Capital Southwest (NASDAQ:CSWC) Stock Price Crosses Above 200 Day Moving Average – Should You Sell?

Shares of Capital Southwest Corporation (NASDAQ:CSWC) passed above its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $23.40 and traded as high as $23.45. Capital Southwest shares last traded at $23.41, with a volume of 307,066 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on CSWC shares. Weiss Ratings cut Capital Southwest from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, October 13th. Citizens Jmp increased their price target on Capital Southwest from $25.00 to $26.00 and gave the stock a “market outperform” rating in a report on Wednesday, August 5th. UBS Group raised their price objective on shares of Capital Southwest from $23.50 to $24.00 and gave the stock a “neutral” rating in a research report on Friday, October 9th. Citigroup reiterated a “market outperform” rating on shares of Capital Southwest in a research report on Wednesday, August 5th. Finally, B. Riley Financial upped their price objective on shares of Capital Southwest from $24.50 to $25.50 and gave the company a “buy” rating in a report on Wednesday, August 5th. Six analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, Capital Southwest presently has an average rating of “Moderate Buy” and an average target price of $24.10.

Capital Southwest Price Performance

The stock has a market capitalization of $1.48 billion, a P/E ratio of 12.80 and a beta of 0.71. The business’s 50 day simple moving average is $23.72 and its two-hundred day simple moving average is $23.40. The company has a quick ratio of 0.17, a current ratio of 0.17 and a debt-to-equity ratio of 0.62.

Capital Southwest (NASDAQ:CSWC) last announced its quarterly earnings results on Monday, August 3rd. The asset manager reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.02. The business had revenue of $61.05 million for the quarter, compared to analysts’ expectations 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 last year, the firm earned $0.61 EPS. As a group, sell-side analysts forecast that Capital Southwest Corporation will post 2.27 earnings per share for the current fiscal year.

Capital Southwest Announces Dividend

The firm also recently declared 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. This represents a $2.32 dividend on an annualized basis and a dividend yield of 10.0%. The ex-dividend date of this dividend is Tuesday, December 15th. Capital Southwest’s dividend payout ratio (DPR) is presently 128.18%.

Insider Activity

In related news, Director William Thomas, III purchased 2,170 shares of Capital Southwest stock in a transaction that occurred on Thursday, October 1st. The stock was bought at an average price of $23.04 per share, for a total transaction of $49,996.80. Following the completion of the transaction, the director owned 22,842 shares in the company, valued at $526,279.68. This represents a 10.50% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. 2.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Apollon Wealth Management LLC raised its holdings in Capital Southwest by 2.6% in the 3rd quarter. Apollon Wealth Management LLC now owns 23,275 shares of the asset manager’s stock worth $538,000 after acquiring an additional 594 shares during the last quarter. Leonteq Securities AG raised its stake in shares of Capital Southwest by 11.1% in the first quarter. Leonteq Securities AG now owns 7,000 shares of the asset manager’s stock worth $155,000 after purchasing an additional 700 shares during the last quarter. Wedbush Securities Inc. lifted its holdings in shares of Capital Southwest by 4.7% during the third quarter. Wedbush Securities Inc. now owns 20,184 shares of the asset manager’s stock valued at $467,000 after purchasing an additional 908 shares in the last quarter. Allworth Financial LP lifted its holdings in shares of Capital Southwest by 16.9% during the second quarter. Allworth Financial LP now owns 6,535 shares of the asset manager’s stock valued at $155,000 after purchasing an additional 947 shares in the last quarter. Finally, Symphony Financial Ltd. Co. boosted its position in shares of Capital Southwest by 2.9% during the second quarter. Symphony Financial Ltd. Co. now owns 42,154 shares of the asset manager’s stock valued at $991,000 after buying an additional 1,185 shares during the last quarter. 23.42% of the stock is currently owned by hedge funds and other institutional investors.

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.