Capital Southwest Co. (CSWC) to Issue Quarterly Dividend of $0.58 on June 30th

Capital Southwest Co. (NASDAQ:CSWC) announced a quarterly dividend on Friday, April 25th, RTT News reports. Investors of record on Friday, June 13th will be paid a dividend of 0.58 per share by the asset manager on Monday, June 30th. This represents a $2.32 dividend on an annualized basis and a yield of 10.89%. The ex-dividend date is Friday, June 13th.

Capital Southwest has a payout ratio of 99.1% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Equities research analysts expect Capital Southwest to earn $2.44 per share next year, which means the company should continue to be able to cover its $2.32 annual dividend with an expected future payout ratio of 95.1%.

Capital Southwest Price Performance

Shares of CSWC stock opened at $21.31 on Wednesday. Capital Southwest has a 1-year low of $17.46 and a 1-year high of $27.23. The stock’s 50-day moving average is $20.22 and its 200 day moving average is $21.69. The company has a market cap of $1.14 billion, a P/E ratio of 15.11 and a beta of 0.94. The company has a debt-to-equity ratio of 0.64, a current ratio of 0.18 and a quick ratio of 0.18.

Capital Southwest (NASDAQ:CSWC) last issued its quarterly earnings results on Wednesday, May 14th. The asset manager reported $0.54 earnings per share for the quarter, missing the consensus estimate of $0.62 by ($0.08). The business had revenue of $52.34 million during the quarter, compared to analyst estimates of $52.83 million. Capital Southwest had a return on equity of 15.18% and a net margin of 33.49%. During the same period in the prior year, the business posted $0.68 EPS. Research analysts predict that Capital Southwest will post 2.54 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Capital Southwest

Institutional investors and hedge funds have recently modified their holdings of the company. Caxton Associates LLP acquired a new stake in shares of Capital Southwest during the first quarter worth about $318,000. Royal Bank of Canada raised its position in Capital Southwest by 13.4% during the first quarter. Royal Bank of Canada now owns 69,139 shares of the asset manager’s stock valued at $1,544,000 after acquiring an additional 8,188 shares in the last quarter. Finally, Goldman Sachs Group Inc. raised its position in Capital Southwest by 246.5% during the first quarter. Goldman Sachs Group Inc. now owns 257,672 shares of the asset manager’s stock valued at $5,751,000 after acquiring an additional 183,313 shares in the last quarter. Institutional investors and hedge funds own 23.42% of the company’s stock.

Wall Street Analyst Weigh In

CSWC has been the subject of several recent analyst reports. Raymond James lowered their price target on Capital Southwest from $24.00 to $23.00 and set an “outperform” rating for the company in a report on Friday, May 16th. UBS Group decreased their target price on Capital Southwest from $23.50 to $20.50 and set a “neutral” rating for the company in a report on Thursday, April 17th. Finally, Wall Street Zen raised Capital Southwest from a “sell” rating to a “hold” rating in a report on Saturday, April 19th.

About Capital Southwest

Capital Southwest Corporation is a business development company specializing in credit and private equity and venture capital investments in middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, industry consolidation, recapitalizations and growth capital investments.