Capital Southwest (NASDAQ:CSWC) Hits New 52-Week High - Here's Why

Key Points

• Capital Southwest reached a new 52-week high, trading as high as $25.75 and closing around $25.57, supported by a “Moderate Buy” consensus from analysts.
• The company reported quarterly EPS of $0.58, beating estimates of $0.56, though revenue of $61.05 million came in slightly below expectations.
• Capital Southwest declared a monthly dividend of $0.1934 per share, representing an annualized yield of approximately 9.1%; institutional investors also increased their holdings, with such investors owning 23.42% of the stock.

Capital Southwest Corporation (NASDAQ:CSWC - Get Free Report) hit a new 52-week high on Tuesday . The stock traded as high as $25.75 and last traded at $25.57, with a volume of 545822 shares. The stock had previously closed at $25.47.

Wall Street Analyst Weigh In

CSWC has been the subject of several recent research reports. Weiss Ratings reiterated a "buy (b-)" rating on shares of Capital Southwest in a research note on Thursday, June 18th. Citizens Jmp upped their target price 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. 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 note on Wednesday, August 5th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Capital Southwest in a report on Wednesday, August 5th. Six analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Capital Southwest currently has an average rating of "Moderate Buy" and a consensus price target of $23.60.

Capital Southwest Trading Up 0.4%

The stock has a market cap of $1.63 billion, a price-to-earnings ratio of 14.13 and a beta of 0.69. The business's 50 day moving average is $24.21 and its 200 day moving average is $23.38. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.17 and a quick ratio of 0.17.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last posted its quarterly earnings results on Monday, August 3rd. The asset manager reported $0.58 earnings per share for the quarter, beating 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 company had revenue of $61.05 million for the quarter, compared to analysts' expectations of $61.22 million. During the same period last year, the firm earned $0.61 earnings per share. As a group, equities analysts expect that Capital Southwest Corporation will post 2.27 earnings per share for the current fiscal year.

Capital Southwest Announces Dividend

The company also recently disclosed a monthly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Tuesday, December 15th will be issued a dividend of $0.1934 per share. The ex-dividend date of this dividend is Tuesday, December 15th. This represents a c) annualized dividend and a dividend yield of 9.1%. Capital Southwest's dividend payout ratio (DPR) is presently 128.18%.

Institutional Trading of Capital Southwest

Several institutional investors and hedge funds have recently made changes to their positions in the company. Van ECK Associates Corp grew its position in Capital Southwest by 35.4% during the 2nd quarter. Van ECK Associates Corp now owns 1,526,667 shares of the asset manager's stock worth $36,289,000 after purchasing an additional 399,106 shares during the last quarter. Sound Income Strategies LLC raised its holdings 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 valued at $19,810,000 after buying an additional 17,362 shares during the last quarter. UBS Group AG raised its holdings in shares of Capital Southwest by 5.0% in the fourth quarter. UBS Group AG now owns 817,148 shares of the asset manager's stock valued at $18,100,000 after buying an additional 38,987 shares during the last quarter. Empowered Funds LLC acquired a new stake in shares of Capital Southwest during the first quarter worth about $13,694,000. Finally, Empirical Finance LLC acquired a new stake in shares of Capital Southwest during the first quarter worth about $13,689,000. 23.42% of the stock is owned by hedge funds and other institutional investors.

Capital Southwest Company Profile

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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