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 also recently commented on the company. National Securities upgraded Capital Southwest from a “neutral” rating to a “buy” rating in a report on Tuesday, March 17th. TheStreet cut Capital Southwest from a “b-” rating to a “c+” rating in a report on Wednesday, March 11th. Raymond James initiated coverage on Capital Southwest in a research note on Thursday, December 12th. They issued an “outperform” rating and a $23.50 target price for the company. B. Riley reiterated a “hold” rating and issued a $22.00 price objective on shares of Capital Southwest in a research report on Tuesday, February 4th. Finally, ValuEngine lowered Capital Southwest from a “hold” rating to a “sell” rating in a research report on Thursday, April 2nd. Two equities research analysts have rated the stock with a sell rating, two have issued a hold rating and three have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average price target of $23.30.
Capital Southwest (NASDAQ:CSWC) last posted its quarterly earnings data on Monday, February 3rd. The asset manager reported $0.39 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.03). Capital Southwest had a net margin of 21.38% and a return on equity of 8.70%. The firm had revenue of $15.98 million for the quarter, compared to analysts’ expectations of $15.35 million. Research analysts predict that Capital Southwest will post 1.64 EPS for the current year.
In other news, CFO Michael Scott Sarner purchased 4,150 shares of the business’s stock in a transaction on Friday, February 28th. The shares were acquired at an average price of $18.23 per share, for a total transaction of $75,654.50. Also, CEO Bowen S. Diehl purchased 20,000 shares of the business’s stock in a transaction on Friday, March 20th. The stock was purchased at an average price of $9.46 per share, for a total transaction of $189,200.00. Following the acquisition, the chief executive officer now owns 94,942 shares of the company’s stock, valued at approximately $898,151.32. The disclosure for this purchase can be found here. Insiders acquired 48,137 shares of company stock valued at $505,217 over the last quarter. Corporate insiders own 6.80% of the company’s stock.
Several hedge funds have recently bought and sold shares of the company. Advisor Group Inc. lifted its holdings in Capital Southwest by 9.0% during the fourth quarter. Advisor Group Inc. now owns 10,852 shares of the asset manager’s stock worth $225,000 after acquiring an additional 899 shares during the period. Csenge Advisory Group lifted its holdings in Capital Southwest by 15.2% during the fourth quarter. Csenge Advisory Group now owns 10,756 shares of the asset manager’s stock worth $224,000 after acquiring an additional 1,420 shares during the period. Sunbelt Securities Inc. bought a new stake in Capital Southwest during the fourth quarter worth $7,804,000. Vigilant Capital Management LLC bought a new stake in Capital Southwest during the fourth quarter worth $42,000. Finally, Allred Capital Management LLC bought a new stake in Capital Southwest during the fourth quarter worth $62,000. Institutional investors own 41.37% 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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