Capital Southwest (NASDAQ:CSWC) Reaches New 1-Year High – Here’s Why

Capital Southwest Corporation (NASDAQ:CSWC) shares hit a new 52-week high on Tuesday . The company traded as high as $24.45 and last traded at $24.1950, with a volume of 69147 shares changing hands. The stock had previously closed at $23.94.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on CSWC shares. B. Riley Financial increased their target price on Capital Southwest from $24.50 to $25.50 and gave the stock a “buy” rating in a research note on Wednesday. Citigroup reissued a “market outperform” rating on shares of Capital Southwest in a report on Wednesday. Weiss Ratings reiterated a “buy (b-)” rating on shares of Capital Southwest in a report on Thursday, June 18th. Finally, Citizens Jmp boosted their price objective on shares of Capital Southwest from $25.00 to $26.00 and gave the stock a “market outperform” rating in a report on Wednesday. Six equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $23.83.

Capital Southwest Price Performance

The company has a market capitalization of $1.56 billion, a price-to-earnings ratio of 13.49 and a beta of 0.69. The company has a fifty day simple moving average of $23.57 and a two-hundred day simple moving average of $23.16. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.11 and a current ratio of 0.17.

Capital Southwest Dividend Announcement

The firm also recently announced a monthly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be given a dividend of $0.1934 per share. The ex-dividend date is Tuesday, September 15th. This represents a c) annualized dividend and a yield of 9.5%. Capital Southwest’s dividend payout ratio is 122.11%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Royal Bank of Canada boosted its position in shares of 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 during the last quarter. Goldman Sachs Group Inc. raised its stake 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 worth $5,751,000 after purchasing an additional 183,313 shares during the period. Caxton Associates LLP purchased a new position in Capital Southwest during the first quarter worth approximately $318,000. Creative Planning acquired a new position in shares of Capital Southwest in the 2nd quarter valued at $201,000. Finally, Invesco Ltd. grew its stake in shares of Capital Southwest by 21.8% during the 2nd quarter. Invesco Ltd. now owns 34,003 shares of the asset manager’s stock valued at $749,000 after buying an additional 6,094 shares during the period. Institutional investors and hedge funds own 23.42% of the company’s stock.

About Capital Southwest

Capital Southwest (NASDAQ: CSWC) is a publicly traded investment firm structured as a business development company (BDC) that provides customized financing solutions to middle-market companies across the United States. The firm offers a spectrum of debt and equity capital, including senior secured loans, mezzanine debt, and both preferred and common equity investments. By partnering with corporate management teams, Capital Southwest seeks to support growth initiatives, recapitalizations, acquisitions, and ownership transitions.

Founded in 1961 and headquartered in Dallas, Texas, Capital Southwest has cultivated a track record of long-term partnerships with privately held businesses and select public companies.