Capital Southwest (NASDAQ:CSWC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Thursday.
According to Zacks, “Capital Southwest Corporation is a venture capital investment company whose objective is to achieve capital appreciation through long-term investments in businesses believed to have favorable growth potential. The Company’s investments are focused on early-stage financings, expansion financings, management buyouts and recapitalizations in a broad range of industry segments. The portfolio is a composite of companies in which the Company has major interests as well as a number of developing companies and marketable securities of established publicly-owned companies. “
Several other research firms have also recently issued reports on CSWC. BidaskClub raised shares of Capital Southwest from a “hold” rating to a “buy” rating in a research report on Friday, June 8th. JMP Securities started coverage on shares of Capital Southwest in a research report on Tuesday, July 31st. They issued an “outperform” rating and a $20.00 target price on the stock. Finally, National Securities raised their target price on shares of Capital Southwest from $22.00 to $23.00 and gave the stock a “buy” rating in a research report on Monday, June 11th. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and four have given a buy rating to the company’s stock. Capital Southwest presently has a consensus rating of “Buy” and a consensus target price of $20.25.
Shares of Capital Southwest opened at $18.71 on Thursday, according to Marketbeat. The stock has a market cap of $298.02 million, a PE ratio of 18.52 and a beta of 0.21. Capital Southwest has a 12 month low of $14.85 and a 12 month high of $19.38. The company has a quick ratio of 0.25, a current ratio of 0.25 and a debt-to-equity ratio of 0.13.
Capital Southwest (NASDAQ:CSWC) last issued its quarterly earnings results on Monday, August 6th. The asset manager reported $0.29 EPS for the quarter, topping analysts’ consensus estimates of $0.26 by $0.03. The business had revenue of $11.11 million during the quarter, compared to the consensus estimate of $9.92 million. Capital Southwest had a net margin of 118.20% and a return on equity of 5.85%. research analysts predict that Capital Southwest will post 1.25 earnings per share for the current fiscal year.
Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Centaurus Financial Inc. acquired a new stake in shares of Capital Southwest in the first quarter worth approximately $153,000. Greenwich Investment Management Inc. acquired a new stake in shares of Capital Southwest in the first quarter worth approximately $298,000. Northern Trust Corp acquired a new stake in shares of Capital Southwest in the first quarter worth approximately $464,000. Hilltop Holdings Inc. acquired a new stake in shares of Capital Southwest in the first quarter worth approximately $724,000. Finally, Ariel Investments LLC boosted its position in shares of Capital Southwest by 4.8% in the second quarter. Ariel Investments LLC now owns 1,039,515 shares of the asset manager’s stock worth $18,826,000 after acquiring an additional 47,792 shares during the last quarter. 56.22% of the stock is currently owned by institutional investors and hedge funds.
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, recapitalizations and growth capital investments. It does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing.
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