Capital Southwest (NASDAQ:CSWC) Sees Strong Trading Volume Following Earnings Beat

Capital Southwest Co. (NASDAQ:CSWCGet Free Report) saw unusually-high trading volume on Wednesday following a better than expected earnings announcement. Approximately 575,206 shares were traded during trading, an increase of 60% from the previous session’s volume of 359,890 shares.The stock last traded at $24.85 and had previously closed at $25.66.

The asset manager reported $0.70 EPS for the quarter, topping the consensus estimate of $0.66 by $0.04. The business had revenue of $48.57 million during the quarter, compared to analyst estimates of $45.12 million. Capital Southwest had a net margin of 52.16% and a return on equity of 16.40%. During the same quarter in the prior year, the firm earned $0.62 earnings per share.

Capital Southwest Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, March 29th. Shareholders of record on Friday, March 15th will be given a $0.63 dividend. This represents a $2.52 annualized dividend and a yield of 10.26%. The ex-dividend date of this dividend is Thursday, March 14th. Capital Southwest’s dividend payout ratio (DPR) is 97.02%.

Analysts Set New Price Targets

CSWC has been the subject of several analyst reports. StockNews.com assumed coverage on Capital Southwest in a research report on Thursday, October 5th. They set a “hold” rating for the company. Raymond James lifted their price objective on shares of Capital Southwest from $24.00 to $26.50 and gave the company an “outperform” rating in a research note on Wednesday. Finally, B. Riley increased their target price on shares of Capital Southwest from $23.50 to $24.00 and gave the company a “neutral” rating in a research report on Wednesday. Three analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $22.88.

Read Our Latest Research Report on CSWC

Institutional Trading of Capital Southwest

Institutional investors have recently modified their holdings of the company. Raymond James & Associates grew its holdings in Capital Southwest by 5.2% during the first quarter. Raymond James & Associates now owns 35,257 shares of the asset manager’s stock worth $837,000 after acquiring an additional 1,750 shares during the period. Cambridge Investment Research Advisors Inc. grew its stake in shares of Capital Southwest by 3.1% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 25,826 shares of the asset manager’s stock worth $613,000 after purchasing an additional 777 shares during the last quarter. PNC Financial Services Group Inc. raised its holdings in shares of Capital Southwest by 3.1% in the 1st quarter. PNC Financial Services Group Inc. now owns 20,583 shares of the asset manager’s stock worth $488,000 after purchasing an additional 611 shares in the last quarter. Bank of Montreal Can acquired a new stake in Capital Southwest during the first quarter valued at approximately $448,000. Finally, Great West Life Assurance Co. Can boosted its holdings in Capital Southwest by 10.3% during the first quarter. Great West Life Assurance Co. Can now owns 7,765 shares of the asset manager’s stock worth $196,000 after buying an additional 726 shares in the last quarter. Institutional investors and hedge funds own 20.58% of the company’s stock.

Capital Southwest Stock Performance

The stock has a market cap of $981.17 million, a price-to-earnings ratio of 10.45 and a beta of 1.23. The company’s 50-day simple moving average is $23.97 and its 200-day simple moving average is $22.58. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 0.57.

Capital Southwest Company Profile

(Get Free Report)

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.

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