Capital Southwest (NASDAQ:CSWC) Posts Earnings Results

Capital Southwest (NASDAQ:CSWC) released its quarterly earnings results on Wednesday. The asset manager reported $0.46 EPS for the quarter, missing analysts’ consensus estimates of $0.56 by ($0.10), FiscalAI reports. Capital Southwest had a return on equity of 13.76% and a net margin of 45.46%.The company had revenue of $57.77 million for the quarter, compared to the consensus estimate of $61.78 million.

Capital Southwest Price Performance

Shares of NASDAQ CSWC traded down $0.34 during midday trading on Wednesday, reaching $23.44. The company’s stock had a trading volume of 845,462 shares, compared to its average volume of 665,119. The company has a current ratio of 0.15, a quick ratio of 0.15 and a debt-to-equity ratio of 0.51. The company has a 50 day moving average price of $22.78 and a 200 day moving average price of $22.31. Capital Southwest has a one year low of $19.37 and a one year high of $24.43. The company has a market cap of $1.41 billion, a price-to-earnings ratio of 12.95 and a beta of 0.71.

Capital Southwest Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be issued a $0.1934 dividend. This represents a c) dividend on an annualized basis and a dividend yield of 9.9%. The ex-dividend date is Monday, June 15th. Capital Southwest’s payout ratio is presently 128.18%.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Zuckerman Investment Group LLC increased its position in shares of Capital Southwest by 7.8% in the second quarter. Zuckerman Investment Group LLC now owns 460,375 shares of the asset manager’s stock worth $10,147,000 after acquiring an additional 33,355 shares in the last quarter. Franklin Resources Inc. raised its stake in Capital Southwest by 7.0% during the 3rd quarter. Franklin Resources Inc. now owns 311,230 shares of the asset manager’s stock valued at $6,803,000 after purchasing an additional 20,468 shares during the period. Raymond James Financial Inc. raised its stake in Capital Southwest by 5.7% during the 3rd quarter. Raymond James Financial Inc. now owns 302,853 shares of the asset manager’s stock valued at $6,620,000 after purchasing an additional 16,256 shares during the period. Goldman Sachs Group Inc. raised its stake in Capital Southwest by 246.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 257,672 shares of the asset manager’s stock valued at $5,751,000 after purchasing an additional 183,313 shares during the period. Finally, Marshall Wace LLP raised its stake in Capital Southwest by 71.4% during the 3rd quarter. Marshall Wace LLP now owns 252,245 shares of the asset manager’s stock valued at $5,514,000 after purchasing an additional 105,083 shares during the period. 23.42% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Separately, 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 research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $23.42.

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.