B. Riley Predicts Stronger Earnings for Capital Southwest

Capital Southwest Co. (NASDAQ:CSWC - Free Report) - Investment analysts at B. Riley raised their Q3 2025 earnings per share estimates for Capital Southwest in a report released on Wednesday, October 30th. B. Riley analyst B. Rowe now expects that the asset manager will post earnings of $0.66 per share for the quarter, up from their previous forecast of $0.65. B. Riley has a "Neutral" rating and a $24.50 price target on the stock. The consensus estimate for Capital Southwest's current full-year earnings is $2.47 per share. B. Riley also issued estimates for Capital Southwest's Q4 2025 earnings at $0.65 EPS and FY2025 earnings at $2.61 EPS.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last released its earnings results on Monday, October 28th. The asset manager reported $0.66 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.65 by $0.01. Capital Southwest had a return on equity of 15.54% and a net margin of 37.77%. The firm had revenue of $48.71 million for the quarter, compared to analyst estimates of $49.79 million. During the same period in the previous year, the company earned $0.69 earnings per share.

Capital Southwest Price Performance

Shares of CSWC traded down $0.20 during mid-day trading on Friday, hitting $23.98. The company's stock had a trading volume of 193,118 shares, compared to its average volume of 294,526. Capital Southwest has a fifty-two week low of $21.23 and a fifty-two week high of $27.23. The stock has a market capitalization of $1.14 billion, a price-to-earnings ratio of 14.71 and a beta of 1.24. The firm has a 50-day moving average price of $25.20 and a 200 day moving average price of $25.52. The company has a debt-to-equity ratio of 0.35, a current ratio of 0.16 and a quick ratio of 0.12.

Hedge Funds Weigh In On Capital Southwest

Institutional investors have recently bought and sold shares of the stock. EntryPoint Capital LLC acquired a new stake in shares of Capital Southwest during the first quarter valued at approximately $28,000. Larson Financial Group LLC raised its stake in Capital Southwest by 101.7% during the 1st quarter. Larson Financial Group LLC now owns 2,017 shares of the asset manager's stock valued at $50,000 after purchasing an additional 1,017 shares during the period. EverSource Wealth Advisors LLC purchased a new stake in shares of Capital Southwest in the second quarter valued at $58,000. Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Capital Southwest in the second quarter worth $104,000. Finally, Nisa Investment Advisors LLC purchased a new position in shares of Capital Southwest during the third quarter valued at $106,000. Hedge funds and other institutional investors own 23.42% of the company's stock.

Capital Southwest Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 31st. Stockholders of record on Friday, December 13th will be paid a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a dividend yield of 10.51%. The ex-dividend date of this dividend is Friday, December 13th. Capital Southwest's dividend payout ratio is presently 141.46%.

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.