Capital Southwest (NASDAQ:CSWC) Sets New 1-Year Low – What’s Next?

Capital Southwest Co. (NASDAQ:CSWC)’s share price reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $20.83 and last traded at $20.88, with a volume of 893983 shares trading hands. The stock had previously closed at $21.25.

Wall Street Analyst Weigh In

Separately, B. Riley boosted their price target on shares of Capital Southwest from $24.00 to $24.50 and gave the stock a “neutral” rating in a research note on Wednesday, October 30th.

Capital Southwest Stock Performance

The company has a debt-to-equity ratio of 0.35, a current ratio of 0.16 and a quick ratio of 0.16. The stock has a 50 day moving average of $23.47 and a two-hundred day moving average of $24.75. The stock has a market capitalization of $1.00 billion, a PE ratio of 12.84 and a beta of 1.23.

Capital Southwest (NASDAQ:CSWC) last released its quarterly earnings results on Monday, October 28th. The asset manager reported $0.66 EPS for the quarter, beating the consensus estimate of $0.65 by $0.01. Capital Southwest had a net margin of 37.77% and a return on equity of 15.54%. The business had revenue of $48.71 million for the quarter, compared to analyst estimates of $49.79 million. During the same period in the prior year, the business earned $0.69 earnings per share. Research analysts expect that Capital Southwest Co. will post 2.54 EPS for the current fiscal year.

Capital Southwest Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 31st. Investors of record on Friday, December 13th will be issued a dividend of $0.63 per share. The ex-dividend date of this dividend is Friday, December 13th. This represents a $2.52 annualized dividend and a dividend yield of 11.97%. Capital Southwest’s payout ratio is 141.46%.

Institutional Investors Weigh In On Capital Southwest

Several large investors have recently added to or reduced their stakes in CSWC. Quarry LP bought a new stake in shares of Capital Southwest during the 3rd quarter worth about $35,000. EverSource Wealth Advisors LLC bought a new stake in Capital Southwest during the second quarter worth approximately $58,000. Northwestern Mutual Wealth Management Co. acquired a new position in Capital Southwest in the second quarter worth approximately $104,000. Nisa Investment Advisors LLC acquired a new stake in shares of Capital Southwest during the 3rd quarter valued at $106,000. Finally, Hollencrest Capital Management grew its holdings in shares of Capital Southwest by 8.6% in the 3rd quarter. Hollencrest Capital Management now owns 6,527 shares of the asset manager’s stock worth $165,000 after acquiring an additional 518 shares during the last quarter. 23.42% of the stock is owned by institutional investors and hedge funds.

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, industry consolidation, recapitalizations and growth capital investments.