Capital Southwest (NASDAQ:CSWC) Releases Quarterly Earnings Results, Misses Estimates By $0.24 EPS

Capital Southwest (NASDAQ:CSWC) issued its earnings results on Monday. The asset manager reported $0.33 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.24), FiscalAI reports. The firm had revenue of $67.16 million for the quarter, compared to analysts’ expectations of $65.61 million. Capital Southwest had a return on equity of 13.88% and a net margin of 46.68%.

Capital Southwest Stock Up 1.1%

Shares of NASDAQ:CSWC traded up $0.26 during mid-day trading on Monday, hitting $23.43. 416,723 shares of the company traded hands, compared to its average volume of 635,103. The firm has a market cap of $1.49 billion, a P/E ratio of 12.94 and a beta of 0.67. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.17 and a current ratio of 0.17. Capital Southwest has a 52-week low of $19.91 and a 52-week high of $25.75. The firm’s 50 day simple moving average is $23.72 and its 200 day simple moving average is $23.40.

Capital Southwest Dividend Announcement

The business also recently announced 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 dividend yield of 9.9%. The ex-dividend date is Tuesday, December 15th. Capital Southwest’s dividend payout ratio (DPR) is presently 128.18%.

Insiders Place Their Bets

In related news, Director William Thomas, III purchased 2,170 shares of the firm’s stock in a transaction on Thursday, October 1st. The stock was purchased 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 in the company, valued at $526,279.68. The trade was a 10.50% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 2.70% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several research analysts recently commented on the stock. Citizens Jmp raised their price target on shares of Capital Southwest from $25.00 to $26.00 and gave the company a “market outperform” rating in a report on Wednesday, August 5th. Citigroup reiterated a “market outperform” rating on shares of Capital Southwest in a research note on Wednesday, August 5th. B. Riley Financial increased their price objective on shares of Capital Southwest from $24.50 to $25.50 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. UBS Group raised their target price on shares of Capital Southwest from $23.50 to $24.00 and gave the company a “neutral” rating in a research note on Friday, October 9th. Finally, Weiss Ratings lowered shares of Capital Southwest from a “buy (b)” rating to a “buy (b-)” rating in a report on Tuesday, October 13th. Six investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target 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.