Capital Southwest Corporation (NASDAQ:CSWC) Stock Has Average Target Price of $24.10 According to Brokerages

Shares of Capital Southwest Corporation (NASDAQ:CSWC) have been assigned an average recommendation of “Moderate Buy” from the eight ratings firms that are currently covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average 1 year target price among analysts that have issued ratings on the stock in the last year is $24.10.

A number of equities research analysts have issued reports on CSWC shares. UBS Group raised their price target on Capital Southwest from $23.50 to $24.00 and gave the company a “neutral” rating in a research report on Friday, October 9th. Citigroup reiterated a “market outperform” rating on shares of Capital Southwest in a research note on Wednesday, August 5th. Weiss Ratings cut Capital Southwest from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday. B. Riley Financial increased their target price on Capital Southwest from $24.50 to $25.50 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Finally, Citizens Jmp raised their target price on Capital Southwest from $25.00 to $26.00 and gave the company a “market outperform” rating in a report on Wednesday, August 5th.

Capital Southwest Stock Performance

Shares of NASDAQ CSWC opened at $23.08 on Monday. The business’s 50-day simple moving average is $24.15 and its 200-day simple moving average is $23.72. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.17 and a current ratio of 0.17. Capital Southwest has a 52 week low of $19.91 and a 52 week high of $25.75. The firm has a market cap of $1.47 billion, a price-to-earnings ratio of 9.97 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 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.02. The firm had revenue of $61.05 million during the quarter, compared to analyst estimates of $61.22 million. Capital Southwest had a return on equity of 13.88% and a net margin of 46.68%. During the same period in the previous year, the company earned $0.61 EPS. As a group, equities research analysts expect that Capital Southwest will post 2.27 earnings per share for the current fiscal year.

Capital Southwest Announces Dividend

The business 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 $0.1934 dividend. The ex-dividend date is Tuesday, December 15th. This represents a $2.32 annualized dividend and a dividend yield of 10.1%. Capital Southwest’s dividend payout ratio (DPR) is presently 128.18%.

Insider Activity

In related news, Director William Thomas, III bought 2,170 shares of the company’s stock in a transaction that occurred on Thursday, October 1st. The shares were acquired at an average price of $23.04 per share, with a total value of $49,996.80. Following the completion of the transaction, the director owned 22,842 shares of the company’s stock, valued at $526,279.68. The trade was a 10.50% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 2.70% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Columbus Macro LLC increased its holdings in Capital Southwest by 6.2% in the 3rd quarter. Columbus Macro LLC now owns 398,048 shares of the asset manager’s stock valued at $9,207,000 after buying an additional 23,177 shares during the period. Womack Financial LLC lifted its holdings in shares of Capital Southwest by 3.8% during the 3rd quarter. Womack Financial LLC now owns 239,347 shares of the asset manager’s stock worth $5,536,000 after acquiring an additional 8,809 shares during the period. Confluence Investment Management LLC boosted its position in shares of Capital Southwest by 9.7% during the 3rd quarter. Confluence Investment Management LLC now owns 104,570 shares of the asset manager’s stock valued at $2,419,000 after acquiring an additional 9,208 shares in the last quarter. Sequoia Financial Advisors LLC acquired a new stake in shares of Capital Southwest during the 2nd quarter valued at about $210,000. Finally, Arlington Capital Management Inc. boosted its position in shares of Capital Southwest by 12.2% during the 2nd quarter. Arlington Capital Management Inc. now owns 24,202 shares of the asset manager’s stock valued at $575,000 after acquiring an additional 2,637 shares in the last quarter. Institutional investors and hedge funds own 23.42% of the company’s stock.

Capital Southwest Company 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.