Capital Southwest (NASDAQ:CSWC) Hits New 12-Month Low – Should You Sell?

Capital Southwest Co. (NASDAQ:CSWC) hit a new 52-week low on Thursday . The company traded as low as $20.83 and last traded at $20.88, with a volume of 893983 shares. The stock had previously closed at $21.25.

Analyst Ratings Changes

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

Capital Southwest Stock Performance

The company has a debt-to-equity ratio of 0.35, a current ratio of 0.16 and a quick ratio of 0.16. The company’s 50-day moving average price is $23.64 and its two-hundred day moving average price is $24.81. The company has a market capitalization of $995.70 million, a price-to-earnings ratio of 12.73 and a beta of 1.23.

Capital Southwest (NASDAQ:CSWC) last issued its earnings results on Monday, October 28th. The asset manager reported $0.66 EPS for the quarter, beating analysts’ consensus estimates of $0.65 by $0.01. The business had revenue of $48.71 million during the quarter, compared to analyst estimates of $49.79 million. Capital Southwest had a return on equity of 15.54% and a net margin of 37.77%. During the same period in the previous year, the company posted $0.69 EPS. On average, equities research analysts anticipate that Capital Southwest Co. will post 2.54 EPS for the current fiscal year.

Capital Southwest Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 31st. Shareholders of record on Friday, December 13th will be paid a $0.63 dividend. The ex-dividend date is Friday, December 13th. This represents a $2.52 annualized dividend and a dividend yield of 12.07%. Capital Southwest’s payout ratio is presently 141.46%.

Institutional Investors Weigh In On Capital Southwest

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Franklin Resources Inc. increased its stake in Capital Southwest by 24.6% in the 3rd quarter. Franklin Resources Inc. now owns 154,038 shares of the asset manager’s stock worth $3,893,000 after purchasing an additional 30,423 shares during the period. First Dallas Securities Inc. boosted its stake in shares of Capital Southwest by 4.2% during the 3rd quarter. First Dallas Securities Inc. now owns 56,512 shares of the asset manager’s stock worth $1,429,000 after acquiring an additional 2,289 shares during the last quarter. Barclays PLC boosted its position in shares of Capital Southwest by 1.7% in the third quarter. Barclays PLC now owns 76,083 shares of the asset manager’s stock worth $1,924,000 after purchasing an additional 1,263 shares during the period. MML Investors Services LLC grew its stake in Capital Southwest by 124.2% during the third quarter. MML Investors Services LLC now owns 102,730 shares of the asset manager’s stock valued at $2,598,000 after acquiring an additional 56,919 shares in the last quarter. Finally, Hodges Capital Management Inc. increased its position in Capital Southwest by 7.8% during the third quarter. Hodges Capital Management Inc. now owns 78,305 shares of the asset manager’s stock valued at $1,980,000 after acquiring an additional 5,679 shares during the last quarter. 23.42% of the stock is currently owned by institutional investors.

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.