Investors Purchase Large Volume of Put Options on Capital Southwest (NASDAQ:CSWC)

Capital Southwest Corporation (NASDAQ:CSWC) was the recipient of some unusual options trading on Friday. Traders bought 3,523 put options on the stock. This represents an increase of 1,040% compared to the average daily volume of 309 put options.

Capital Southwest Stock Performance

NASDAQ CSWC opened at $21.45 on Friday. The company has a market capitalization of $1.29 billion, a price-to-earnings ratio of 11.85 and a beta of 0.75. The company has a quick ratio of 0.15, a current ratio of 0.15 and a debt-to-equity ratio of 0.51. Capital Southwest has a twelve month low of $17.46 and a twelve month high of $23.84. The stock has a fifty day simple moving average of $22.62 and a 200 day simple moving average of $21.96.

Capital Southwest (NASDAQ:CSWC) last announced its earnings results on Monday, February 2nd. The asset manager reported $0.64 EPS for the quarter, hitting the consensus estimate of $0.64. The firm had revenue of $61.45 million for the quarter, compared to the consensus estimate of $57.37 million. Capital Southwest had a return on equity of 13.76% and a net margin of 45.46%.During the same period in the previous year, the business earned $0.63 EPS. Sell-side analysts expect that Capital Southwest will post 2.54 EPS for the current year.

Capital Southwest Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be paid a $0.1934 dividend. This represents a c) dividend on an annualized basis and a dividend yield of 10.8%. The ex-dividend date of this dividend is Monday, June 15th. Capital Southwest’s payout ratio is currently 128.18%.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Zacks Research upgraded Capital Southwest from a “strong sell” rating to a “hold” rating in a report on Monday, January 5th. Weiss Ratings upgraded shares of Capital Southwest from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, January 28th. Six equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $23.42.

Institutional Trading of Capital Southwest

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Royal Bank of Canada boosted its stake in shares of Capital Southwest by 13.4% in the 1st quarter. Royal Bank of Canada now owns 69,139 shares of the asset manager’s stock valued at $1,544,000 after purchasing an additional 8,188 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in Capital Southwest by 246.5% in the first quarter. Goldman Sachs Group Inc. now owns 257,672 shares of the asset manager’s stock valued at $5,751,000 after buying an additional 183,313 shares during the period. Caxton Associates LLP acquired a new position in Capital Southwest in the first quarter valued at $318,000. Creative Planning bought a new stake in Capital Southwest during the second quarter valued at $201,000. Finally, MAI Capital Management boosted its position in Capital Southwest by 32.5% during the second quarter. MAI Capital Management now owns 3,524 shares of the asset manager’s stock valued at $78,000 after acquiring an additional 865 shares during the last quarter. Institutional investors and hedge funds own 23.42% of the company’s stock.

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.