GraniteShares Advisors LLC Purchases New Shares in Capital Southwest Corporation $CSWC

Key Points

• GraniteShares Advisors purchased 122,472 shares of Capital Southwest (~$2.71M), making the position 1.6% of its portfolio and leaving GraniteShares with a 0.21% stake; overall institutional ownership in CSWC is 23.42% with several other funds recently adding to their positions.
• Capital Southwest announced a monthly dividend of $0.1934 payable June 30 (record June 15), which implies a 9.7% yield but reflects a high payout ratio of 128.18%.
• Analysts give CSWC a consensus rating of “Moderate Buy” (six Buys, three Holds) with an average target of $23.42; the stock trades near $23.89, has a PE of 13.2, and last quarter reported $0.64 EPS (in line) with revenue above estimates.

GraniteShares Advisors LLC purchased a new stake in shares of Capital Southwest Corporation (NASDAQ:CSWC - Free Report) in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 122,472 shares of the asset manager's stock, valued at approximately $2,713,000. Capital Southwest makes up about 1.6% of GraniteShares Advisors LLC's investment portfolio, making the stock its 19th largest position. GraniteShares Advisors LLC owned 0.21% of Capital Southwest as of its most recent SEC filing.

Other institutional investors have also recently bought and sold shares of the company. Sumitomo Mitsui Trust Group Inc. raised its position in Capital Southwest by 29.4% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 284,778 shares of the asset manager's stock worth $6,308,000 after purchasing an additional 64,706 shares during the last quarter. Muzinich & Co. Inc. raised its position in Capital Southwest by 21.0% in the 3rd quarter. Muzinich & Co. Inc. now owns 273,265 shares of the asset manager's stock worth $5,974,000 after purchasing an additional 47,475 shares during the last quarter. Redmont Wealth Advisors LLC bought a new position in Capital Southwest in the 3rd quarter worth approximately $1,484,000. Van ECK Associates Corp raised its position in Capital Southwest by 8.2% in the 3rd quarter. Van ECK Associates Corp now owns 1,457,146 shares of the asset manager's stock worth $31,853,000 after purchasing an additional 109,846 shares during the last quarter. Finally, Sound Income Strategies LLC raised its position in Capital Southwest by 17.1% in the 4th quarter. Sound Income Strategies LLC now owns 885,967 shares of the asset manager's stock worth $20,980,000 after purchasing an additional 129,181 shares during the last quarter. Institutional investors own 23.42% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on CSWC shares. Zacks Research raised shares of Capital Southwest from a "strong sell" rating to a "hold" rating in a research note 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 issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $23.42.

Capital Southwest Trading Down 1.7%

NASDAQ CSWC opened at $23.89 on Tuesday. The stock has a 50-day simple moving average of $22.52 and a 200 day simple moving average of $21.99. The company has a market capitalization of $1.44 billion, a PE ratio of 13.20 and a beta of 0.72. The company has a current ratio of 0.15, a quick ratio of 0.15 and a debt-to-equity ratio of 0.51. Capital Southwest Corporation has a 12 month low of $19.07 and a 12 month high of $24.42.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last released its quarterly earnings data on Monday, February 2nd. The asset manager reported $0.64 EPS for the quarter, meeting analysts' consensus estimates of $0.64. The business had revenue of $61.45 million during the quarter, compared to the consensus estimate of $57.37 million. Capital Southwest had a return on equity of 13.76% and a net margin of 45.46%.During the same quarter in the prior year, the company posted $0.63 earnings per share. Research analysts forecast that Capital Southwest Corporation will post 2.37 EPS for the current year.

Capital Southwest Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be issued a $0.1934 dividend. This represents a c) dividend on an annualized basis and a yield of 9.7%. The ex-dividend date is Monday, June 15th. Capital Southwest's dividend payout ratio is currently 128.18%.

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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