Capital Southwest (NASDAQ:CSWC) Stock Crosses Above 200-Day Moving Average – Here’s Why

Capital Southwest Corporation (NASDAQ:CSWC) shares crossed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $23.40 and traded as high as $23.74. Capital Southwest shares last traded at $23.49, with a volume of 572,140 shares changing hands.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on CSWC. B. Riley Financial lifted their target price on shares of Capital Southwest from $24.50 to $25.50 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Citizens Jmp upped their price target on shares of Capital Southwest from $25.00 to $26.00 and gave the stock a “market outperform” rating in a research report on Wednesday, August 5th. Weiss Ratings downgraded shares of Capital Southwest from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, October 13th. Citigroup reaffirmed a “market outperform” rating on shares of Capital Southwest in a research note on Wednesday, August 5th. Finally, UBS Group lifted their price objective on Capital Southwest from $23.50 to $24.00 and gave the stock a “neutral” rating in a report on Friday, October 9th. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, Capital Southwest has an average rating of “Moderate Buy” and a consensus target price of $25.17.

Capital Southwest Stock Up 0.4%

The business has a fifty day simple moving average of $23.44 and a two-hundred day simple moving average of $23.41. The company has a current ratio of 0.11, a quick ratio of 0.11 and a debt-to-equity ratio of 0.43. The company has a market cap of $1.58 billion, a PE ratio of 10.05 and a beta of 0.67.

Capital Southwest (NASDAQ:CSWC) last announced its earnings results on Monday, November 2nd. The asset manager reported $0.56 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.57 by ($0.01). The business had revenue of $67.16 million for the quarter, compared to analyst estimates of $65.61 million. Capital Southwest had a return on equity of 13.76% and a net margin of 43.06%. As a group, equities research analysts predict that Capital Southwest Corporation will post 2.27 earnings per share for the current year.

Capital Southwest Dividend Announcement

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 issued a $0.1934 dividend. The ex-dividend date is Tuesday, December 15th. This represents a $2.32 dividend on an annualized basis and a yield of 9.8%. Capital Southwest’s dividend payout ratio is presently 136.47%.

Insiders Place Their Bets

In related news, Director William Thomas, III bought 2,170 shares of the stock in a transaction dated Thursday, October 1st. The shares were acquired at an average cost of $23.04 per share, for a total transaction of $49,996.80. Following the acquisition, the director directly owned 22,842 shares in the company, valued at approximately $526,279.68. This trade represents a 10.50% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 2.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On Capital Southwest

A number of institutional investors have recently added to or reduced their stakes in CSWC. Apollon Wealth Management LLC grew 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 valued at $538,000 after buying an additional 594 shares in the last quarter. Cornerstone Wealth Management LLC grew its holdings in shares of Capital Southwest by 1.9% in the third quarter. Cornerstone Wealth Management LLC now owns 41,595 shares of the asset manager’s stock valued at $962,000 after purchasing an additional 782 shares during the period. Wedbush Securities Inc. grew its holdings in shares of Capital Southwest by 4.7% in 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 during the period. Allworth Financial LP grew its holdings in shares of Capital Southwest by 16.9% in 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 during the period. Finally, Symphony Financial Ltd. Co. increased its position in Capital Southwest by 2.9% during the second quarter. Symphony Financial Ltd. Co. now owns 42,154 shares of the asset manager’s stock worth $991,000 after purchasing an additional 1,185 shares during the last quarter. Hedge funds and other institutional investors own 23.42% of the company’s stock.

Capital Southwest Company Profile

Capital Southwest Corporation is an internally managed business development company that provides debt and equity financing to middle-market businesses. Its investments are primarily in privately held U.S. companies across a range of industries. The company’s portfolio generally includes senior secured loans, other debt investments and equity interests. Its financing can support business growth, acquisitions, recapitalizations and other corporate needs. Founded in 1961, Capital Southwest has a history as an investment company and today focuses on providing capital to middle-market businesses.