Capital Southwest (NASDAQ:CSWC) Hits New 1-Year High – What’s Next?

Capital Southwest Corporation (NASDAQ:CSWC)’s share price reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $25.41 and last traded at $25.35, with a volume of 99007 shares. The stock had previously closed at $25.21.

Analyst Ratings Changes

CSWC has been the subject of several research reports. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Capital Southwest in a report on Thursday, June 18th. Citigroup reiterated a “market outperform” rating on shares of Capital Southwest in a research note on Wednesday, August 5th. B. Riley Financial raised their price target on Capital Southwest from $24.50 to $25.50 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Finally, Citizens Jmp boosted their target price on shares of Capital Southwest from $25.00 to $26.00 and gave the company a “market outperform” rating in a research note on Wednesday, August 5th. Six investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Capital Southwest currently has a consensus rating of “Moderate Buy” and a consensus price target of $23.60.

Capital Southwest Price Performance

The stock has a 50 day moving average of $24.11 and a two-hundred day moving average of $23.35. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.17 and a current ratio of 0.17. The stock has a market cap of $1.62 billion, a PE ratio of 14.03 and a beta of 0.69.

Capital Southwest (NASDAQ:CSWC) last issued its quarterly earnings results on Monday, August 3rd. The asset manager reported $0.58 EPS for the quarter, beating the consensus estimate of $0.56 by $0.02. The business had revenue of $61.05 million during the quarter, compared to the consensus estimate of $61.22 million. Capital Southwest had a net margin of 46.68% and a return on equity of 13.88%. During the same quarter in the prior year, the firm earned $0.61 EPS. Equities analysts anticipate that Capital Southwest Corporation will post 2.27 EPS for the current year.

Capital Southwest Dividend Announcement

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Royal Bank of Canada increased its position in Capital Southwest by 13.4% in the 1st quarter. Royal Bank of Canada now owns 69,139 shares of the asset manager’s stock worth $1,544,000 after purchasing an additional 8,188 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in shares of 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 purchasing an additional 183,313 shares in the last quarter. Caxton Associates LLP acquired a new stake in shares of Capital Southwest during the 1st quarter valued at about $318,000. Creative Planning bought a new stake in shares of Capital Southwest in the 2nd quarter valued at approximately $201,000. Finally, Invesco Ltd. grew its stake in shares of Capital Southwest by 21.8% in the 2nd quarter. Invesco Ltd. now owns 34,003 shares of the asset manager’s stock valued at $749,000 after buying an additional 6,094 shares in the last quarter. Hedge funds and other institutional investors own 23.42% of the company’s stock.

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.