Capital Southwest (NASDAQ:CSWC) Director Buys 2,170 Shares of Company Stock

Key Points

• Director William Thomas III purchased 2,170 shares of Capital Southwest at an average price of $23.04, investing nearly $50,000 and increasing his stake by 10.5% to 22,842 shares.
• Capital Southwest reported quarterly EPS of $0.58, exceeding estimates by $0.02, and announced a monthly dividend of $0.1934, equivalent to a 10.0% annualized yield.
• Analysts maintain a generally positive outlook, with six Buy ratings and three Holds producing a consensus “Moderate Buy” rating and a $23.60 target price; institutional investors own 23.42% of the stock.

Capital Southwest Corporation (NASDAQ:CSWC - Get Free Report) Director William Thomas III purchased 2,170 shares of the firm's stock in a transaction dated Thursday, October 1st. The stock was purchased at an average cost of $23.04 per share, for a total transaction of $49,996.80. Following the acquisition, the director owned 22,842 shares of the company's stock, valued at approximately $526,279.68. This trade represents a 10.50% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.

Capital Southwest Price Performance

NASDAQ:CSWC traded up $0.17 during trading hours on Thursday, hitting $23.30. 478,291 shares of the company's stock traded hands, compared to its average volume of 583,489. The firm has a market cap of $1.48 billion, a P/E ratio of 12.87 and a beta of 0.71. 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 $24.27 and its two-hundred day simple moving average is $23.60. The company has a quick ratio of 0.17, a current ratio of 0.17 and a debt-to-equity ratio of 0.62.

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

Capital Southwest Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 15th will be given a $0.1934 dividend. This represents a $2.32 annualized dividend and a dividend yield of 10.0%. The ex-dividend date is Tuesday, December 15th. Capital Southwest's dividend payout ratio is 128.18%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Van ECK Associates Corp boosted its stake in shares of Capital Southwest by 35.4% in the 2nd quarter. Van ECK Associates Corp now owns 1,526,667 shares of the asset manager's stock valued at $36,289,000 after purchasing an additional 399,106 shares in the last quarter. Sound Income Strategies LLC raised its position in Capital Southwest by 2.0% in the 1st quarter. Sound Income Strategies LLC now owns 903,329 shares of the asset manager's stock worth $19,810,000 after purchasing an additional 17,362 shares during the period. Empowered Funds LLC purchased a new position in Capital Southwest in the 1st quarter worth $13,694,000. Empirical Finance LLC bought a new stake in Capital Southwest in the first quarter worth $13,689,000. Finally, Legal & General Group Plc bought a new stake in Capital Southwest in the second quarter worth $11,886,000. 23.42% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

CSWC has been the subject of several research analyst reports. Citigroup reiterated a "market outperform" rating on shares of Capital Southwest in a research report on Wednesday, August 5th. Weiss Ratings upgraded shares of Capital Southwest from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday. Citizens Jmp lifted their price objective on shares of Capital Southwest from $25.00 to $26.00 and gave the stock a "market outperform" rating in a report on Wednesday, August 5th. Finally, B. Riley Financial upped their target price on shares of Capital Southwest from $24.50 to $25.50 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Six equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $23.60.

About Capital Southwest

Capital Southwest Corporation NASDAQ: CSWC is a business development company that provides financing to middle-market and lower-middle-market businesses in the United States. The company invests primarily in privately held companies and seeks to support their growth, acquisitions, recapitalizations and other strategic initiatives.

Capital Southwest's investment activities generally include first-lien and second-lien loans, unitranche financing, subordinated debt and, in some cases, equity investments.

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