StockNews.com Downgrades Capital Southwest (NASDAQ:CSWC) to Sell

StockNews.com cut shares of Capital Southwest (NASDAQ:CSWC) from a hold rating to a sell rating in a report released on Friday.

Separately, B. Riley raised their target price 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

Shares of NASDAQ:CSWC opened at $22.97 on Friday. The company has a debt-to-equity ratio of 0.35, a current ratio of 0.16 and a quick ratio of 0.16. Capital Southwest has a 1 year low of $20.68 and a 1 year high of $27.23. The firm has a market capitalization of $1.10 billion, a PE ratio of 14.01 and a beta of 1.24. The business’s 50 day moving average price is $22.20 and its 200-day moving average price is $23.79.

Capital Southwest (NASDAQ:CSWC) last announced its earnings results on Monday, February 3rd. The asset manager reported $0.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.01. Capital Southwest had a net margin of 37.77% and a return on equity of 15.54%. As a group, equities research analysts expect that Capital Southwest will post 2.55 earnings per share for the current fiscal year.

Capital Southwest Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Friday, March 14th will be issued a $0.58 dividend. This represents a $2.32 dividend on an annualized basis and a dividend yield of 10.10%. The ex-dividend date is Friday, March 14th. Capital Southwest’s dividend payout ratio is currently 141.46%.

Hedge Funds Weigh In On Capital Southwest

A number of institutional investors have recently bought and sold shares of CSWC. Promus Capital LLC purchased a new stake in shares of Capital Southwest in the 4th quarter valued at approximately $30,000. Quarry LP acquired a new position in Capital Southwest in the third quarter valued at approximately $35,000. Northwestern Mutual Wealth Management Co. purchased a new position in Capital Southwest in the second quarter worth approximately $104,000. Rialto Wealth Management LLC acquired a new stake in Capital Southwest during the fourth quarter worth $105,000. Finally, Nisa Investment Advisors LLC purchased a new stake in Capital Southwest in the third quarter valued at $106,000. 23.42% of the stock is owned by hedge funds and other institutional investors.

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.