Capital Southwest (NASDAQ:CSWC) Releases Quarterly Earnings Results, Misses Expectations By $0.03 EPS

by · The Cerbat Gem

Capital Southwest (NASDAQ:CSWC – Get Free Report) released its quarterly earnings results on Monday. The asset manager reported $0.54 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.03), FiscalAI reports. The company had revenue of $61.45 million during the quarter, compared to analyst estimates of $57.37 million. Capital Southwest had a net margin of 39.79% and a return on equity of 13.64%.

Capital Southwest Trading Down 1.2%

CSWC stock traded down $0.29 during midday trading on Monday, hitting $23.15. 820,549 shares of the company’s stock were exchanged, compared to its average volume of 664,220. Capital Southwest has a 1-year low of $17.46 and a 1-year high of $23.86. The company has a current ratio of 0.16, a quick ratio of 0.16 and a debt-to-equity ratio of 0.26. The stock has a market capitalization of $1.33 billion, a PE ratio of 14.38 and a beta of 0.76. The business has a 50-day simple moving average of $22.35 and a two-hundred day simple moving average of $22.05.

Capital Southwest Announces Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be given a $0.1934 dividend. This represents a c) annualized dividend and a yield of 10.0%. The ex-dividend date is Friday, March 13th. Capital Southwest’s dividend payout ratio is presently 144.10%.

Analyst Ratings Changes

Several equities research analysts have commented on the company. Loop Capital reiterated a “buy” rating and set a $23.00 price objective on shares of Capital Southwest in a research note on Wednesday, November 5th. Raymond James Financial downgraded Capital Southwest from an “outperform” rating to a “market perform” rating in a research note on Tuesday, October 7th. UBS Group dropped their target price on shares of Capital Southwest from $23.00 to $21.50 and set a “neutral” rating for the company in a report on Tuesday, October 14th. Zacks Research raised shares of Capital Southwest from a “strong sell” rating to a “hold” rating in a research note on Monday, January 5th. Finally, Weiss Ratings raised shares of Capital Southwest from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday. Seven research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $23.64.

Read Our Latest Stock Report on CSWC

Institutional Trading of Capital Southwest

A number of hedge funds and other institutional investors have recently modified their holdings of CSWC. Triumph Capital Management acquired a new position in Capital Southwest in the third quarter valued at about $28,000. Tower Research Capital LLC TRC lifted its holdings in shares of Capital Southwest by 13,307.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,877 shares of the asset manager’s stock worth $41,000 after acquiring an additional 1,863 shares during the last quarter. VPR Management LLC boosted its position in shares of Capital Southwest by 120.0% during the 3rd quarter. VPR Management LLC now owns 5,500 shares of the asset manager’s stock worth $120,000 after purchasing an additional 3,000 shares during the period. BNP Paribas Financial Markets acquired a new stake in Capital Southwest in the 3rd quarter valued at approximately $126,000. Finally, Creative Planning purchased a new stake in Capital Southwest in the second quarter valued at approximately $201,000. 23.42% of the stock is owned by institutional investors and hedge funds.

About Capital Southwest

(Get Free Report)

Capital Southwest (NASDAQ: CSWC) is a publicly traded investment firm structured as a business development company (BDC) that provides customized financing solutions to middle-market companies across the United States. The firm offers a spectrum of debt and equity capital, including senior secured loans, mezzanine debt, and both preferred and common equity investments. By partnering with corporate management teams, Capital Southwest seeks to support growth initiatives, recapitalizations, acquisitions, and ownership transitions.

Founded in 1961 and headquartered in Dallas, Texas, Capital Southwest has cultivated a track record of long-term partnerships with privately held businesses and select public companies.

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