Capital Southwest Corporation (NASDAQ:CSWC) Shares Bought by Melia Wealth LLC

Key Points

• Melia Wealth LLC increased its holdings in Capital Southwest Corporation by 5.2%, making it the firm's 10th largest position, with a total of 422,308 shares valued at approximately $9.4 million.
• Capital Southwest reported earnings per share of $0.54 for the last quarter, falling short of the consensus estimate of $0.62, while revenue was also below expectations.
• The company recently declared a monthly dividend of $0.1934 per share, resulting in a substantial annualized yield of 9.95% and a payout ratio of 156.76%.

Melia Wealth LLC raised its position in Capital Southwest Corporation (NASDAQ:CSWC - Free Report) by 5.2% during the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 422,308 shares of the asset manager's stock after purchasing an additional 20,727 shares during the period. Capital Southwest comprises approximately 4.9% of Melia Wealth LLC's portfolio, making the stock its 10th biggest holding. Melia Wealth LLC owned 0.83% of Capital Southwest worth $9,426,000 at the end of the most recent quarter.

Other large investors also recently bought and sold shares of the company. Ameriflex Group Inc. acquired a new stake in shares of Capital Southwest during the fourth quarter valued at $33,000. Quarry LP boosted its stake in shares of Capital Southwest by 52.5% during the fourth quarter. Quarry LP now owns 2,126 shares of the asset manager's stock valued at $46,000 after acquiring an additional 732 shares during the last quarter. Nomura Asset Management Co. Ltd. boosted its stake in shares of Capital Southwest by 243.2% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 2,217 shares of the asset manager's stock valued at $48,000 after acquiring an additional 1,571 shares during the last quarter. Garde Capital Inc. acquired a new stake in shares of Capital Southwest during the first quarter valued at $54,000. Finally, Capital Analysts LLC boosted its stake in shares of Capital Southwest by 35.6% during the fourth quarter. Capital Analysts LLC now owns 2,550 shares of the asset manager's stock valued at $56,000 after acquiring an additional 669 shares during the last quarter. Institutional investors and hedge funds own 23.42% of the company's stock.

Analysts Set New Price Targets

Several equities analysts recently weighed in on CSWC shares. UBS Group increased their target price on Capital Southwest from $21.00 to $22.50 and gave the stock a "neutral" rating in a research report on Wednesday, July 16th. JMP Securities upgraded 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. Citigroup upgraded Capital Southwest to an "outperform" rating in a research report on Tuesday, June 24th. B. Riley raised Capital Southwest to a "strong-buy" rating in a report on Monday, June 16th. Finally, Wall Street Zen raised Capital Southwest from a "sell" rating to a "hold" rating in a report on Saturday, April 19th. Two research analysts have rated the stock with a hold rating, four have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $24.00.

Capital Southwest Price Performance

Shares of CSWC stock traded down $0.12 during mid-day trading on Thursday, hitting $22.74. 293,559 shares of the stock traded hands, compared to its average volume of 560,700. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.18 and a current ratio of 0.18. The firm has a market cap of $1.22 billion, a price-to-earnings ratio of 15.36 and a beta of 0.95. The company's 50-day simple moving average is $21.90 and its 200-day simple moving average is $21.72. Capital Southwest Corporation has a twelve month low of $17.46 and a twelve month high of $26.00.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last issued its earnings results on Wednesday, May 14th. The asset manager reported $0.54 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.62 by ($0.08). Capital Southwest had a return on equity of 14.40% and a net margin of 34.51%. The company had revenue of $52.34 million during the quarter, compared to analyst estimates of $52.83 million. During the same quarter in the previous year, the firm earned $0.68 earnings per share. As a group, equities research analysts expect that Capital Southwest Corporation will post 2.54 earnings per share for the current year.

Capital Southwest Dividend Announcement

The company also recently disclosed a monthly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be given a dividend of $0.1934 per share. The ex-dividend date is Monday, September 15th. This represents a $2.32 dividend on an annualized basis and a yield of 10.21%. Capital Southwest's payout ratio is 156.76%.

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.