Insider Buying: Capital Southwest (NASDAQ:CSWC) Director Buys $49,996.80 in Stock

Capital Southwest Corporation (NASDAQ:CSWC) 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 bought at an average price 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 trade represents a 10.50% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Capital Southwest Trading Up 0.7%

CSWC traded up $0.17 on Thursday, hitting $23.30. 478,291 shares of the company were exchanged, compared to its average volume of 583,489. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.17 and a current ratio of 0.17. The firm has a fifty day simple moving average of $24.27 and a two-hundred day simple moving average of $23.60. The stock has a market capitalization of $1.48 billion, a PE ratio of 12.87 and a beta of 0.71. Capital Southwest Corporation has a 12 month low of $19.37 and a 12 month high of $25.75.

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

Capital Southwest Announces Dividend

The company also recently declared a monthly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Tuesday, December 15th will be issued a $0.1934 dividend. This represents a $2.32 dividend on an annualized basis and a yield of 10.0%. The ex-dividend date of this dividend is Tuesday, December 15th. Capital Southwest’s dividend payout ratio (DPR) is 128.18%.

Analyst Ratings Changes

CSWC has been the topic of several recent analyst reports. Weiss Ratings raised Capital Southwest from a “buy (b-)” rating to a “buy (b)” rating in a research note on Monday. B. Riley Financial increased their price objective on Capital Southwest from $24.50 to $25.50 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Citizens Jmp lifted their price objective on Capital Southwest from $25.00 to $26.00 and gave the stock a “market outperform” rating in a research report on Wednesday, August 5th. Finally, Citigroup reissued a “market outperform” rating on shares of Capital Southwest in a research note on Wednesday, August 5th. Six investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $23.60.

Institutional Investors Weigh In On Capital Southwest

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Confluence Investment Management LLC raised its holdings in Capital Southwest by 9.7% in the third quarter. Confluence Investment Management LLC now owns 104,570 shares of the asset manager’s stock worth $2,419,000 after purchasing an additional 9,208 shares in the last quarter. Sequoia Financial Advisors LLC bought a new stake in shares of Capital Southwest during the 2nd quarter valued at $210,000. Arlington Capital Management Inc. grew its position in shares of Capital Southwest by 12.2% in the 2nd quarter. Arlington Capital Management Inc. now owns 24,202 shares of the asset manager’s stock worth $575,000 after buying an additional 2,637 shares during the period. Squarepoint Ops LLC grew its position in shares of Capital Southwest by 12.5% in the 2nd quarter. Squarepoint Ops LLC now owns 10,845 shares of the asset manager’s stock worth $258,000 after buying an additional 1,208 shares during the period. Finally, Allworth Financial LP increased its stake in shares of Capital Southwest by 16.9% in the 2nd quarter. Allworth Financial LP now owns 6,535 shares of the asset manager’s stock worth $155,000 after acquiring an additional 947 shares in the last quarter. 23.42% of the stock is owned by hedge funds and other institutional investors.

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.