Capital Southwest Corporation $CSWC Position Lessened by Royal Bank of Canada

Key Points

• Royal Bank of Canada cut its Capital Southwest position by 70.7% in the first quarter, selling 56,283 shares and retaining 23,273 shares valued at approximately $515,000.
• Other institutions made sizable investments, including new positions by Empowered Funds and Empirical Finance worth roughly $13.7 million each. Institutional investors and hedge funds collectively own 23.42% of CSWC.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $23.60, while CSWC recently traded at $25.21. The company reported quarterly EPS of $0.58, exceeding estimates of $0.56, though revenue slightly missed expectations.

Royal Bank of Canada lowered its position in Capital Southwest Corporation (NASDAQ:CSWC - Free Report) by 70.7% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 23,273 shares of the asset manager's stock after selling 56,283 shares during the quarter. Royal Bank of Canada's holdings in Capital Southwest were worth $515,000 at the end of the most recent quarter.

Several other hedge funds also recently bought and sold shares of the company. Empowered Funds LLC bought a new position in Capital Southwest during the first quarter valued at about $13,694,000. Empirical Finance LLC bought a new stake in shares of Capital Southwest during the 1st quarter worth about $13,689,000. Closed End Fund Advisors Inc. bought a new stake in shares of Capital Southwest during the 4th quarter worth about $2,519,000. Legal & General Group Plc increased its holdings in shares of Capital Southwest by 17.4% during the 4th quarter. Legal & General Group Plc now owns 389,580 shares of the asset manager's stock valued at $8,639,000 after acquiring an additional 57,679 shares during the last quarter. Finally, FJ Capital Management LLC acquired a new position in shares of Capital Southwest during the 4th quarter valued at about $2,053,000. 23.42% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms recently weighed in on CSWC. Weiss Ratings restated a "buy (b-)" rating on shares of Capital Southwest in a report on Thursday, June 18th. B. Riley Financial increased 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 lifted 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. Finally, Citigroup restated a "market outperform" rating on shares of Capital Southwest in a research note on Wednesday, August 5th. Six investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, Capital Southwest has an average rating of "Moderate Buy" and an average price target of $23.60.

Capital Southwest Stock Performance

NASDAQ CSWC opened at $25.21 on Wednesday. The company's fifty day moving average is $24.01 and its two-hundred day moving average is $23.32. The firm has a market capitalization of $1.61 billion, a price-to-earnings ratio of 13.93 and a beta of 0.69. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.17 and a quick ratio of 0.17. Capital Southwest Corporation has a 52-week low of $19.37 and a 52-week high of $25.37.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last released its earnings results on Monday, August 3rd. The asset manager reported $0.58 earnings per share for the quarter, topping analysts' consensus estimates of $0.56 by $0.02. The business had revenue of $61.05 million for 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 business earned $0.61 earnings per share. Equities research analysts forecast that Capital Southwest Corporation will post 2.27 EPS for the current year.

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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