Capital Southwest (CSWC) Cut to “Buy” at BidaskClub

BidaskClub lowered shares of Capital Southwest (NASDAQ:CSWC) from a strong-buy rating to a buy rating in a research note issued to investors on Thursday morning.

Separately, National Securities reiterated a buy rating and set a $22.00 target price on shares of Capital Southwest in a report on Wednesday, February 7th. Three analysts have rated the stock with a hold rating and five have given a buy rating to the company. The stock presently has an average rating of Buy and a consensus price target of $20.00.

CSWC stock opened at $16.89 on Thursday. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.46 and a current ratio of 0.46. The stock has a market cap of $268.22, a price-to-earnings ratio of 27.69 and a beta of 0.30. Capital Southwest has a 1-year low of $14.85 and a 1-year high of $18.00.

Capital Southwest (NASDAQ:CSWC) last posted its earnings results on Monday, February 5th. The asset manager reported $0.29 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.26 by $0.03. The firm had revenue of $9.02 million for the quarter, compared to analyst estimates of $8.90 million. Capital Southwest had a return on equity of 5.46% and a net margin of 91.90%. analysts predict that Capital Southwest will post 1.02 earnings per share for the current year.

The company also recently declared a quarterly dividend, which was paid on Monday, April 2nd. Shareholders of record on Thursday, March 15th were paid a $0.28 dividend. This is an increase from Capital Southwest’s previous quarterly dividend of $0.26. The ex-dividend date of this dividend was Wednesday, March 14th. This represents a $1.12 annualized dividend and a dividend yield of 6.63%. Capital Southwest’s dividend payout ratio (DPR) is currently 183.61%.

In other news, Director John H. Wilson purchased 3,000 shares of the company’s stock in a transaction on Friday, March 23rd. The shares were purchased at an average price of $17.10 per share, with a total value of $51,300.00. Following the purchase, the director now directly owns 20,000 shares of the company’s stock, valued at approximately $342,000. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director Thomas Duane Morgan purchased 3,050 shares of the company’s stock in a transaction on Thursday, February 8th. The stock was purchased at an average cost of $16.39 per share, for a total transaction of $49,989.50. Following the purchase, the director now directly owns 4,395 shares in the company, valued at $72,034.05. The disclosure for this purchase can be found here. Insiders acquired a total of 6,750 shares of company stock worth $112,658 in the last three months. Company insiders own 5.90% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in CSWC. Kennedy Capital Management Inc. raised its stake in shares of Capital Southwest by 19.8% in the 4th quarter. Kennedy Capital Management Inc. now owns 440,646 shares of the asset manager’s stock valued at $7,293,000 after purchasing an additional 72,761 shares during the period. Ariel Investments LLC raised its stake in shares of Capital Southwest by 4.7% in the 4th quarter. Ariel Investments LLC now owns 1,008,803 shares of the asset manager’s stock valued at $16,696,000 after purchasing an additional 45,077 shares during the period. River Road Asset Management LLC raised its stake in shares of Capital Southwest by 3.1% in the 4th quarter. River Road Asset Management LLC now owns 867,460 shares of the asset manager’s stock valued at $14,356,000 after purchasing an additional 26,330 shares during the period. Zuckerman Investment Group LLC raised its stake in shares of Capital Southwest by 1.8% in the 4th quarter. Zuckerman Investment Group LLC now owns 1,380,941 shares of the asset manager’s stock valued at $22,855,000 after purchasing an additional 24,246 shares during the period. Finally, Walter & Keenan Financial Consulting Co. MI ADV acquired a new stake in shares of Capital Southwest in the 4th quarter valued at about $149,000. 56.64% of the stock is currently owned by hedge funds and other institutional investors.

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Capital Southwest Company Profile

Capital Southwest Corporation is a business development company specializing in credit and private equity and venture capital investments in middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, recapitalizations and growth capital investments. It does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing.

Analyst Recommendations for Capital Southwest (NASDAQ:CSWC)

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