Insider Buying: Capital Southwest Co. (NASDAQ:CSWC) Director Purchases 700 Shares of Stock

Capital Southwest Co. (NASDAQ:CSWC) Director Christine Battist bought 700 shares of Capital Southwest stock in a transaction that occurred on Tuesday, September 28th. The stock was bought at an average cost of $25.40 per share, with a total value of $17,780.00. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.

NASDAQ:CSWC traded down $0.26 during mid-day trading on Tuesday, hitting $25.42. 108,384 shares of the stock traded hands, compared to its average volume of 161,983. The company has a market cap of $564.32 million, a PE ratio of 8.92 and a beta of 1.21. Capital Southwest Co. has a 12-month low of $12.63 and a 12-month high of $28.33. The company has a quick ratio of 0.13, a current ratio of 0.13 and a debt-to-equity ratio of 0.52. The business’s 50-day moving average price is $26.19 and its 200 day moving average price is $25.08.

Capital Southwest (NASDAQ:CSWC) last released its quarterly earnings data on Sunday, August 1st. The asset manager reported $0.43 earnings per share for the quarter, missing the consensus estimate of $0.44 by ($0.01). Capital Southwest had a net margin of 79.95% and a return on equity of 10.40%. The firm had revenue of $18.58 million during the quarter, compared to the consensus estimate of $18.41 million. Analysts anticipate that Capital Southwest Co. will post 1.78 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Friday, December 31st. Shareholders of record on Wednesday, December 15th will be issued a $0.47 dividend. This represents a $1.88 dividend on an annualized basis and a yield of 7.40%. The ex-dividend date of this dividend is Tuesday, December 14th. This is a boost from Capital Southwest’s previous quarterly dividend of $0.44. Capital Southwest’s dividend payout ratio is currently 106.02%.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Virtu Financial LLC bought a new stake in Capital Southwest in the 2nd quarter valued at $617,000. Marshall Wace North America L.P. purchased a new position in Capital Southwest during the 2nd quarter valued at about $591,000. Morgan Stanley raised its holdings in Capital Southwest by 94.3% in the second quarter. Morgan Stanley now owns 121,634 shares of the asset manager’s stock worth $2,825,000 after buying an additional 59,027 shares during the last quarter. Wells Fargo & Company MN boosted its position in shares of Capital Southwest by 23.2% in the second quarter. Wells Fargo & Company MN now owns 4,900 shares of the asset manager’s stock worth $114,000 after purchasing an additional 924 shares during the period. Finally, Invesco Ltd. purchased a new stake in shares of Capital Southwest in the second quarter valued at $1,028,000. Institutional investors own 27.12% of the company’s stock.

Several brokerages have issued reports on CSWC. Raymond James upped their target price on Capital Southwest from $27.50 to $29.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 4th. Zacks Investment Research cut Capital Southwest from a “hold” rating to a “sell” rating in a research report on Tuesday, July 27th. Finally, Oppenheimer assumed coverage on Capital Southwest in a report on Friday. They issued a “market perform” rating on the stock. One analyst has rated the stock with a sell rating, two have issued a hold rating and three have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, Capital Southwest presently has an average rating of “Hold” and an average target price of $24.20.

Capital Southwest Company Profile

Capital Southwest is a publicly–owned business development company with total assets of $496 million as of June 30, 2010. We provide patient capital to exceptional businesses with significant growth potential. As a public company, we have the flexibility to hold investments indefinitely, which has provided the management teams of our holdings a stable ownership platform since we were founded in 1961.

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