Capital Southwest Co. (NASDAQ:CSWC) Announces $0.19 Monthly Dividend

Capital Southwest Co. (NASDAQ:CSWC) announced a monthly dividend on Thursday, June 12th, Wall Street Journal reports. Stockholders of record on Monday, September 15th will be paid a dividend of 0.1934 per share by the asset manager on Tuesday, September 30th. This represents a $2.32 dividend on an annualized basis and a dividend yield of 10.78%. The ex-dividend date is Monday, September 15th.

Capital Southwest has a payout ratio of 99.1% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Equities analysts expect Capital Southwest to earn $2.44 per share next year, which means the company should continue to be able to cover its $2.32 annual dividend with an expected future payout ratio of 95.1%.

Capital Southwest Price Performance

CSWC opened at $21.52 on Friday. The stock has a 50-day moving average price of $20.30 and a 200-day moving average price of $21.67. The company has a debt-to-equity ratio of 0.64, a current ratio of 0.18 and a quick ratio of 0.18. The firm has a market cap of $1.16 billion, a PE ratio of 15.26 and a beta of 0.94. Capital Southwest has a 1 year low of $17.46 and a 1 year high of $27.23.

Capital Southwest (NASDAQ:CSWC) last issued its earnings results on Wednesday, May 14th. The asset manager reported $0.54 earnings per share for the quarter, missing analysts’ consensus estimates of $0.62 by ($0.08). Capital Southwest had a return on equity of 15.18% and a net margin of 33.49%. The business had revenue of $52.34 million during the quarter, compared to analysts’ expectations of $52.83 million. During the same period last year, the firm posted $0.68 EPS. Sell-side analysts predict that Capital Southwest will post 2.54 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Capital Southwest

Institutional investors have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. boosted its position in Capital Southwest by 246.5% during the first quarter. Goldman Sachs Group Inc. now owns 257,672 shares of the asset manager’s stock valued at $5,751,000 after purchasing an additional 183,313 shares in the last quarter. Royal Bank of Canada boosted its holdings in Capital Southwest by 13.4% in the first quarter. Royal Bank of Canada now owns 69,139 shares of the asset manager’s stock worth $1,544,000 after acquiring an additional 8,188 shares in the last quarter. Finally, Caxton Associates LLP acquired a new stake in Capital Southwest in the first quarter worth about $318,000. Institutional investors own 23.42% of the company’s stock.

Analyst Ratings Changes

Several analysts recently weighed in on CSWC shares. Raymond James decreased their price target on Capital Southwest from $24.00 to $23.00 and set an “outperform” rating on the stock in a report on Friday, May 16th. Wall Street Zen upgraded Capital Southwest from a “sell” rating to a “hold” rating in a research note on Saturday, April 19th. Finally, UBS Group reduced their target price on Capital Southwest from $23.50 to $20.50 and set a “neutral” rating on the stock in a research note on Thursday, April 17th.

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.