Capital Southwest Co. to Issue Monthly Dividend of $0.19 (NASDAQ:CSWC)

Capital Southwest Co. (NASDAQ:CSWC) declared a monthly dividend on Thursday, June 12th, Wall Street Journal reports. Shareholders of record on Monday, September 15th will be given a dividend of 0.1934 per share by the asset manager on Tuesday, September 30th. This represents a $2.32 dividend on an annualized basis and a yield of 11.24%. The ex-dividend date of this dividend is Monday, September 15th.

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 fall. Equities 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 Stock Down 4.0%

CSWC opened at $20.65 on Friday. The company has a quick ratio of 0.18, a current ratio of 0.18 and a debt-to-equity ratio of 0.64. The stock has a market cap of $1.11 billion, a price-to-earnings ratio of 14.65 and a beta of 0.94. Capital Southwest has a twelve month low of $17.46 and a twelve month high of $27.23. The company’s 50-day moving average price is $20.36 and its two-hundred day moving average price is $21.66.

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

Institutional Trading of Capital Southwest

A number of hedge funds and other institutional investors have recently bought and sold shares of CSWC. Goldman Sachs Group Inc. increased its holdings in Capital Southwest by 246.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 257,672 shares of the asset manager’s stock worth $5,751,000 after acquiring an additional 183,313 shares during the period. Caxton Associates LLP bought a new position in Capital Southwest in the first quarter valued at $318,000. Finally, Royal Bank of Canada increased its stake in Capital Southwest by 13.4% in 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 during the last quarter. Institutional investors own 23.42% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the stock. Raymond James lowered their price target on shares of Capital Southwest from $24.00 to $23.00 and set an “outperform” rating on the stock in a research report on Friday, May 16th. Wall Street Zen raised shares of Capital Southwest from a “sell” rating to a “hold” rating in a research report on Saturday, April 19th. Finally, UBS Group lowered their price target on shares of Capital Southwest from $23.50 to $20.50 and set a “neutral” rating on the stock in a research report on Thursday, April 17th.

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.