Capital Southwest (NASDAQ:CSWC) Stock Breaks Below 200 Day Moving Average – Here’s What Happened

Capital Southwest Corporation (NASDAQ:CSWC)’s share price crossed below its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $23.56 and traded as low as $22.77. Capital Southwest shares last traded at $22.99, with a volume of 450,801 shares traded.

Wall Street Analysts Forecast Growth

CSWC has been the topic of a number of recent research reports. Weiss Ratings raised Capital Southwest from a “buy (b-)” rating to a “buy (b)” rating in a report on Monday. Citigroup reiterated a “market outperform” rating on shares of Capital Southwest in a research report on Wednesday, August 5th. Citizens Jmp boosted their price objective on shares of 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 upped their price objective on shares of Capital Southwest from $24.50 to $25.50 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Six research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, Capital Southwest currently has a consensus rating of “Moderate Buy” and an average price target of $23.60.

Capital Southwest Trading Down 0.7%

The company has a current ratio of 0.17, a quick ratio of 0.17 and a debt-to-equity ratio of 0.62. The business has a 50 day moving average price of $24.29 and a 200-day moving average price of $23.57. The firm has a market capitalization of $1.48 billion, a PE ratio of 12.75 and a beta of 0.70.

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

Capital Southwest Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Tuesday, December 15th will be given a dividend of $0.1934 per share. This represents a $2.32 annualized dividend and a dividend yield of 10.0%. The ex-dividend date is Tuesday, December 15th. Capital Southwest’s payout ratio is presently 128.18%.

Institutional Trading of Capital Southwest

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Van ECK Associates Corp grew its position 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. Sound Income Strategies LLC boosted its stake in shares of Capital Southwest by 2.0% during the 1st quarter. Sound Income Strategies LLC now owns 903,329 shares of the asset manager’s stock worth $19,810,000 after acquiring an additional 17,362 shares in the last quarter. Empowered Funds LLC purchased a new stake in shares of Capital Southwest during the 1st quarter worth approximately $13,694,000. Empirical Finance LLC acquired a new stake in shares of Capital Southwest in the 1st quarter worth approximately $13,689,000. Finally, Legal & General Group Plc purchased a new position in Capital Southwest in the 2nd quarter valued at approximately $11,886,000. Institutional investors and hedge funds own 23.42% of the company’s stock.

About Capital Southwest

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 invests primarily in privately held companies and seeks to support their growth, acquisitions, recapitalizations and other strategic initiatives.

Capital Southwest’s investment activities generally include first-lien and second-lien loans, unitranche financing, subordinated debt and, in some cases, equity investments.