Capital Southwest (CSWC) Cut to “Hold” at Zacks Investment Research

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Capital Southwest (NASDAQ:CSWC) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Friday.

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 equities analysts have also issued reports on CSWC. BidaskClub lowered shares of Capital Southwest from a “strong-buy” rating to a “buy” rating in a report on Thursday, December 20th. National Securities boosted their target price on shares of Capital Southwest from $23.00 to $24.00 and gave the company a “buy” rating in a report on Monday, November 12th.

CSWC stock traded down $0.19 during midday trading on Friday, hitting $20.72. The stock had a trading volume of 77,835 shares, compared to its average volume of 114,067. The firm has a market cap of $349.39 million, a price-to-earnings ratio of 20.51 and a beta of 0.19. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 0.41. Capital Southwest has a 1-year low of $14.85 and a 1-year high of $24.17.

Capital Southwest (NASDAQ:CSWC) last released its earnings results on Wednesday, November 7th. The asset manager reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.28 by $0.06. The business had revenue of $12.60 million for the quarter, compared to analyst estimates of $10.58 million. Capital Southwest had a net margin of 102.03% and a return on equity of 6.23%. Research analysts expect that Capital Southwest will post 1.44 earnings per share for the current year.

In other news, Director Jack D. Furst bought 2,900 shares of the company’s stock in a transaction that occurred on Monday, December 24th. The shares were acquired at an average price of $18.16 per share, for a total transaction of $52,664.00. Following the completion of the acquisition, the director now directly owns 20,000 shares in the company, valued at $363,200. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Jack D. Furst acquired 6,404 shares of the company’s stock in a transaction dated Wednesday, December 26th. The shares were bought at an average price of $18.50 per share, for a total transaction of $118,474.00. Following the acquisition, the director now directly owns 20,000 shares of the company’s stock, valued at approximately $370,000. The disclosure for this purchase can be found here. In the last 90 days, insiders purchased 10,304 shares of company stock worth $190,668. 6.68% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the company. Bard Associates Inc. raised its holdings in shares of Capital Southwest by 16.9% during the second quarter. Bard Associates Inc. now owns 19,375 shares of the asset manager’s stock valued at $351,000 after purchasing an additional 2,800 shares during the period. Sumitomo Mitsui Asset Management Company LTD acquired a new position in shares of Capital Southwest during the third quarter valued at about $842,000. Advisory Research Inc. acquired a new position in shares of Capital Southwest during the third quarter valued at about $911,000. Sanders Morris Harris LLC acquired a new position in shares of Capital Southwest during the third quarter valued at about $1,122,000. Finally, Raymond James & Associates raised its holdings in shares of Capital Southwest by 8.6% during the second quarter. Raymond James & Associates now owns 76,859 shares of the asset manager’s stock valued at $1,392,000 after purchasing an additional 6,064 shares during the period. Hedge funds and other institutional investors own 52.44% 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, 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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