Melia Wealth LLC Makes New Investment in Capital Southwest Corporation $CSWC

Key Points

• Melia Wealth LLC acquired 377,760 shares of Capital Southwest worth approximately $8.98 million, making CSWC its seventh-largest portfolio holding and representing 0.59% of the company.
• Analysts maintain a generally positive outlook, with six Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $23.60.
• Capital Southwest reported quarterly EPS of $0.58, exceeding estimates of $0.56, and announced a monthly dividend of $0.1934 per share, equivalent to a reported 9.1% annualized yield.

Melia Wealth LLC acquired a new stake in shares of Capital Southwest Corporation (NASDAQ:CSWC - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 377,760 shares of the asset manager's stock, valued at approximately $8,979,000. Capital Southwest comprises about 5.2% of Melia Wealth LLC's investment portfolio, making the stock its 7th largest position. Melia Wealth LLC owned 0.59% of Capital Southwest as of its most recent filing with the SEC.

Other institutional investors have also recently made changes to their positions in the company. Sound Income Strategies LLC lifted its position in shares of Capital Southwest by 2.0% in the first quarter. Sound Income Strategies LLC now owns 903,329 shares of the asset manager's stock worth $19,810,000 after buying an additional 17,362 shares in the last quarter. UBS Group AG increased its stake in Capital Southwest by 5.0% in the 4th quarter. UBS Group AG now owns 817,148 shares of the asset manager's stock worth $18,100,000 after acquiring an additional 38,987 shares during the last quarter. Empowered Funds LLC purchased a new stake in shares of Capital Southwest during the 1st quarter worth approximately $13,694,000. Empirical Finance LLC purchased a new stake in shares of Capital Southwest during the 1st quarter worth approximately $13,689,000. Finally, Legal & General Group Plc bought a new position in shares of Capital Southwest during the 2nd quarter valued at approximately $11,886,000. Hedge funds and other institutional investors own 23.42% of the company's stock.

Wall Street Analysts Forecast Growth

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

Capital Southwest Stock Performance

NASDAQ:CSWC opened at $25.40 on Friday. The stock's fifty day moving average is $24.11 and its 200 day moving average is $23.35. Capital Southwest Corporation has a fifty-two week low of $19.37 and a fifty-two week high of $25.48. The firm has a market capitalization of $1.62 billion, a PE ratio of 14.03 and a beta of 0.69. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.17 and a current ratio of 0.17.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last issued its quarterly earnings results on Monday, August 3rd. The asset manager reported $0.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.56 by $0.02. The company had revenue of $61.05 million during the quarter, compared to the consensus estimate of $61.22 million. Capital Southwest had a return on equity of 13.88% and a net margin of 46.68%.During the same period last year, the company earned $0.61 earnings per share. On average, sell-side analysts anticipate that Capital Southwest Corporation will post 2.27 earnings per share for the current year.

Capital Southwest Announces Dividend

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