Capital Southwest (NASDAQ:CSWC) Sees Unusually-High Trading Volume – Should You Buy?

Shares of Capital Southwest Co. (NASDAQ:CSWC) saw an uptick in trading volume on Monday . 430,940 shares traded hands during 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.

Analysts Set New Price Targets

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

Capital Southwest Stock Performance

The stock has a market cap of $1.09 billion, a P/E ratio of 13.96 and a beta of 1.25. The stock has a fifty day simple moving average of $24.88 and a 200-day simple moving average of $25.40. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.16 and a current ratio of 0.16.

Capital Southwest (NASDAQ:CSWC) last announced its quarterly earnings data 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. The company had revenue of $48.71 million for the quarter, compared to analysts’ expectations of $49.79 million. Capital Southwest had a return on equity of 15.54% and a net margin of 37.77%. During the same quarter in the prior year, the business posted $0.69 EPS. On average, equities analysts expect that Capital Southwest Co. will post 2.54 earnings per share for the current year.

Capital Southwest Cuts Dividend

The business also recently disclosed 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 dividend on an annualized basis and a yield of 11.00%. Capital Southwest’s dividend payout ratio (DPR) is 141.46%.

Institutional Trading of Capital Southwest

Hedge funds and other institutional investors have recently modified their holdings of the stock. Advisors Asset Management Inc. lifted its position in Capital Southwest by 7.3% during the third quarter. Advisors Asset Management Inc. now owns 182,606 shares of the asset manager’s stock worth $4,618,000 after acquiring an additional 12,443 shares during the last quarter. Muzinich & Co. Inc. lifted its holdings in Capital Southwest by 4.0% during the 3rd quarter. Muzinich & Co. Inc. now owns 106,072 shares of the asset manager’s stock worth $2,683,000 after purchasing an additional 4,117 shares during the last quarter. Dearborn Partners LLC lifted its holdings in Capital Southwest by 8.0% during the 3rd quarter. Dearborn Partners LLC now owns 19,681 shares of the asset manager’s stock worth $498,000 after purchasing an additional 1,457 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its stake in Capital Southwest by 4.2% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 102,879 shares of the asset manager’s stock valued at $2,602,000 after purchasing an additional 4,117 shares during the period. Finally, Hollencrest Capital Management grew its holdings in Capital Southwest by 8.6% in the 3rd quarter. Hollencrest Capital Management now owns 6,527 shares of the asset manager’s stock valued at $165,000 after buying an additional 518 shares in the last quarter. Institutional investors own 23.42% of the company’s stock.

Capital Southwest Company 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, industry consolidation, recapitalizations and growth capital investments.