Capital Southwest (NASDAQ:CSWC) Issues Earnings Results

Capital Southwest (NASDAQ:CSWC) issued its quarterly earnings results on Monday. The asset manager reported $0.39 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.56 by ($0.17), FiscalAI reports. Capital Southwest had a net margin of 48.68% and a return on equity of 14.00%. The firm had revenue of $61.05 million for the quarter, compared to analyst estimates of $61.22 million.

Capital Southwest Price Performance

Shares of CSWC traded up $0.35 during trading hours on Monday, hitting $23.94. 667,941 shares of the company were exchanged, compared to its average volume of 662,447. The company has a debt-to-equity ratio of 0.56, a current ratio of 0.11 and a quick ratio of 0.11. The company has a market capitalization of $1.49 billion, a PE ratio of 12.60 and a beta of 0.69. The firm has a fifty day simple moving average of $23.49 and a 200-day simple moving average of $23.14. Capital Southwest has a one year low of $19.37 and a one year high of $24.43.

Capital Southwest Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be paid a dividend of $0.1934 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a c) annualized dividend and a dividend yield of 9.7%. Capital Southwest’s dividend payout ratio (DPR) is currently 122.11%.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the company. B. Riley Financial upped their price objective on Capital Southwest from $24.00 to $24.50 and gave the company a “buy” rating in a report on Friday, May 15th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Capital Southwest in a report on Thursday, June 18th. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $23.20.

Institutional Investors Weigh In On Capital Southwest

Several hedge funds have recently modified their holdings of the stock. Goldman Sachs Group Inc. boosted its holdings in shares of Capital Southwest by 246.5% during the first quarter. Goldman Sachs Group Inc. now owns 257,672 shares of the asset manager’s stock worth $5,751,000 after purchasing an additional 183,313 shares during the period. HRT Financial LP grew its position in Capital Southwest by 176.0% during the second quarter. HRT Financial LP now owns 242,080 shares of the asset manager’s stock valued at $5,335,000 after purchasing an additional 154,384 shares in the last quarter. Marshall Wace LLP increased its stake in Capital Southwest by 71.4% in the 3rd quarter. Marshall Wace LLP now owns 252,245 shares of the asset manager’s stock valued at $5,514,000 after buying an additional 105,083 shares during the period. Barclays PLC acquired a new position in Capital Southwest in the 4th quarter valued at approximately $2,165,000. Finally, Atom Investors LP purchased a new stake in Capital Southwest in the 4th quarter worth approximately $1,458,000. 23.42% of the stock is owned by hedge funds and other institutional investors.

Capital Southwest Company Profile

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.