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

Shares of Capital Southwest Corporation (NASDAQ:CSWC) have received an average recommendation of “Buy” from the six brokerages that are presently covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a hold recommendation, four have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price target among brokerages that have covered the stock in the last year is $24.00.

CSWC has been the subject of several research analyst reports. JMP Securities upgraded Capital Southwest from a “market perform” rating to a “market outperform” rating and set a $25.00 price target for the company in a research note on Tuesday, June 24th. UBS Group increased their target price on Capital Southwest from $21.00 to $22.50 and gave the company a “neutral” rating in a research note on Wednesday, July 16th. Raymond James Financial lowered their target price on Capital Southwest from $24.00 to $23.00 and set an “outperform” rating for the company in a research note on Friday, May 16th. Citizens Jmp upgraded Capital Southwest from a “market perform” rating to an “outperform” rating and set a $25.00 target price for the company in a research note on Tuesday, June 24th. Finally, Citigroup upgraded Capital Southwest to an “outperform” rating in a research note on Tuesday, June 24th.

Capital Southwest Stock Performance

Shares of NASDAQ:CSWC opened at $23.33 on Friday. The firm has a market capitalization of $1.25 billion, a PE ratio of 15.76 and a beta of 0.95. The company has a debt-to-equity ratio of 0.58, a current ratio of 0.18 and a quick ratio of 0.18. The business has a 50-day moving average of $21.80 and a two-hundred day moving average of $21.70. Capital Southwest has a 12 month low of $17.46 and a 12 month high of $26.07.

Capital Southwest (NASDAQ:CSWC) last announced its quarterly earnings results on Wednesday, May 14th. The asset manager reported $0.54 EPS for the quarter, missing the consensus estimate of $0.62 by ($0.08). The firm 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 company earned $0.68 earnings per share. As a group, research analysts forecast that Capital Southwest will post 2.54 earnings per share for the current year.

Capital Southwest Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be paid a $0.1934 dividend. The ex-dividend date is Monday, September 15th. This represents a $2.32 dividend on an annualized basis and a dividend yield of 9.95%. Capital Southwest’s dividend payout ratio (DPR) is currently 156.76%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Sumitomo Mitsui Trust Group Inc. boosted its holdings in Capital Southwest by 30.4% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 134,178 shares of the asset manager’s stock valued at $2,995,000 after purchasing an additional 31,299 shares during the last quarter. Janney Montgomery Scott LLC purchased a new position in Capital Southwest in the first quarter valued at about $259,000. Bank of America Corp DE boosted its holdings in Capital Southwest by 135.3% in the fourth quarter. Bank of America Corp DE now owns 17,710 shares of the asset manager’s stock valued at $386,000 after purchasing an additional 10,182 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its holdings in Capital Southwest by 28.7% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 14,000 shares of the asset manager’s stock valued at $313,000 after purchasing an additional 3,118 shares during the last quarter. Finally, Jane Street Group LLC purchased a new position in Capital Southwest in the fourth quarter valued at about $475,000. Hedge funds and other institutional investors own 23.42% of the company’s stock.

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.