Legal & General Group Plc Invests $11.89 Million in Capital Southwest Corporation $CSWC

Key Points

• Legal & General Group Plc acquired 499,715 shares of Capital Southwest in the second quarter, worth approximately $11.89 million and representing a 0.78% stake. Institutional investors and hedge funds collectively own 23.42% of CSWC.
• Analysts maintain a favorable outlook, with six Buy ratings and three Holds producing a consensus “Moderate Buy” rating and a $23.60 price target; recent firms raised targets to as high as $26.00.
• Capital Southwest exceeded quarterly EPS expectations, reporting $0.58 versus the $0.56 consensus, and declared a monthly dividend of $0.1934 per share, implying a 9.1% annualized yield.

Legal & General Group Plc purchased a new position in Capital Southwest Corporation (NASDAQ:CSWC - Free Report) during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 499,715 shares of the asset manager's stock, valued at approximately $11,886,000. Legal & General Group Plc owned 0.78% of Capital Southwest at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently bought and sold shares of CSWC. Triumph Capital Management purchased a new stake in Capital Southwest during the third quarter worth $28,000. Allied Private Wealth LLC purchased a new position in shares of Capital Southwest in the second quarter valued at $37,000. Tower Research Capital LLC TRC raised its stake in shares of Capital Southwest by 13,307.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 1,877 shares of the asset manager's stock worth $41,000 after buying an additional 1,863 shares during the last quarter. Osbon Capital Management LLC acquired a new position in shares of Capital Southwest during the 4th quarter worth $55,000. Finally, CENTRAL TRUST Co purchased a new stake in shares of Capital Southwest in the 1st quarter worth about $60,000. 23.42% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on CSWC. Citigroup reissued a "market outperform" rating on shares of Capital Southwest in a research note on Wednesday, August 5th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Capital Southwest in a research report on Thursday, June 18th. Citizens Jmp raised their price objective on shares of Capital Southwest from $25.00 to $26.00 and gave the stock a "market outperform" rating in a research note on Wednesday, August 5th. Finally, B. Riley Financial lifted their price objective on Capital Southwest from $24.50 to $25.50 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Six analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $23.60.

Capital Southwest Stock Up 0.4%

CSWC opened at $25.57 on Tuesday. The company has a quick ratio of 0.17, a current ratio of 0.17 and a debt-to-equity ratio of 0.62. The firm has a market cap of $1.63 billion, a P/E ratio of 14.13 and a beta of 0.69. Capital Southwest Corporation has a 52 week low of $19.37 and a 52 week high of $25.75. The business's fifty day simple moving average is $24.21 and its 200 day simple moving average is $23.38.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last posted its quarterly earnings data on Monday, August 3rd. The asset manager reported $0.58 EPS for the quarter, topping analysts' consensus estimates of $0.56 by $0.02. The firm had revenue of $61.05 million during the quarter, compared to analysts' expectations of $61.22 million. Capital Southwest had a return on equity of 13.88% and a net margin of 46.68%.During the same quarter last year, the business posted $0.61 EPS. As a group, equities research analysts anticipate that Capital Southwest Corporation will post 2.27 EPS for the current fiscal year.

Capital Southwest Announces Dividend

The company also recently declared a monthly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 15th will be issued a dividend of $0.1934 per share. The ex-dividend date is Tuesday, December 15th. This represents a c) dividend on an annualized basis and a dividend yield of 9.1%. Capital Southwest's payout ratio is 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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