Capital Southwest (NASDAQ:CSWC) Releases Q2 2027 Earnings Guidance

Capital Southwest (NASDAQ:CSWC) issued an update on its second quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 0.560-0.570 for the period, compared to the consensus earnings per share estimate of 0.550.

Capital Southwest Trading Down 0.1%

Shares of CSWC traded down $0.02 during mid-day trading on Wednesday, reaching $22.37. 491,811 shares of the company’s stock traded hands, compared to its average volume of 645,340. The stock has a market cap of $1.43 billion, a P/E ratio of 12.36 and a beta of 0.71. The stock’s 50-day moving average is $24.05 and its two-hundred day moving average is $23.74. Capital Southwest has a 12 month low of $19.91 and a 12 month high of $25.75. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.17 and a quick ratio of 0.17.

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

Capital Southwest Announces Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Tuesday, December 15th will be given a $0.1934 dividend. This represents a $2.32 annualized dividend and a yield of 10.4%. The ex-dividend date of this dividend is Tuesday, December 15th. Capital Southwest’s dividend payout ratio is 128.18%.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on CSWC shares. B. Riley Financial increased their target price on Capital Southwest from $24.50 to $25.50 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. 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. Weiss Ratings lowered shares of Capital Southwest from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, October 13th. UBS Group upped their price target on shares of Capital Southwest from $23.50 to $24.00 and gave the stock a “neutral” rating in a report on Friday, October 9th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Capital Southwest in a research note on Wednesday, August 5th. Six equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $24.10.

Insider Buying and Selling at Capital Southwest

In other news, Director William Thomas, III purchased 2,170 shares of the stock in a transaction that occurred on Thursday, October 1st. The stock was purchased at an average price of $23.04 per share, for a total transaction of $49,996.80. Following the completion of the acquisition, the director owned 22,842 shares of the company’s stock, valued at approximately $526,279.68. This trade represents a 10.50% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Corporate insiders own 2.70% of the company’s stock.

Capital Southwest Company Profile

Capital Southwest Corporation (NASDAQ: CSWC) is a business development company that provides financing to middle-market and lower-middle-market businesses in the United States. The company primarily invests in privately held companies that may require capital to support growth, acquisitions, recapitalizations, ownership transitions, or other strategic initiatives.

Its investment portfolio generally consists of senior secured loans, including first-lien and second-lien debt, as well as subordinated debt and equity investments.