Capital Southwest (NASDAQ:CSWC) Sees Large Volume Increase on Earnings Beat

Shares of Capital Southwest Co. (NASDAQ:CSWC) saw an uptick in trading volume on Tuesday following a stronger than expected earnings report. 427,025 shares changed hands during mid-day trading, an increase of 3% from the previous session’s volume of 412,606 shares.The stock last traded at $22.98 and had previously closed at $22.28.

The asset manager reported $0.63 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.62 by $0.01. Capital Southwest had a return on equity of 15.54% and a net margin of 37.77%.

Capital Southwest Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 31st. Stockholders of record on Friday, March 14th will be given a dividend of $0.58 per share. This represents a $2.32 annualized dividend and a dividend yield of 10.19%. The ex-dividend date of this dividend is Friday, March 14th. Capital Southwest’s payout ratio is presently 164.54%.

Analyst Upgrades and Downgrades

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

Hedge Funds Weigh In On Capital Southwest

Several large investors have recently bought and sold shares of CSWC. Quarry LP purchased a new stake in shares of Capital Southwest in the third quarter valued at about $35,000. Northwestern Mutual Wealth Management Co. purchased a new stake in Capital Southwest in the 2nd quarter valued at about $104,000. Nisa Investment Advisors LLC bought a new position in shares of Capital Southwest during the 3rd quarter worth approximately $106,000. Hollencrest Capital Management boosted its stake 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 buying an additional 518 shares during the last quarter. Finally, Blue Trust Inc. grew its holdings in shares of Capital Southwest by 1,539.2% in the third quarter. Blue Trust Inc. now owns 7,147 shares of the asset manager’s stock valued at $186,000 after acquiring an additional 6,711 shares in the last quarter. 23.42% of the stock is currently owned by institutional investors.

Capital Southwest Price Performance

The stock has a 50-day moving average of $22.21 and a 200 day moving average of $23.80. The company has a market capitalization of $1.09 billion, a PE ratio of 13.88 and a beta of 1.24. The company has a quick ratio of 0.16, a current ratio of 0.16 and a debt-to-equity ratio of 0.35.

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.