Capital Southwest (NASDAQ:CSWC) Announces Earnings Results

Capital Southwest (NASDAQ:CSWC – Get Rating) posted its earnings results on Tuesday. The asset manager reported $0.65 EPS for the quarter, topping analysts’ consensus estimates of $0.62 by $0.03, Briefing.com reports. Capital Southwest had a return on equity of 13.83% and a net margin of 27.74%. The business had revenue of $37.20 million for the quarter, compared to analysts’ expectations of $35.91 million. During the same quarter in the previous year, the firm earned $0.50 earnings per share. The business’s revenue was up 13.4% compared to the same quarter last year.

Capital Southwest Price Performance

NASDAQ:CSWC traded down $0.10 during trading hours on Wednesday, reaching $18.25. 649,712 shares of the company traded hands, compared to its average volume of 295,352. The firm’s 50-day moving average is $17.75 and its 200-day moving average is $18.16. The stock has a market cap of $630.72 million, a P/E ratio of 16.53 and a beta of 1.19. The company has a debt-to-equity ratio of 0.58, a current ratio of 0.15 and a quick ratio of 0.15. Capital Southwest has a 1-year low of $16.28 and a 1-year high of $23.13.

Capital Southwest Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 30th. Shareholders of record on Thursday, June 15th will be issued a dividend of $0.59 per share. This represents a $2.36 dividend on an annualized basis and a yield of 12.93%. The ex-dividend date is Wednesday, June 14th. This is a boost from Capital Southwest’s previous quarterly dividend of $0.58. Capital Southwest’s dividend payout ratio is 190.99%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. JPMorgan Chase & Co. purchased a new position in shares of Capital Southwest during the 2nd quarter worth $352,000. Bank of America Corp DE lifted its stake in shares of Capital Southwest by 215.0% during the 1st quarter. Bank of America Corp DE now owns 19,352 shares of the asset manager’s stock worth $344,000 after purchasing an additional 13,209 shares during the period. SMH Capital Advisors Inc. purchased a new position in shares of Capital Southwest during the 4th quarter worth $307,000. Cubist Systematic Strategies LLC purchased a new position in shares of Capital Southwest in the 2nd quarter worth $264,000. Finally, Cetera Investment Advisers purchased a new position in shares of Capital Southwest in the 1st quarter worth $228,000. Hedge funds and other institutional investors own 26.36% of the company’s stock.

Analyst Ratings Changes

CSWC has been the subject of several analyst reports. TheStreet downgraded Capital Southwest from a “b-” rating to a “c” rating in a research note on Monday, January 30th. UBS Group initiated coverage on Capital Southwest in a research report on Tuesday, April 11th. They set a “neutral” rating and a $19.00 target price on the stock. StockNews.com cut Capital Southwest from a “hold” rating to a “sell” rating in a research report on Wednesday. B. Riley boosted their target price on Capital Southwest from $20.00 to $21.50 and gave the stock a “buy” rating in a research report on Wednesday, February 1st. Finally, JMP Securities reiterated a “market outperform” rating and set a $22.00 target price on shares of Capital Southwest in a research report on Friday, April 14th. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and three have assigned a buy rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $21.30.

About Capital Southwest

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Capital Southwest is a publicly–owned business development company with total assets of $496 million as of June 30, 2010. We provide patient capital to exceptional businesses with significant growth potential. As a public company, we have the flexibility to hold investments indefinitely, which has provided the management teams of our holdings a stable ownership platform since we were founded in 1961.