Capital Southwest (NASDAQ:CSWC) Reaches New 12-Month High – What’s Next?

Capital Southwest Corporation (NASDAQ:CSWC) hit a new 52-week high on Wednesday . The stock traded as high as $23.87 and last traded at $23.91, with a volume of 296806 shares changing hands. The stock had previously closed at $23.72.

Wall Street Analyst Weigh In

Several brokerages have weighed in on CSWC. Zacks Research raised Capital Southwest from a “strong sell” rating to a “hold” rating in a report on Monday, January 5th. Weiss Ratings raised Capital Southwest from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, January 28th. Six analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $23.42.

Capital Southwest Price Performance

The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.15 and a current ratio of 0.15. The company has a market cap of $1.45 billion, a price-to-earnings ratio of 13.27 and a beta of 0.72. The business has a fifty day moving average price of $22.45 and a 200 day moving average price of $21.93.

Capital Southwest (NASDAQ:CSWC) last issued 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 during 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 quarter in the previous year, the firm earned $0.63 earnings per share. As a group, research analysts anticipate that Capital Southwest Corporation will post 2.54 earnings per share for the current year.

Capital Southwest Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be issued a $0.1934 dividend. The ex-dividend date of this dividend is Monday, June 15th. This represents a c) dividend on an annualized basis and a dividend yield of 9.6%. Capital Southwest’s dividend payout ratio is 128.18%.

Hedge Funds Weigh In On Capital Southwest

Institutional investors and hedge funds have recently bought and sold shares of the company. Royal Bank of Canada increased its holdings in Capital Southwest by 13.4% in the 1st quarter. Royal Bank of Canada now owns 69,139 shares of the asset manager’s stock worth $1,544,000 after purchasing an additional 8,188 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in Capital Southwest by 246.5% in the 1st 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 in the last quarter. Caxton Associates LLP acquired a new position in Capital Southwest in the 1st quarter worth about $318,000. Creative Planning acquired a new position in Capital Southwest in the 2nd quarter worth about $201,000. Finally, Invesco Ltd. increased its holdings in Capital Southwest by 21.8% in the 2nd quarter. Invesco Ltd. now owns 34,003 shares of the asset manager’s stock worth $749,000 after purchasing an additional 6,094 shares in the last quarter. Institutional investors and hedge funds own 23.42% of the company’s stock.

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.