Capital Southwest Corporation (NASDAQ:CSWC) Receives Consensus Recommendation of “Buy” from Analysts

Capital Southwest Corporation (NASDAQ:CSWC) has earned a consensus rating of “Buy” from the five ratings firms that are presently covering the company, Marketbeat reports. One equities research analyst has rated the stock with a hold rating, three have given a buy rating and one has issued a strong buy rating on the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $23.60.

Several equities research analysts recently weighed in on the stock. Wall Street Zen raised shares of Capital Southwest from a “sell” rating to a “hold” rating in a report on Saturday, April 19th. JMP Securities upgraded shares of Capital Southwest from a “market perform” rating to a “market outperform” rating and set a $25.00 price target on the stock in a report on Tuesday. UBS Group lowered their target price on Capital Southwest from $23.50 to $20.50 and set a “neutral” rating on the stock in a research note on Thursday, April 17th. Raymond James Financial dropped their price target on Capital Southwest from $24.00 to $23.00 and set an “outperform” rating on the stock in a research report on Friday, May 16th. Finally, Citizens Jmp raised Capital Southwest from a “market perform” rating to an “outperform” rating and set a $25.00 price objective for the company in a research report on Tuesday.

Capital Southwest Stock Performance

NASDAQ CSWC traded up $0.39 during trading on Tuesday, reaching $21.62. The company’s stock had a trading volume of 491,131 shares, compared to its average volume of 449,980. The firm has a market cap of $1.16 billion, a price-to-earnings ratio of 14.61 and a beta of 0.94. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.18 and a current ratio of 0.18. Capital Southwest has a twelve month low of $17.46 and a twelve month high of $27.23. The business’s fifty day moving average price is $20.60 and its 200-day moving average price is $21.54.

Capital Southwest (NASDAQ:CSWC) last issued its quarterly earnings data 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). The company had revenue of $52.34 million for the quarter, compared to analyst estimates of $52.83 million. Capital Southwest had a return on equity of 14.40% and a net margin of 34.51%. During the same quarter in the prior year, the firm earned $0.68 earnings per share. As a group, analysts anticipate that Capital Southwest will post 2.54 EPS for the current fiscal year.

Capital Southwest Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be issued a $0.1934 dividend. This represents a $2.32 annualized dividend and a dividend yield of 10.74%. The ex-dividend date of this dividend is Monday, September 15th. Capital Southwest’s payout ratio is 156.76%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CSWC. Sanders Morris Harris LLC increased its stake in shares of Capital Southwest by 75.9% in the 1st quarter. Sanders Morris Harris LLC now owns 1,433,064 shares of the asset manager’s stock valued at $31,986,000 after purchasing an additional 618,480 shares during the last quarter. Balyasny Asset Management L.P. acquired a new position in Capital Southwest in the fourth quarter valued at $21,846,000. Two Sigma Advisers LP boosted its position in shares of Capital Southwest by 17.3% during the 4th quarter. Two Sigma Advisers LP now owns 774,600 shares of the asset manager’s stock valued at $16,902,000 after purchasing an additional 114,000 shares in the last quarter. Punch & Associates Investment Management Inc. grew its position in shares of Capital Southwest by 2.1% during the 1st quarter. Punch & Associates Investment Management Inc. now owns 686,513 shares of the asset manager’s stock worth $15,323,000 after buying an additional 14,146 shares during the period. Finally, Two Sigma Investments LP increased its stake in Capital Southwest by 42.2% in the fourth quarter. Two Sigma Investments LP now owns 673,778 shares of the asset manager’s stock valued at $14,702,000 after purchasing an additional 200,060 shares in the last quarter. 23.42% of the stock is owned by institutional investors and hedge funds.

Capital Southwest Company Profile

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.