Capital Southwest (NASDAQ:CSWC) Sees Large Volume Increase on Earnings Beat

Capital Southwest Co. (NASDAQ:CSWC) shares saw unusually-high trading volume on Tuesday after the company announced better than expected quarterly earnings. Approximately 427,025 shares were traded during trading, an increase of 3% from the previous session’s volume of 412,606 shares.The stock last traded at $22.98 and had previously closed at $22.28.

The asset manager reported $0.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.01. Capital Southwest had a return on equity of 15.54% and a net margin of 37.77%.

Capital Southwest Cuts Dividend

The firm also recently declared 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. This represents a $2.32 annualized dividend and a dividend yield of 10.19%. The ex-dividend date of this dividend is Friday, March 14th. Capital Southwest’s payout ratio is currently 141.46%.

Analyst Ratings Changes

Separately, B. Riley increased their price objective on Capital Southwest from $24.00 to $24.50 and gave the company a “neutral” rating in a report on Wednesday, October 30th.

Hedge Funds Weigh In On Capital Southwest

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Quarry LP bought a new position in Capital Southwest during the 3rd quarter worth approximately $35,000. Northwestern Mutual Wealth Management Co. bought a new position in Capital Southwest during the second quarter worth $104,000. Nisa Investment Advisors LLC acquired a new position in Capital Southwest in the third quarter valued at $106,000. Hollencrest Capital Management boosted its position in Capital Southwest by 8.6% during the third quarter. Hollencrest Capital Management now owns 6,527 shares of the asset manager’s stock valued at $165,000 after acquiring an additional 518 shares during the last quarter. Finally, Blue Trust Inc. grew its holdings in Capital Southwest by 1,539.2% during the 3rd quarter. Blue Trust Inc. now owns 7,147 shares of the asset manager’s stock worth $186,000 after acquiring an additional 6,711 shares during the period. 23.42% of the stock is owned by institutional investors and hedge funds.

Capital Southwest Stock Performance

The stock has a market capitalization of $1.09 billion, a price-to-earnings ratio of 13.88 and a beta of 1.24. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.16 and a current ratio of 0.16. The stock has a fifty day simple moving average of $22.23 and a two-hundred day simple moving average of $23.81.

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.