Capital Southwest Corporation (NASDAQ:CSWC) Stock Has Consensus Target Price of $25.17

Capital Southwest Corporation (NASDAQ:CSWC) has been assigned a consensus recommendation of “Moderate Buy” from the six ratings firms that are covering the stock, MarketBeat reports. Two research analysts have rated the stock with a hold rating and four have given a buy rating to the company. The average 1 year price objective among brokers that have covered the stock in the last year is $25.17.

A number of analysts have issued reports on the company. Citigroup reissued 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 note on Tuesday, October 13th. UBS Group upped their target price on Capital Southwest from $23.50 to $24.00 and gave the stock a “neutral” rating in a research report on Friday, October 9th. Citizens Jmp increased their target price on Capital Southwest from $25.00 to $26.00 and gave the company a “market outperform” rating in a research note on Wednesday, August 5th. Finally, B. Riley Financial raised their target price on Capital Southwest from $24.50 to $25.50 and gave the company a “buy” rating in a report on Wednesday, August 5th.

Capital Southwest Price Performance

CSWC opened at $23.26 on Friday. The stock has a market capitalization of $1.55 billion, a P/E ratio of 13.68 and a beta of 0.67. Capital Southwest has a 12 month low of $20.11 and a 12 month high of $25.75. The business has a 50 day simple moving average of $23.54 and a 200-day simple moving average of $23.40. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.11 and a quick ratio of 0.11.

Capital Southwest (NASDAQ:CSWC) last released its quarterly earnings results on Monday, November 2nd. The asset manager reported $0.56 earnings per share for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.01). Capital Southwest had a return on equity of 13.76% and a net margin of 43.06%. The firm had revenue of $67.16 million during the quarter, compared to analyst estimates of $65.61 million. On average, equities analysts anticipate that Capital Southwest will post 2.27 earnings per share for the current fiscal year.

Capital Southwest Dividend Announcement

The company also recently disclosed a monthly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Tuesday, December 15th will be given a $0.1934 dividend. The ex-dividend date of this dividend is Tuesday, December 15th. This represents a $2.32 annualized dividend and a yield of 10.0%. Capital Southwest’s dividend payout ratio (DPR) is 136.47%.

Insider Activity

In other news, Director William Thomas, III purchased 2,170 shares of the company’s stock in a transaction that occurred on Thursday, October 1st. The shares were purchased at an average price of $23.04 per share, with a total value of $49,996.80. Following the purchase, the director directly owned 22,842 shares of the company’s stock, valued at approximately $526,279.68. This represents a 10.50% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 2.70% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the company. Van ECK Associates Corp grew its position in Capital Southwest by 35.4% in the 2nd quarter. Van ECK Associates Corp now owns 1,526,667 shares of the asset manager’s stock worth $36,289,000 after purchasing an additional 399,106 shares during the last quarter. Empowered Funds LLC acquired a new position in Capital Southwest during the first quarter worth about $13,694,000. Empirical Finance LLC bought a new stake in shares of Capital Southwest in the 1st quarter worth approximately $13,689,000. Legal & General Group Plc acquired a new stake in shares of Capital Southwest during the 2nd quarter valued at $11,886,000. Finally, Columbus Macro LLC increased its stake in Capital Southwest by 6.2% in the 3rd quarter. Columbus Macro LLC now owns 398,048 shares of the asset manager’s stock worth $9,207,000 after purchasing an additional 23,177 shares in the last quarter. Institutional investors own 23.42% of the company’s stock.

Capital Southwest Company Profile

Capital Southwest Corporation (NASDAQ: CSWC) is a business development company that provides financing to middle-market and lower-middle-market businesses in the United States. The company primarily invests in privately held companies that may require capital to support growth, acquisitions, recapitalizations, ownership transitions, or other strategic initiatives.

Its investment portfolio generally consists of senior secured loans, including first-lien and second-lien debt, as well as subordinated debt and equity investments.