Capital Southwest Corporation $CSWC Shares Acquired by Sumitomo Mitsui Trust Group Inc.

Key Points

• Sumitomo Mitsui Trust Group boosted its stake in Capital Southwest by 29.4% to 284,778 shares—about a 0.50% ownership position worth $6.31 million at quarter end.
• The company declared a monthly dividend of $0.1934 (ex-dividend June 15), implying a 9.6% yield while carrying a 128.18% payout ratio, signaling a high yield but stretched distribution levels.
• Analysts hold a consensus rating of "Moderate Buy" with a $23.42 target after several upgrades, although the stock was trading around $24.30, slightly above the consensus target.

Sumitomo Mitsui Trust Group Inc. increased its stake in shares of Capital Southwest Corporation (NASDAQ:CSWC - Free Report) by 29.4% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 284,778 shares of the asset manager's stock after buying an additional 64,706 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned about 0.50% of Capital Southwest worth $6,308,000 at the end of the most recent quarter.

Several other institutional investors have also recently added to or reduced their stakes in the stock. Triumph Capital Management purchased a new stake in Capital Southwest during the 3rd quarter valued at approximately $28,000. Tower Research Capital LLC TRC grew its stake in shares of Capital Southwest by 13,307.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,877 shares of the asset manager's stock valued at $41,000 after purchasing an additional 1,863 shares during the last quarter. State of Alaska Department of Revenue purchased a new position in shares of Capital Southwest in the 3rd quarter valued at approximately $48,000. Chilton Capital Management LLC acquired a new position in shares of Capital Southwest in the third quarter valued at approximately $77,000. Finally, Farther Finance Advisors LLC increased its holdings in shares of Capital Southwest by 42.6% in the third quarter. Farther Finance Advisors LLC now owns 5,275 shares of the asset manager's stock valued at $115,000 after purchasing an additional 1,577 shares during the period. Institutional investors and hedge funds own 23.42% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Zacks Research raised Capital Southwest from a "strong sell" rating to a "hold" rating in a report on Monday, January 5th. Weiss Ratings raised shares of Capital Southwest from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, January 28th. Six investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $23.42.

Capital Southwest Trading Up 2.0%

NASDAQ CSWC opened at $24.30 on Friday. The company has a quick ratio of 0.15, a current ratio of 0.15 and a debt-to-equity ratio of 0.51. The stock has a market capitalization of $1.46 billion, a P/E ratio of 13.43 and a beta of 0.72. Capital Southwest Corporation has a 52-week low of $19.07 and a 52-week high of $24.42. The firm has a 50-day moving average price of $22.50 and a 200 day moving average price of $21.98.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last announced its quarterly earnings data on Monday, February 2nd. The asset manager reported $0.64 earnings per share for the quarter, meeting analysts' consensus estimates of $0.64. Capital Southwest had a return on equity of 13.76% and a net margin of 45.46%.The company had revenue of $61.45 million for the quarter, compared to analyst estimates of $57.37 million. During the same quarter in the previous year, the company earned $0.63 EPS. Equities research analysts expect that Capital Southwest Corporation will post 2.54 EPS for the current year.

Capital Southwest Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be paid a $0.1934 dividend. The ex-dividend date is Monday, June 15th. This represents a c) dividend on an annualized basis and a dividend yield of 9.6%. Capital Southwest's payout ratio is 128.18%.

Capital Southwest Company Profile

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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