Southwest reported quarterly earnings of $0.58 per share, exceeding analyst expectations of $0.56, while revenue of $61.05 million was slightly below estimates.
• The company declared a monthly dividend of $0.1934 per share, equivalent to an annualized $2.32 payout and a 10.0% yield; analysts maintain a “Moderate Buy” consensus with a $23.60 price target.

Bank of America Corp DE purchased a new position in Capital Southwest Corporation (NASDAQ:CSWC - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 86,011 shares of the asset manager's stock, valued at approximately $2,044,000. Bank of America Corp DE owned approximately 0.13% of Capital Southwest as of its most recent SEC filing.

Other large investors have also modified their holdings of the company. Sound Income Strategies LLC increased its stake in shares of Capital Southwest by 2.0% during the first quarter. Sound Income Strategies LLC now owns 903,329 shares of the asset manager's stock worth $19,810,000 after buying an additional 17,362 shares during the period. Empowered Funds LLC acquired a new position in shares of Capital Southwest during the first quarter worth $13,694,000. Empirical Finance LLC acquired a new position in shares of Capital Southwest during the first quarter worth $13,689,000. Legal & General Group Plc purchased a new position in Capital Southwest in the second quarter valued at $11,886,000. Finally, Columbus Macro LLC increased its holdings in Capital Southwest by 3.5% in the first quarter. Columbus Macro LLC now owns 357,781 shares of the asset manager's stock valued at $7,914,000 after buying an additional 12,261 shares during the last quarter. Hedge funds and other institutional investors own 23.42% of the company's stock.

Capital Southwest Price Performance

Shares of CSWC opened at $23.13 on Thursday. Capital Southwest Corporation has a fifty-two week low of $19.37 and a fifty-two week high of $25.75. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.17 and a current ratio of 0.17. The firm has a 50-day simple moving average of $24.28 and a 200-day simple moving average of $23.58. The company has a market capitalization of $1.47 billion, a price-to-earnings ratio of 12.78 and a beta of 0.70.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last issued its quarterly earnings results on Monday, August 3rd. The asset manager reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.02. The firm had revenue of $61.05 million during the quarter, compared to the consensus estimate of $61.22 million. Capital Southwest had a return on equity of 13.88% and a net margin of 46.68%.During the same period last year, the company earned $0.61 earnings per share. On average, equities research analysts anticipate that Capital Southwest Corporation will post 2.27 earnings per share for the current year.

Capital Southwest Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on CSWC shares. Citigroup reissued a "market outperform" rating on shares of Capital Southwest in a research report on Wednesday, August 5th. B. Riley Financial upped their price target on Capital Southwest from $24.50 to $25.50 and gave the company a "buy" rating in a report on Wednesday, August 5th. 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 note on Wednesday, August 5th. Finally, Weiss Ratings raised shares of Capital Southwest from a "buy (b-)" rating to a "buy (b)" rating in a report on Monday. Six research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Capital Southwest currently has an average rating of "Moderate Buy" and a consensus target price of $23.60.

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 invests primarily in privately held companies and seeks to support their growth, acquisitions, recapitalizations and other strategic initiatives.

Capital Southwest's investment activities generally include first-lien and second-lien loans, unitranche financing, subordinated debt and, in some cases, equity investments.

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