Zuckerman Investment Group LLC Cuts Stake in Capital Southwest Corporation $CSWC

Key Points

• Zuckerman Investment Group LLC reduced its stake in Capital Southwest Corporation by 36.5%, now owning 427,020 shares valued at approximately $9.5 million.
• Several institutional investors, including Raymond James and Quantbot Technologies, have increased their holdings in Capital Southwest, indicating a growing interest in the company.
• Capital Southwest announced a monthly dividend of $0.1934 per share, representing an annualized yield of 10.4%, with a payout ratio of 140.61%.

Zuckerman Investment Group LLC reduced its position in shares of Capital Southwest Corporation (NASDAQ:CSWC - Free Report) by 36.5% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 427,020 shares of the asset manager's stock after selling 245,448 shares during the quarter. Zuckerman Investment Group LLC owned 0.84% of Capital Southwest worth $9,531,000 at the end of the most recent reporting period.

Several other large investors also recently modified their holdings of CSWC. JPMorgan Chase & Co. increased its position in Capital Southwest by 934.8% during the fourth quarter. JPMorgan Chase & Co. now owns 39,259 shares of the asset manager's stock worth $857,000 after acquiring an additional 35,465 shares during the period. Barclays PLC boosted its stake in shares of Capital Southwest by 1.8% in the 4th quarter. Barclays PLC now owns 77,436 shares of the asset manager's stock valued at $1,690,000 after purchasing an additional 1,353 shares in the last quarter. NewEdge Advisors LLC acquired a new stake in shares of Capital Southwest in the 4th quarter valued at approximately $417,000. Marshall Wace LLP boosted its stake in shares of Capital Southwest by 41.6% in the 4th quarter. Marshall Wace LLP now owns 102,485 shares of the asset manager's stock valued at $2,236,000 after purchasing an additional 30,124 shares in the last quarter. Finally, MML Investors Services LLC raised its holdings in Capital Southwest by 16.5% in the 4th quarter. MML Investors Services LLC now owns 119,721 shares of the asset manager's stock valued at $2,612,000 after buying an additional 16,991 shares during the last quarter. 23.42% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on CSWC shares. Citigroup upgraded shares of Capital Southwest to an "outperform" rating in a report on Tuesday, June 24th. Raymond James Financial lifted their price objective on shares of Capital Southwest from $23.00 to $25.00 and gave the company an "outperform" rating in a research note on Friday, August 8th. B. Riley lifted their price target on shares of Capital Southwest from $23.50 to $24.00 and gave the company a "buy" rating in a research report on Friday, August 8th. UBS Group lifted their price target on shares of Capital Southwest from $21.00 to $22.50 and gave the company a "neutral" rating in a research report on Wednesday, July 16th. Finally, Citizens Jmp raised shares of Capital Southwest from a "market perform" rating to an "outperform" rating and set a $25.00 price objective on the stock in a report on Tuesday, June 24th. Five analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, Capital Southwest presently has a consensus rating of "Moderate Buy" and a consensus target price of $24.30.

Capital Southwest Price Performance

Shares of CSWC traded up $0.10 during midday trading on Friday, hitting $22.96. 608,173 shares of the company traded hands, compared to its average volume of 605,867. The company has a debt-to-equity ratio of 0.53, a current ratio of 0.19 and a quick ratio of 0.19. The stock has a 50-day moving average of $22.66 and a 200-day moving average of $21.74. The firm has a market cap of $1.28 billion, a P/E ratio of 13.92 and a beta of 0.98. Capital Southwest Corporation has a one year low of $17.46 and a one year high of $25.90.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The asset manager reported $0.59 earnings per share for the quarter, hitting the consensus estimate of $0.59. The company had revenue of $55.95 million for the quarter, compared to analysts' expectations of $54.36 million. Capital Southwest had a net margin of 39.95% and a return on equity of 14.17%. During the same period in the prior year, the business earned $0.69 earnings per share. As a group, sell-side analysts predict that Capital Southwest Corporation will post 2.54 EPS for the current fiscal year.

Capital Southwest Dividend Announcement

The company also recently announced a monthly dividend, which was paid on Thursday, July 31st. Shareholders of record on Tuesday, July 15th were paid a $0.1934 dividend. The ex-dividend date of this dividend was Tuesday, July 15th. This represents a c) annualized dividend and a 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.