Capital Southwest (NASDAQ:CSWC) Releases Q2 2027 Earnings Guidance

Capital Southwest (NASDAQ:CSWC) updated its second quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 0.560-0.570 for the period, compared to the consensus estimate of 0.550.

Capital Southwest Stock Down 0.1%

Capital Southwest stock traded down $0.02 during midday trading on Wednesday, reaching $22.37. The company’s stock had a trading volume of 491,811 shares, compared to its average volume of 645,340. The stock’s 50-day simple moving average is $24.05 and its 200-day simple moving average is $23.74. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.17 and a quick ratio of 0.17. Capital Southwest has a 52-week low of $19.91 and a 52-week high of $25.75. The stock has a market capitalization of $1.43 billion, a P/E ratio of 12.36 and a beta of 0.71.

Capital Southwest (NASDAQ:CSWC) last issued its quarterly earnings results on Monday, August 3rd. The asset manager reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.02. Capital Southwest had a return on equity of 13.88% and a net margin of 46.68%. The business had revenue of $61.05 million during the quarter, compared to the consensus estimate of $61.22 million. During the same quarter last year, the company earned $0.61 earnings per share. On average, sell-side analysts expect that Capital Southwest will post 2.27 EPS for the current year.

Capital Southwest Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 15th will be given a $0.1934 dividend. This represents a $2.32 annualized dividend and a dividend yield of 10.4%. The ex-dividend date of this dividend is Tuesday, December 15th. Capital Southwest’s dividend payout ratio (DPR) is presently 128.18%.

Analyst Ratings Changes

CSWC has been the subject of a number of recent analyst reports. UBS Group lifted their target price on shares of Capital Southwest from $23.50 to $24.00 and gave the stock a “neutral” rating in a research note on Friday, October 9th. Citizens Jmp boosted their target price on shares of Capital Southwest from $25.00 to $26.00 and gave the stock a “market outperform” rating in a research report on Wednesday, August 5th. Weiss Ratings lowered shares of Capital Southwest from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, October 13th. B. Riley Financial upped their price target on shares of Capital Southwest from $24.50 to $25.50 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Capital Southwest in a report on Wednesday, August 5th. Six investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $24.10.

Insider Buying and Selling

In other news, Director William Thomas, III purchased 2,170 shares of the company’s stock in a transaction on Thursday, October 1st. The shares were acquired at an average price of $23.04 per share, for a total transaction of $49,996.80. Following the purchase, the director owned 22,842 shares in the company, valued at $526,279.68. This trade represents a 10.50% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 2.70% of the company’s stock.

About Capital Southwest

Capital Southwest Corporation (NASDAQ: CSWC) is a business development company that provides financing to middle-market and lower-middle-market businesses in the United States. The company primarily invests in privately held companies that may require capital to support growth, acquisitions, recapitalizations, ownership transitions, or other strategic initiatives.

Its investment portfolio generally consists of senior secured loans, including first-lien and second-lien debt, as well as subordinated debt and equity investments.