Capital Southwest (NASDAQ:CSWC) Posts Quarterly Earnings Results

Capital Southwest (NASDAQ:CSWC) posted its quarterly earnings results on Monday. The asset manager reported $0.64 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.64, Zacks reports. Capital Southwest had a net margin of 45.46% and a return on equity of 14.06%. 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.

Capital Southwest Trading Up 0.6%

Capital Southwest stock opened at $23.28 on Wednesday. The stock has a 50-day moving average price of $22.43 and a 200 day moving average price of $22.05. Capital Southwest has a 52 week low of $17.46 and a 52 week high of $23.86. The stock has a market cap of $1.34 billion, a PE ratio of 12.86 and a beta of 0.76. The company has a current ratio of 0.16, a quick ratio of 0.16 and a debt-to-equity ratio of 0.26.

Capital Southwest Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be paid a dividend of $0.1934 per share. The ex-dividend date of this dividend is Friday, March 13th. This represents a c) dividend on an annualized basis and a dividend yield of 10.0%. Capital Southwest’s dividend payout ratio (DPR) is presently 144.10%.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on CSWC. Noble Financial upgraded shares of Capital Southwest to a “buy” rating in a research report on Wednesday, November 5th. Loop Capital restated a “buy” rating and issued a $23.00 price target on shares of Capital Southwest in a report on Wednesday, November 5th. Capital One Financial set a $22.00 price objective on Capital Southwest in a research note on Tuesday, November 4th. Weiss Ratings upgraded Capital Southwest from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, January 28th. Finally, UBS Group dropped their price target on Capital Southwest from $23.00 to $21.50 and set a “neutral” rating for the company in a research report on Tuesday, October 14th. Seven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $23.64.

Institutional Trading of Capital Southwest

A number of hedge funds have recently bought and sold shares of CSWC. Zuckerman Investment Group LLC raised its holdings in Capital Southwest by 7.8% in the 2nd quarter. Zuckerman Investment Group LLC now owns 460,375 shares of the asset manager’s stock valued at $10,147,000 after acquiring an additional 33,355 shares during the last quarter. Franklin Resources Inc. boosted its stake in Capital Southwest by 7.0% in the 3rd quarter. Franklin Resources Inc. now owns 311,230 shares of the asset manager’s stock worth $6,803,000 after buying an additional 20,468 shares during the last quarter. Raymond James Financial Inc. grew its holdings in Capital Southwest by 5.7% in the 3rd quarter. Raymond James Financial Inc. now owns 302,853 shares of the asset manager’s stock valued at $6,620,000 after buying an additional 16,256 shares during the period. Goldman Sachs Group Inc. increased its stake in shares of Capital Southwest by 246.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 257,672 shares of the asset manager’s stock valued at $5,751,000 after acquiring an additional 183,313 shares during the last quarter. Finally, Marshall Wace LLP lifted its holdings in shares of Capital Southwest by 71.4% during the 3rd quarter. Marshall Wace LLP now owns 252,245 shares of the asset manager’s stock worth $5,514,000 after acquiring an additional 105,083 shares during the period. Institutional investors and hedge funds own 23.42% of the company’s stock.

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.