Capital Southwest Co. (NASDAQ:CSWC) Receives Consensus Rating of “Moderate Buy” from Brokerages

Shares of Capital Southwest Co. (NASDAQ:CSWC) have been given a consensus rating of “Moderate Buy” by the four research firms that are covering the firm, Marketbeat reports. One research analyst has rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $21.50.

Several equities analysts have recently weighed in on CSWC shares. Raymond James lifted their target price on shares of Capital Southwest from $23.00 to $24.00 and gave the company an “outperform” rating in a report on Wednesday, August 9th. TheStreet raised Capital Southwest from a “c” rating to a “b-” rating in a report on Tuesday, June 13th. StockNews.com initiated coverage on Capital Southwest in a research report on Thursday, August 17th. They issued a “hold” rating for the company. Finally, JMP Securities reaffirmed a “market outperform” rating and set a $22.00 price objective on shares of Capital Southwest in a research note on Friday, August 18th.

Capital Southwest Price Performance

Shares of Capital Southwest stock opened at $21.97 on Friday. The stock has a market capitalization of $877.72 million, a price-to-earnings ratio of 13.40 and a beta of 1.20. The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.12 and a current ratio of 0.12. The company has a fifty day moving average of $21.58 and a 200-day moving average of $19.44. Capital Southwest has a 52-week low of $16.28 and a 52-week high of $22.92.

Capital Southwest (NASDAQ:CSWC) last released its quarterly earnings data on Monday, August 7th. The asset manager reported $0.65 earnings per share for the quarter, beating analysts’ consensus estimates of $0.63 by $0.02. Capital Southwest had a net margin of 39.67% and a return on equity of 14.28%. The business had revenue of $40.36 million during the quarter, compared to analyst estimates of $38.90 million. Equities research analysts expect that Capital Southwest will post 2.6 EPS for the current year.

Capital Southwest Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 29th. Stockholders of record on Friday, September 15th will be paid a $0.62 dividend. The ex-dividend date is Thursday, September 14th. This is an increase from Capital Southwest’s previous quarterly dividend of $0.59. This represents a $2.48 annualized dividend and a dividend yield of 11.29%. Capital Southwest’s dividend payout ratio (DPR) is currently 136.59%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of CSWC. Belpointe Asset Management LLC bought a new position in Capital Southwest in the fourth quarter worth approximately $34,000. Tower Research Capital LLC TRC bought a new stake in shares of Capital Southwest in the 1st quarter valued at about $78,000. Parallel Advisors LLC grew its position in shares of Capital Southwest by 98.0% in the 2nd quarter. Parallel Advisors LLC now owns 4,815 shares of the asset manager’s stock worth $95,000 after buying an additional 2,383 shares during the last quarter. Quantbot Technologies LP increased its stake in shares of Capital Southwest by 4,740.0% in the first quarter. Quantbot Technologies LP now owns 4,840 shares of the asset manager’s stock worth $114,000 after acquiring an additional 4,740 shares during the period. Finally, Bank of America Corp DE boosted its holdings in Capital Southwest by 26.8% during the fourth quarter. Bank of America Corp DE now owns 6,143 shares of the asset manager’s stock worth $105,000 after buying an additional 1,298 shares in the last quarter. 20.58% of the stock is currently owned by hedge funds and other institutional investors.

About Capital Southwest

Capital Southwest Corporation is a business development company specializing in credit and private equity and venture capital investments in middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, recapitalizations and growth capital investments. It does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing.