Sound Income Strategies LLC Cuts Holdings in Capital Southwest Corporation $CSWC

Sound Income Strategies LLC lessened its stake in shares of Capital Southwest Corporation (NASDAQ:CSWC) by 6.2% during the 3rd quarter, according to its most recent 13F filing with the SEC. The firm owned 876,046 shares of the asset manager’s stock after selling 58,275 shares during the period. Capital Southwest makes up approximately 0.5% of Sound Income Strategies LLC’s holdings, making the stock its 28th largest holding. Sound Income Strategies LLC’s holdings in Capital Southwest were worth $20,797,000 at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of CSWC. Van ECK Associates Corp boosted its stake in Capital Southwest by 35.4% during the second quarter. Van ECK Associates Corp now owns 1,526,667 shares of the asset manager’s stock worth $36,289,000 after buying an additional 399,106 shares during the period. Empowered Funds LLC purchased a new stake in shares of Capital Southwest in the first quarter valued at $13,694,000. Empirical Finance LLC bought a new stake in shares of Capital Southwest in the 1st quarter worth about $13,689,000. Legal & General Group Plc bought a new stake in shares of Capital Southwest in the 2nd quarter worth about $11,886,000. Finally, Melia Wealth LLC purchased a new position in shares of Capital Southwest during the 2nd quarter worth about $8,979,000. 23.42% of the stock is currently owned by institutional investors.

Capital Southwest Stock Down 0.8%

NASDAQ:CSWC traded down $0.20 during mid-day trading on Friday, reaching $23.54. The company’s stock had a trading volume of 420,613 shares, compared to its average volume of 648,996. The company has a quick ratio of 0.17, a current ratio of 0.17 and a debt-to-equity ratio of 0.62. Capital Southwest Corporation has a 1 year low of $19.37 and a 1 year high of $25.75. The stock has a fifty day moving average of $24.27 and a 200-day moving average of $23.66. The firm has a market capitalization of $1.50 billion, a PE ratio of 13.01 and a beta of 0.71.

Capital Southwest (NASDAQ:CSWC) last posted its earnings results on Monday, August 3rd. The asset manager reported $0.58 EPS for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. Capital Southwest had a net margin of 46.68% and a return on equity of 13.88%. The business had revenue of $61.05 million for the quarter, compared to the consensus estimate of $61.22 million. During the same quarter last year, the firm posted $0.61 EPS. Equities research analysts forecast that Capital Southwest Corporation will post 2.27 earnings per share for the current year.

Capital Southwest Announces Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 15th will be paid a dividend of $0.1934 per share. The ex-dividend date is Tuesday, December 15th. This represents a $2.32 dividend on an annualized basis and a dividend yield of 9.9%. Capital Southwest’s dividend payout ratio (DPR) is currently 128.18%.

Wall Street Analyst Weigh In

Several equities analysts recently commented on CSWC shares. B. Riley Financial upped their price target on shares of Capital Southwest from $24.50 to $25.50 and gave the company a “buy” rating in a report on Wednesday, August 5th. Citigroup restated a “market outperform” rating on shares of Capital Southwest in a research report on Wednesday, August 5th. Weiss Ratings raised shares of Capital Southwest from a “buy (b-)” rating to a “buy (b)” rating in a research note on Monday, September 28th. UBS Group boosted their price target on Capital Southwest from $23.50 to $24.00 and gave the company a “neutral” rating in a report on Friday. Finally, Citizens Jmp raised their price objective on Capital Southwest from $25.00 to $26.00 and gave the stock a “market outperform” rating in a report on Wednesday, August 5th. Six equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $24.10.

Insider Activity

In other Capital Southwest news, Director William Thomas, III acquired 2,170 shares of the business’s stock in a transaction that occurred on Thursday, October 1st. The shares were bought at an average cost of $23.04 per share, with a total value of $49,996.80. Following the completion of the acquisition, the director directly owned 22,842 shares in the company, valued at $526,279.68. This represents a 10.50% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 2.70% of the company’s stock.

Capital Southwest Profile

Capital Southwest Corporation (NASDAQ: CSWC) is an internally managed business development company (BDC) that provides financing and investment solutions to middle-market companies. The company primarily invests in privately held businesses through secured debt, including first-lien, second-lien and unitranche loans, as well as subordinated debt and equity investments.

Capital Southwest generally focuses on established lower-middle-market companies in the United States. Its portfolio companies operate across a range of industries, and the company seeks to support acquisitions, recapitalizations, growth initiatives and other strategic or general corporate purposes through customized financing arrangements.

Founded in 1961, Capital Southwest has a long history as an investment company and operates under the regulatory framework governing BDCs.