Capital Southwest (NASDAQ:CSWC) Sets New 12-Month High – What’s Next?

Capital Southwest Corporation (NASDAQ:CSWC)’s share price hit a new 52-week high during trading on Wednesday . The company traded as high as $23.87 and last traded at $23.91, with a volume of 296806 shares traded. The stock had previously closed at $23.72.

Analyst Ratings Changes

CSWC has been the topic of a number of recent analyst reports. Zacks Research raised shares of Capital Southwest from a “strong sell” rating to a “hold” rating in a research note on Monday, January 5th. Weiss Ratings raised shares of 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 given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $23.42.

Capital Southwest Stock Performance

The company has a current ratio of 0.15, a quick ratio of 0.15 and a debt-to-equity ratio of 0.51. The firm has a market capitalization of $1.43 billion, a price-to-earnings ratio of 13.16 and a beta of 0.72. The stock’s 50 day moving average price is $22.48 and its two-hundred day moving average price is $21.96.

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

Capital Southwest Dividend Announcement

The firm also recently disclosed a monthly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be paid a $0.1934 dividend. This represents a c) dividend on an annualized basis and a yield of 9.7%. The ex-dividend date of this dividend is Monday, June 15th. Capital Southwest’s dividend payout ratio is presently 128.18%.

Institutional Investors Weigh In On Capital Southwest

A number of large investors have recently added to or reduced their stakes in CSWC. Triumph Capital Management acquired a new stake in Capital Southwest in the 3rd quarter valued at about $28,000. Tower Research Capital LLC TRC grew its stake in Capital Southwest by 13,307.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,877 shares of the asset manager’s stock valued at $41,000 after acquiring an additional 1,863 shares during the last quarter. State of Alaska Department of Revenue acquired a new stake in Capital Southwest in the 3rd quarter valued at about $48,000. Osbon Capital Management LLC acquired a new stake in Capital Southwest in the 4th quarter valued at about $55,000. Finally, Chilton Capital Management LLC acquired a new stake in Capital Southwest in the 3rd quarter valued at about $77,000. 23.42% of the stock is owned by institutional investors and hedge funds.

About Capital Southwest

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.