SMH Capital Advisors Inc. Sells 1,205 Shares of Capital Southwest Co. (NASDAQ:CSWC)

SMH Capital Advisors Inc. decreased its position in shares of Capital Southwest Co. (NASDAQ:CSWC) by 6.9% during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 16,143 shares of the asset manager’s stock after selling 1,205 shares during the quarter. Capital Southwest makes up 1.3% of SMH Capital Advisors Inc.’s holdings, making the stock its 15th largest holding. SMH Capital Advisors Inc.’s holdings in Capital Southwest were worth $421,000 at the end of the most recent quarter.

A number of other hedge funds have also recently made changes to their positions in CSWC. Confluence Investment Management LLC acquired a new position in Capital Southwest in the first quarter valued at approximately $2,391,000. Muzinich & Co. Inc. lifted its stake in shares of Capital Southwest by 130.2% in the 4th quarter. Muzinich & Co. Inc. now owns 74,979 shares of the asset manager’s stock valued at $1,777,000 after purchasing an additional 42,412 shares during the last quarter. Sanders Morris Harris LLC acquired a new position in Capital Southwest during the 1st quarter worth about $16,079,000. Legacy Capital Wealth Partners LLC acquired a new position in Capital Southwest during the 2nd quarter worth about $1,775,000. Finally, Avantax Advisory Services Inc. purchased a new stake in Capital Southwest during the 4th quarter worth about $224,000. 23.42% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Separately, B. Riley dropped their price target on Capital Southwest from $25.00 to $24.00 and set a “neutral” rating on the stock in a research note on Wednesday, August 7th.

Capital Southwest Stock Performance

NASDAQ:CSWC opened at $25.28 on Thursday. The company has a quick ratio of 0.12, a current ratio of 0.12 and a debt-to-equity ratio of 0.29. The company has a market cap of $1.16 billion, a P/E ratio of 12.33 and a beta of 1.24. Capital Southwest Co. has a fifty-two week low of $20.72 and a fifty-two week high of $27.23. The firm’s 50 day moving average is $25.16 and its two-hundred day moving average is $25.36.

Capital Southwest (NASDAQ:CSWC) last released its quarterly earnings results on Monday, August 5th. The asset manager reported $0.63 earnings per share for the quarter, missing analysts’ consensus estimates of $0.66 by ($0.03). The firm had revenue of $51.35 million for the quarter, compared to analyst estimates of $49.31 million. Capital Southwest had a net margin of 38.92% and a return on equity of 15.70%. Analysts expect that Capital Southwest Co. will post 2.5 EPS for the current year.

Capital Southwest Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 30th. Investors of record on Friday, September 13th will be given a $0.64 dividend. The ex-dividend date of this dividend is Friday, September 13th. This is an increase from Capital Southwest’s previous quarterly dividend of $0.57. This represents a $2.56 annualized dividend and a yield of 10.13%. Capital Southwest’s dividend payout ratio (DPR) is currently 113.17%.

Capital Southwest 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, recapitalizations and growth capital investments. It does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing.