Capital Southwest (NASDAQ:CSWC) Lowered to Sell Rating by StockNews.com

StockNews.com cut shares of Capital Southwest (NASDAQ:CSWC) from a hold rating to a sell rating in a research note published on Monday morning.

Capital Southwest Stock Performance

NASDAQ CSWC opened at $22.26 on Monday. The business’s 50 day moving average price is $22.68 and its 200-day moving average price is $23.32. Capital Southwest has a fifty-two week low of $20.68 and a fifty-two week high of $27.23. The company has a market cap of $1.13 billion, a P/E ratio of 15.79 and a beta of 1.21. The company has a debt-to-equity ratio of 0.64, a quick ratio of 0.18 and a current ratio of 0.18.

Capital Southwest (NASDAQ:CSWC) last posted its quarterly earnings data on Monday, February 3rd. The asset manager reported $0.63 earnings per share for the quarter, beating analysts’ consensus estimates of $0.62 by $0.01. Capital Southwest had a net margin of 33.49% and a return on equity of 15.18%. Sell-side analysts predict that Capital Southwest will post 2.54 earnings per share for the current year.

Capital Southwest Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 31st. Stockholders of record on Friday, March 14th will be paid a dividend of $0.58 per share. The ex-dividend date is Friday, March 14th. This represents a $2.32 dividend on an annualized basis and a dividend yield of 10.42%. Capital Southwest’s dividend payout ratio is 164.54%.

Institutional Investors Weigh In On Capital Southwest

A number of institutional investors and hedge funds have recently modified their holdings of CSWC. Barclays PLC increased its stake in Capital Southwest by 1.7% in the third quarter. Barclays PLC now owns 76,083 shares of the asset manager’s stock worth $1,924,000 after purchasing an additional 1,263 shares during the period. Franklin Resources Inc. increased its stake in Capital Southwest by 24.6% in the 3rd quarter. Franklin Resources Inc. now owns 154,038 shares of the asset manager’s stock worth $3,893,000 after buying an additional 30,423 shares during the period. Benjamin Edwards Inc. lifted its holdings in Capital Southwest by 970.6% during the 3rd quarter. Benjamin Edwards Inc. now owns 80,201 shares of the asset manager’s stock valued at $2,028,000 after buying an additional 72,710 shares in the last quarter. Oppenheimer & Co. Inc. bought a new position in Capital Southwest in the 4th quarter worth about $326,000. Finally, Sanders Morris Harris LLC grew its stake in Capital Southwest by 28.0% in the 4th quarter. Sanders Morris Harris LLC now owns 814,584 shares of the asset manager’s stock worth $17,579,000 after acquiring an additional 178,420 shares in the last quarter. 23.42% of the stock is owned by institutional investors.

About Capital Southwest

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, industry consolidation, recapitalizations and growth capital investments.