Zacks Investment Research upgraded shares of Capital Southwest (NASDAQ:CSWC) from a hold rating to a buy rating in a research report sent to investors on Tuesday morning, Zacks.com reports. The brokerage currently has $24.00 price objective on the asset manager’s stock.
According to Zacks, “Capital Southwest Corporation is a venture capital investment company whose objective is to achieve capital appreciation through long-term investments in businesses believed to have favorable growth potential. The Company’s investments are focused on early-stage financings, expansion financings, management buyouts and recapitalizations in a broad range of industry segments. The portfolio is a composite of companies in which the Company has major interests as well as a number of developing companies and marketable securities of established publicly-owned companies. “
A number of other research analysts have also weighed in on CSWC. BidaskClub raised shares of Capital Southwest from a sell rating to a hold rating in a research note on Thursday, September 19th. National Securities initiated coverage on shares of Capital Southwest in a research note on Monday, September 23rd. They issued a buy rating and a $23.00 price target on the stock. Finally, ValuEngine lowered shares of Capital Southwest from a hold rating to a sell rating in a research note on Saturday, September 14th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and three have assigned a buy rating to the company. The company presently has an average rating of Hold and a consensus price target of $23.25.
Capital Southwest (NASDAQ:CSWC) last posted its earnings results on Monday, August 5th. The asset manager reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.01. Capital Southwest had a net margin of 53.87% and a return on equity of 8.27%. The business had revenue of $15.80 million for the quarter, compared to analyst estimates of $14.90 million. Equities analysts predict that Capital Southwest will post 1.73 EPS for the current year.
The business also recently declared a dividend, which was paid on Monday, September 30th. Investors of record on Monday, September 16th were paid a $0.50 dividend. The ex-dividend date was Friday, September 13th. Capital Southwest’s dividend payout ratio is presently 112.68%.
In related news, Director David R. Brooks purchased 2,500 shares of the firm’s stock in a transaction that occurred on Friday, August 30th. The shares were purchased at an average cost of $21.37 per share, with a total value of $53,425.00. Following the purchase, the director now owns 24,500 shares of the company’s stock, valued at approximately $523,565. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 6.80% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in the business. Navellier & Associates Inc raised its holdings in Capital Southwest by 14.0% in the 2nd quarter. Navellier & Associates Inc now owns 161,474 shares of the asset manager’s stock valued at $3,383,000 after acquiring an additional 19,822 shares during the last quarter. Virtus ETF Advisers LLC acquired a new stake in Capital Southwest in the 2nd quarter valued at about $2,124,000. Brasada Capital Management LP raised its holdings in Capital Southwest by 19.1% in the 2nd quarter. Brasada Capital Management LP now owns 89,030 shares of the asset manager’s stock valued at $1,862,000 after acquiring an additional 14,293 shares during the last quarter. Advisor Group Inc. raised its holdings in Capital Southwest by 2,108.0% in the 1st quarter. Advisor Group Inc. now owns 86,003 shares of the asset manager’s stock valued at $1,810,000 after acquiring an additional 82,108 shares during the last quarter. Finally, Russell Investments Group Ltd. raised its holdings in Capital Southwest by 74.1% in the 2nd quarter. Russell Investments Group Ltd. now owns 60,977 shares of the asset manager’s stock valued at $1,277,000 after acquiring an additional 25,955 shares during the last quarter. Institutional investors own 48.41% 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, 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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