Capital Southwest (NASDAQ:CSWC) Share Price Crosses Above Two Hundred Day Moving Average – Should You Sell?

Capital Southwest Corporation (NASDAQ:CSWC) passed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $22.06 and traded as high as $23.47. Capital Southwest shares last traded at $23.23, with a volume of 540,547 shares trading hands.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on CSWC shares. Weiss Ratings raised shares of Capital Southwest from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, January 28th. Noble Financial raised Capital Southwest to a “buy” rating in a research report on Wednesday, November 5th. Loop Capital reiterated a “buy” rating and issued a $23.00 price objective on shares of Capital Southwest in a research note on Wednesday, November 5th. Zacks Research upgraded Capital Southwest from a “strong sell” rating to a “hold” rating in a report on Monday, January 5th. Finally, Capital One Financial set a $22.00 target price on Capital Southwest in a research note on Tuesday, November 4th. Seven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $23.64.

Capital Southwest Stock Performance

The stock’s 50-day simple moving average is $22.63 and its 200 day simple moving average is $22.06. The company has a market capitalization of $1.40 billion, a PE ratio of 12.83 and a beta of 0.76. The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.15 and a current ratio of 0.15.

Capital Southwest (NASDAQ:CSWC) last released its quarterly earnings data on Monday, February 2nd. The asset manager reported $0.64 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.64. The business had revenue of $61.45 million during the quarter, compared to analysts’ expectations of $57.37 million. Capital Southwest had a net margin of 45.46% and a return on equity of 13.76%. During the same period in the previous year, the company earned $0.63 EPS. As a group, research analysts expect that Capital Southwest Corporation will post 2.54 earnings per share for the current fiscal year.

Capital Southwest Dividend Announcement

The firm also recently disclosed a monthly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be given a dividend of $0.1934 per share. This represents a c) annualized dividend and a dividend yield of 10.0%. The ex-dividend date of this dividend is Friday, March 13th. Capital Southwest’s dividend payout ratio is currently 128.18%.

Institutional Investors Weigh In On Capital Southwest

Hedge funds and other institutional investors have recently made changes to their positions in the business. Triumph Capital Management purchased a new stake in Capital Southwest during the third quarter worth approximately $28,000. Tower Research Capital LLC TRC increased its stake in Capital Southwest by 13,307.1% in the second quarter. Tower Research Capital LLC TRC now owns 1,877 shares of the asset manager’s stock valued at $41,000 after purchasing an additional 1,863 shares during the last quarter. Nomura Asset Management Co. Ltd. raised its holdings in Capital Southwest by 58.5% during the second quarter. Nomura Asset Management Co. Ltd. now owns 2,135 shares of the asset manager’s stock worth $47,000 after purchasing an additional 788 shares in the last quarter. State of Alaska Department of Revenue purchased a new stake in shares of Capital Southwest during the 3rd quarter worth approximately $48,000. Finally, First Horizon Advisors Inc. lifted its position in shares of Capital Southwest by 1,214.0% during the 2nd quarter. First Horizon Advisors Inc. now owns 2,628 shares of the asset manager’s stock worth $58,000 after buying an additional 2,428 shares during the last quarter. 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.