Capital Southwest (NASDAQ:CSWC) Stock Rating Lowered by StockNews.com

StockNews.com cut shares of Capital Southwest (NASDAQ:CSWC) from a hold rating to a sell rating in a report released on Monday morning.

Capital Southwest Stock Performance

CSWC opened at $22.53 on Monday. The stock has a market cap of $1.14 billion, a P/E ratio of 15.98 and a beta of 1.21. The company has a debt-to-equity ratio of 0.64, a current ratio of 0.18 and a quick ratio of 0.18. The firm has a fifty day moving average price of $22.70 and a 200 day moving average price of $23.30. Capital Southwest has a 1 year low of $20.68 and a 1 year high of $27.23.

Capital Southwest (NASDAQ:CSWC) last posted its earnings results on Monday, February 3rd. The asset manager reported $0.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.01. Capital Southwest had a net margin of 33.49% and a return on equity of 15.18%. Equities research analysts anticipate that Capital Southwest will post 2.54 earnings per share for the current year.

Capital Southwest Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 31st. Stockholders of record on Friday, March 14th will be paid a dividend of $0.58 per share. This represents a $2.32 annualized dividend and a dividend yield of 10.30%. The ex-dividend date of this dividend is Friday, March 14th. Capital Southwest’s payout ratio is 164.54%.

Institutional Investors Weigh In On Capital Southwest

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Van ECK Associates Corp lifted its holdings in Capital Southwest by 3.3% during the fourth quarter. Van ECK Associates Corp now owns 1,190,204 shares of the asset manager’s stock valued at $25,970,000 after purchasing an additional 38,051 shares in the last quarter. Balyasny Asset Management L.P. purchased a new position in Capital Southwest in the 4th quarter valued at about $21,846,000. Sanders Morris Harris LLC boosted its holdings in Capital Southwest by 28.0% in the 4th quarter. Sanders Morris Harris LLC now owns 814,584 shares of the asset manager’s stock worth $17,579,000 after buying an additional 178,420 shares during the last quarter. Two Sigma Advisers LP increased its stake in Capital Southwest by 17.3% during the 4th quarter. Two Sigma Advisers LP now owns 774,600 shares of the asset manager’s stock worth $16,902,000 after buying an additional 114,000 shares in the last quarter. Finally, Two Sigma Investments LP raised its holdings in shares of Capital Southwest by 42.2% during the fourth quarter. Two Sigma Investments LP now owns 673,778 shares of the asset manager’s stock valued at $14,702,000 after acquiring an additional 200,060 shares during the last quarter. Hedge funds and other institutional investors own 23.42% of the company’s stock.

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, industry consolidation, recapitalizations and growth capital investments.