Capital Southwest (NASDAQ:CSWC) Issues Earnings Results

Capital Southwest (NASDAQ:CSWC) announced its quarterly earnings data on Monday. The asset manager reported $0.56 earnings per share for the quarter, missing the consensus estimate of $0.57 by ($0.01), Zacks reports. The company had revenue of $67.16 million during the quarter, compared to analyst estimates of $65.61 million. Capital Southwest had a net margin of 46.68% and a return on equity of 13.88%.

Capital Southwest Price Performance

CSWC stock opened at $23.43 on Tuesday. The firm has a 50 day moving average of $23.69 and a 200-day moving average of $23.40. The company has a market cap of $1.49 billion, a price-to-earnings ratio of 9.75 and a beta of 0.71. Capital Southwest has a 12-month low of $19.91 and a 12-month high of $25.75. The company has a current ratio of 0.17, a quick ratio of 0.17 and a debt-to-equity ratio of 0.62.

Capital Southwest Announces Dividend

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 given a $0.1934 dividend. The ex-dividend date is Tuesday, December 15th. This represents a $2.32 annualized dividend and a yield of 9.9%. Capital Southwest’s dividend payout ratio is presently 128.18%.

Insider Buying and Selling at Capital Southwest

In related news, Director William Thomas, III bought 2,170 shares of the company’s stock in a transaction that occurred on 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 owned 22,842 shares in the company, valued at $526,279.68. This represents a 10.50% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. 2.70% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several research firms have weighed in on CSWC. Citizens Jmp boosted 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 note on Wednesday, August 5th. Weiss Ratings cut Capital Southwest from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, October 13th. B. Riley Financial boosted their target price on Capital Southwest from $24.50 to $25.50 and gave the company a “buy” rating in a research note on Wednesday, August 5th. UBS Group boosted their target price on Capital Southwest from $23.50 to $24.00 and gave the company a “neutral” rating in a research note on Friday, October 9th. Finally, Citigroup restated a “market outperform” rating on shares of Capital Southwest in a report on Wednesday, August 5th. Six investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $24.10.

Capital Southwest Company Profile

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.