Capital Southwest (NASDAQ:CSWC) Sees Strong Trading Volume - Still a Buy?

Capital Southwest Co. (NASDAQ:CSWC - Get Free Report) shares saw unusually-strong trading volume on Monday . Approximately 430,940 shares changed hands during mid-day trading, an increase of 37% from the previous session's volume of 314,496 shares.The stock last traded at $22.71 and had previously closed at $22.91.

Wall Street Analysts Forecast Growth

Separately, B. Riley boosted their target price on shares of Capital Southwest from $24.00 to $24.50 and gave the stock a "neutral" rating in a research note on Wednesday, October 30th.

Capital Southwest Price Performance

The stock has a market capitalization of $1.08 billion, a price-to-earnings ratio of 13.86 and a beta of 1.25. The business's fifty day moving average price is $24.98 and its 200-day moving average price is $25.44. The company has a debt-to-equity ratio of 0.35, a current ratio of 0.16 and a quick ratio of 0.16.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last issued its quarterly earnings results on Monday, October 28th. The asset manager reported $0.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.65 by $0.01. Capital Southwest had a net margin of 37.77% and a return on equity of 15.54%. The company had revenue of $48.71 million during the quarter, compared to analyst estimates of $49.79 million. During the same quarter last year, the business posted $0.69 EPS. On average, research analysts forecast that Capital Southwest Co. will post 2.54 EPS for the current year.

Capital Southwest Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 31st. Shareholders of record on Friday, December 13th will be given a dividend of $0.63 per share. The ex-dividend date of this dividend is Friday, December 13th. This represents a $2.52 annualized dividend and a yield of 11.13%. Capital Southwest's payout ratio is 141.46%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Creative Planning lifted its stake in shares of Capital Southwest by 4.2% in the third quarter. Creative Planning now owns 11,161 shares of the asset manager's stock worth $282,000 after buying an additional 452 shares in the last quarter. Hollencrest Capital Management grew its position in shares of Capital Southwest by 8.6% during the third quarter. Hollencrest Capital Management now owns 6,527 shares of the asset manager's stock worth $165,000 after purchasing an additional 518 shares in the last quarter. First Dallas Securities Inc. lifted its holdings in shares of Capital Southwest by 1.5% in the second quarter. First Dallas Securities Inc. now owns 54,223 shares of the asset manager's stock worth $1,415,000 after buying an additional 775 shares in the last quarter. B. Riley Wealth Advisors Inc. boosted its holdings in shares of Capital Southwest by 1.7% during the 1st quarter. B. Riley Wealth Advisors Inc. now owns 55,254 shares of the asset manager's stock valued at $1,265,000 after purchasing an additional 923 shares during the last quarter. Finally, EntryPoint Capital LLC bought a new stake in Capital Southwest in the 1st quarter worth approximately $28,000. Hedge funds and other institutional investors own 23.42% of the company's stock.

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.

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