Investors Purchase High Volume of Capital Southwest Put Options (NASDAQ:CSWC)

Capital Southwest Corporation (NASDAQ:CSWC) was the recipient of unusually large options trading activity on Friday. Investors bought 3,523 put options on the stock. This represents an increase of approximately 1,040% compared to the average volume of 309 put options.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Zacks Research upgraded shares of Capital Southwest from a “strong sell” rating to a “hold” rating in a report on Monday, January 5th. Weiss Ratings upgraded Capital Southwest from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, January 28th. Six investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $23.42.

Institutional Trading of Capital Southwest

Several institutional investors have recently made changes to their positions in CSWC. Triumph Capital Management bought a new stake in Capital Southwest in the third quarter valued at about $28,000. Tower Research Capital LLC TRC raised its position in Capital Southwest by 13,307.1% in the second quarter. Tower Research Capital LLC TRC now owns 1,877 shares of the asset manager’s stock worth $41,000 after purchasing an additional 1,863 shares in the last quarter. State of Alaska Department of Revenue bought a new position in Capital Southwest during the third quarter worth about $48,000. Osbon Capital Management LLC acquired a new stake in Capital Southwest during the fourth quarter valued at approximately $55,000. Finally, Newbridge Financial Services Group Inc. acquired a new stake in Capital Southwest during the second quarter valued at approximately $70,000. 23.42% of the stock is currently owned by institutional investors and hedge funds.

Capital Southwest Stock Performance

Shares of NASDAQ:CSWC traded down $0.20 during trading on Friday, hitting $21.62. 271,724 shares of the stock were exchanged, compared to its average volume of 642,697. The company has a market capitalization of $1.30 billion, a price-to-earnings ratio of 11.95 and a beta of 0.75. The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.15 and a current ratio of 0.15. Capital Southwest has a 1-year low of $17.46 and a 1-year high of $23.84. The company’s fifty day simple moving average is $22.66 and its 200-day simple moving average is $21.97.

Capital Southwest (NASDAQ:CSWC) last issued its earnings results on Monday, February 2nd. The asset manager reported $0.64 EPS for the quarter, meeting analysts’ consensus estimates of $0.64. The business had revenue of $61.45 million during the quarter, compared to analyst estimates of $57.37 million. Capital Southwest had a return on equity of 13.76% and a net margin of 45.46%.During the same period in the prior year, the company posted $0.63 earnings per share. Sell-side analysts expect that Capital Southwest will post 2.54 EPS for the current fiscal year.

Capital Southwest Announces Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be paid a $0.1934 dividend. The ex-dividend date is Monday, June 15th. This represents a c) dividend on an annualized basis and a dividend yield of 10.7%. Capital Southwest’s dividend payout ratio is currently 128.18%.

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.