Capital Southwest (NASDAQ:CSWC) Releases Quarterly Earnings Results, Misses Expectations By $0.10 EPS

Capital Southwest (NASDAQ:CSWC) posted its quarterly earnings data on Wednesday. The asset manager reported $0.46 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.10), FiscalAI reports. The firm had revenue of $57.77 million during the quarter, compared to analyst estimates of $61.78 million. Capital Southwest had a net margin of 45.46% and a return on equity of 13.76%.

Capital Southwest Stock Performance

Shares of NASDAQ CSWC traded down $0.34 during mid-day trading on Wednesday, hitting $23.44. 845,462 shares of the company were exchanged, compared to its average volume of 665,119. The company has a quick ratio of 0.15, a current ratio of 0.15 and a debt-to-equity ratio of 0.51. The stock has a 50 day simple moving average of $22.78 and a 200-day simple moving average of $22.31. Capital Southwest has a 1-year low of $19.37 and a 1-year high of $24.43. The firm has a market cap of $1.41 billion, a price-to-earnings ratio of 12.95 and a beta of 0.71.

Capital Southwest Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be issued a dividend of $0.1934 per share. The ex-dividend date of this dividend is Monday, June 15th. This represents a c) annualized dividend and a dividend yield of 9.9%. Capital Southwest’s dividend payout ratio (DPR) is currently 128.18%.

Institutional Investors Weigh In On Capital Southwest

Several hedge funds have recently modified their holdings of the stock. Guggenheim Capital LLC lifted its holdings in shares of Capital Southwest by 7.5% during the fourth quarter. Guggenheim Capital LLC now owns 27,461 shares of the asset manager’s stock worth $608,000 after purchasing an additional 1,914 shares during the period. Atom Investors LP purchased a new position in Capital Southwest in the fourth quarter worth $1,458,000. Verition Fund Management LLC raised its position in Capital Southwest by 168.1% in the fourth quarter. Verition Fund Management LLC now owns 88,378 shares of the asset manager’s stock worth $1,958,000 after acquiring an additional 55,416 shares in the last quarter. Barclays PLC purchased a new position in Capital Southwest in the fourth quarter worth $2,165,000. Finally, CANADA LIFE ASSURANCE Co raised its position in Capital Southwest by 4.1% in the fourth quarter. CANADA LIFE ASSURANCE Co now owns 71,781 shares of the asset manager’s stock worth $1,591,000 after acquiring an additional 2,837 shares in the last quarter. 23.42% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Separately, Weiss Ratings raised Capital Southwest from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, January 28th. Six investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, Capital Southwest presently has a consensus rating of “Moderate Buy” and an average price target of $23.42.

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.