Key Points
- Insider buying: Capital Southwest Director William Thomas III purchased 2,170 shares at an average price of $23.04, investing nearly $50,000 and increasing his stake by 10.5%.
- Financial performance: The company reported quarterly earnings of $0.58 per share, topping estimates by $0.02, while revenue of $61.05 million was slightly below expectations.
- Dividend and outlook: Capital Southwest declared a monthly dividend of $0.1934, equivalent to an annualized yield of about 10%. Analysts maintain a “Moderate Buy” consensus, with an average price target of $23.60.
Capital Southwest Corporation (NASDAQ:CSWC - Get Free Report) Director William Thomas III acquired 2,170 shares of the company's stock in a transaction on Thursday, October 1st. The stock was bought at an average price of $23.04 per share, for a total transaction of $49,996.80. Following the purchase, the director owned 22,842 shares in the company, valued at approximately $526,279.68. This trade represents a 10.50% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website.
Capital Southwest Trading Up 0.7%
Shares of NASDAQ:CSWC opened at $23.30 on Friday. The firm has a fifty day moving average of $24.27 and a two-hundred day moving average of $23.60. The firm has a market capitalization of $1.48 billion, a P/E 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. 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 (NASDAQ:CSWC - Get Free Report) last posted its quarterly earnings results on Monday, August 3rd. The asset manager reported $0.58 EPS for the quarter, beating the consensus estimate 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 analysts' expectations of $61.22 million. During the same period in the previous year, the company posted $0.61 EPS. On average, equities analysts expect that Capital Southwest Corporation will post 2.27 EPS for the current fiscal year.
Capital Southwest Announces Dividend
The company also recently announced a monthly dividend, which will be paid on Thursday, December 31st. Shareholders 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 dividend on an annualized basis and a yield of 10.0%. Capital Southwest's payout ratio is 128.18%.
Institutional Trading of Capital Southwest
A number of institutional investors and hedge funds have recently modified their holdings of the company. Empowered Funds LLC bought a new position in shares of Capital Southwest in the first quarter worth about $13,694,000. Empirical Finance LLC bought a new stake in Capital Southwest during the 1st quarter valued at approximately $13,689,000. Legal & General Group Plc acquired a new stake in Capital Southwest in the 2nd quarter valued at approximately $11,886,000. Van ECK Associates Corp grew its holdings 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 valued at $36,289,000 after buying an additional 399,106 shares during the last quarter. Finally, Melia Wealth LLC bought a new position in Capital Southwest in the 2nd quarter worth approximately $8,979,000. 23.42% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In
A number of equities research analysts have recently weighed in on CSWC shares. Citigroup reaffirmed a "market outperform" rating on shares of Capital Southwest in a research note on Wednesday, August 5th. Citizens Jmp increased 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. B. Riley Financial raised their price objective on shares of Capital Southwest from $24.50 to $25.50 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Finally, Weiss Ratings upgraded shares of Capital Southwest from a "buy (b-)" rating to a "buy (b)" rating in a research note on Monday. Six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $23.60.
Check Out Our Latest Stock Report on CSWC
Capital Southwest Company Profile
(
Get Free Report)
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.
Featured Stories
This instant news alert was generated by narrative science technology and financial data from InsiderTrades.com in order to provide readers with the fastest and most accurate reporting. Please send any questions or comments about this story to [email protected].
