Capital Southwest (NASDAQ:CSWC) Shares Break Above 200-Day Moving Average – Should You Sell?

Shares of Capital Southwest Corporation (NASDAQ:CSWC) passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $23.40 and traded as high as $23.45. Capital Southwest shares last traded at $23.41, with a volume of 307,066 shares traded.

Analysts Set New Price Targets

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

Capital Southwest Price Performance

The company has a debt-to-equity ratio of 0.62, a current ratio of 0.17 and a quick ratio of 0.17. The company’s 50-day moving average is $23.75 and its 200-day moving average is $23.40. The firm has a market capitalization of $1.49 billion, a price-to-earnings ratio of 12.93 and a beta of 0.71.

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

Capital Southwest Dividend Announcement

The company also recently disclosed a monthly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 15th will be issued a dividend of $0.1934 per share. This represents a $2.32 dividend on an annualized basis and a dividend yield of 9.9%. The ex-dividend date is Tuesday, December 15th. Capital Southwest’s dividend payout ratio is presently 128.18%.

Insider Activity at Capital Southwest

In other news, Director William Thomas, III bought 2,170 shares of the business’s stock in a transaction that occurred on Thursday, October 1st. The shares were acquired at an average cost of $23.04 per share, with a total value of $49,996.80. Following the transaction, the director owned 22,842 shares of the company’s stock, valued at $526,279.68. This represents a 10.50% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. 2.70% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Capital Southwest

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Van ECK Associates Corp raised its holdings in shares of Capital Southwest by 35.4% in the 2nd quarter. Van ECK Associates Corp now owns 1,526,667 shares of the asset manager’s stock worth $36,289,000 after purchasing an additional 399,106 shares during the period. Sound Income Strategies LLC lifted its stake in shares of Capital Southwest by 2.0% in the 1st quarter. Sound Income Strategies LLC now owns 903,329 shares of the asset manager’s stock valued at $19,810,000 after purchasing an additional 17,362 shares in the last quarter. Empowered Funds LLC acquired a new position in shares of Capital Southwest in the 1st quarter valued at about $13,694,000. Empirical Finance LLC purchased a new stake in shares of Capital Southwest during the 1st quarter worth about $13,689,000. Finally, Legal & General Group Plc purchased a new stake in shares of Capital Southwest during the 2nd quarter worth about $11,886,000. 23.42% of the stock is currently owned by institutional investors and hedge funds.

Capital Southwest Company Profile

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.