Capital Southwest (NASDAQ:CSWC) Cut to “Sell” at StockNews.com

StockNews.com downgraded shares of Capital Southwest (NASDAQ:CSWC) from a hold rating to a sell rating in a research report sent to investors on Tuesday morning.

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

Capital Southwest Trading Down 0.5 %

Shares of CSWC stock opened at $23.06 on Tuesday. Capital Southwest has a 12-month low of $20.68 and a 12-month high of $27.23. The company has a 50 day moving average of $22.42 and a 200-day moving average of $23.61. The firm has a market cap of $1.17 billion, a P/E ratio of 16.35 and a beta of 1.24. The company has a quick ratio of 0.18, a current ratio of 0.18 and a debt-to-equity ratio of 0.64.

Capital Southwest (NASDAQ:CSWC) last released its quarterly earnings results on Monday, February 3rd. The asset manager reported $0.63 EPS for the quarter, beating analysts’ consensus estimates of $0.62 by $0.01. Capital Southwest had a net margin of 33.49% and a return on equity of 15.18%. Sell-side analysts anticipate that Capital Southwest will post 2.54 earnings per share for the current year.

Capital Southwest Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Friday, March 14th will be paid a dividend of $0.58 per share. The ex-dividend date of this dividend is Friday, March 14th. This represents a $2.32 dividend on an annualized basis and a dividend yield of 10.06%. Capital Southwest’s dividend payout ratio is presently 164.54%.

Institutional Investors Weigh In On Capital Southwest

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Van ECK Associates Corp boosted its holdings in Capital Southwest by 3.3% in the fourth quarter. Van ECK Associates Corp now owns 1,190,204 shares of the asset manager’s stock worth $25,970,000 after acquiring an additional 38,051 shares in the last quarter. Balyasny Asset Management L.P. purchased a new stake in shares of Capital Southwest during the fourth quarter worth about $21,846,000. Sanders Morris Harris LLC raised its holdings in shares of Capital Southwest by 28.0% during the fourth quarter. Sanders Morris Harris LLC now owns 814,584 shares of the asset manager’s stock valued at $17,579,000 after acquiring an additional 178,420 shares during the last quarter. Two Sigma Advisers LP raised its stake in Capital Southwest by 17.3% in the 4th quarter. Two Sigma Advisers LP now owns 774,600 shares of the asset manager’s stock valued at $16,902,000 after purchasing an additional 114,000 shares during the last quarter. Finally, Two Sigma Investments LP raised its holdings in Capital Southwest by 42.2% in the 4th quarter. Two Sigma Investments LP now owns 673,778 shares of the asset manager’s stock valued at $14,702,000 after acquiring an additional 200,060 shares during the last quarter. 23.42% of the stock is owned by 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.