Capital Southwest Co. (NASDAQ:CSWC) Short Interest Update

Capital Southwest Co. (NASDAQ:CSWC) saw a significant growth in short interest during the month of October. As of October 15th, there was short interest totalling 709,400 shares, a growth of 15.3% from the September 30th total of 615,000 shares. Based on an average trading volume of 214,000 shares, the days-to-cover ratio is currently 3.3 days.

Analyst Upgrades and Downgrades

Separately, B. Riley increased their price objective on shares of Capital Southwest from $24.00 to $24.50 and gave the company a “neutral” rating in a research report on Wednesday.

Capital Southwest Price Performance

CSWC stock opened at $24.40 on Thursday. The stock has a market cap of $1.12 billion, a price-to-earnings ratio of 11.85 and a beta of 1.24. Capital Southwest has a fifty-two week low of $21.15 and a fifty-two week high of $27.23. The company has a quick ratio of 0.12, a current ratio of 0.12 and a debt-to-equity ratio of 0.29. The business has a 50 day moving average price of $25.21 and a 200 day moving average price of $25.54.

Capital Southwest (NASDAQ:CSWC) last issued its earnings results on Monday, October 28th. The asset manager reported $0.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.65 by $0.01. Capital Southwest had a net margin of 38.92% and a return on equity of 15.70%. The business had revenue of $48.71 million during the quarter, compared to analysts’ expectations of $49.79 million. During the same quarter in the prior year, the business posted $0.69 EPS. Equities research analysts anticipate that Capital Southwest will post 2.47 earnings per share for the current fiscal year.

Capital Southwest Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 31st. Stockholders of record on Friday, December 13th will be issued a $0.63 dividend. This represents a $2.52 annualized dividend and a dividend yield of 10.33%. The ex-dividend date is Friday, December 13th. Capital Southwest’s payout ratio is currently 113.17%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. EntryPoint Capital LLC acquired a new stake in shares of Capital Southwest in the first quarter valued at approximately $28,000. Larson Financial Group LLC raised its position in Capital Southwest by 101.7% in the 1st quarter. Larson Financial Group LLC now owns 2,017 shares of the asset manager’s stock valued at $50,000 after purchasing an additional 1,017 shares during the last quarter. EverSource Wealth Advisors LLC acquired a new stake in Capital Southwest during the 2nd quarter worth $58,000. Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Capital Southwest during the second quarter worth about $104,000. Finally, Nisa Investment Advisors LLC purchased a new position in Capital Southwest in the 3rd quarter valued at $106,000. Hedge funds and other institutional investors own 23.42% of the company’s stock.

About Capital Southwest

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.