Capital Southwest (NASDAQ:CSWC) Issues Quarterly Earnings Results

Capital Southwest (NASDAQ:CSWC) released its quarterly earnings data on Monday. The asset manager reported $0.56 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.57 by ($0.01), Zacks reports. The firm 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 13.88% and a net margin of 46.68%.

Capital Southwest Trading Up 1.1%

NASDAQ CSWC opened at $23.43 on Tuesday. The company has a quick ratio of 0.17, a current ratio of 0.17 and a debt-to-equity ratio of 0.62. The firm has a 50-day moving average price of $23.69 and a 200 day moving average price of $23.40. The stock has a market capitalization of $1.49 billion, a P/E ratio of 9.75 and a beta of 0.71. Capital Southwest has a 52-week low of $19.91 and a 52-week high of $25.75.

Capital Southwest Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 15th will be issued a dividend of $0.1934 per share. This represents a $2.32 annualized dividend and a yield of 9.9%. The ex-dividend date of this dividend is Tuesday, December 15th. Capital Southwest’s dividend payout ratio is currently 128.18%.

Analyst Upgrades and Downgrades

CSWC has been the subject of several recent analyst reports. Citizens Jmp raised their target price on Capital Southwest from $25.00 to $26.00 and gave the stock a “market outperform” rating in a research note on Wednesday, August 5th. Citigroup restated a “market outperform” rating on shares of Capital Southwest in a research note on Wednesday, August 5th. Weiss Ratings cut shares of Capital Southwest from a “buy (b)” rating to a “buy (b-)” rating in a report on Tuesday, October 13th. B. Riley Financial upped their price objective on Capital Southwest from $24.50 to $25.50 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Finally, UBS Group lifted their price target on shares of Capital Southwest from $23.50 to $24.00 and gave the stock a “neutral” rating in a research note on Friday, October 9th. Six research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $24.10.

Insider Buying and Selling

In related news, Director William Thomas, III purchased 2,170 shares of the business’s stock in a transaction dated Thursday, October 1st. The stock was acquired at an average price of $23.04 per share, for a total transaction of $49,996.80. Following the acquisition, the director directly owned 22,842 shares of the company’s stock, valued at $526,279.68. This trade represents a 10.50% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 2.70% of the company’s stock.

About Capital Southwest

Capital Southwest Corporation (NASDAQ: CSWC) is a business development company that provides financing to middle-market and lower-middle-market businesses in the United States. The company primarily invests in privately held companies that may require capital to support growth, acquisitions, recapitalizations, ownership transitions, or other strategic initiatives.

Its investment portfolio generally consists of senior secured loans, including first-lien and second-lien debt, as well as subordinated debt and equity investments.