Capital Southwest (NASDAQ:CSWC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.
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 analysts have also commented on the company. National Securities reissued a “buy” rating and issued a $24.00 price objective on shares of Capital Southwest in a report on Wednesday, February 6th. B. Riley began coverage on Capital Southwest in a report on Friday, January 25th. They issued a “neutral” rating and a $23.00 price objective on the stock. Finally, BidaskClub lowered Capital Southwest from a “strong-buy” rating to a “buy” rating in a report on Friday, January 25th. Two analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. Capital Southwest has an average rating of “Buy” and a consensus target price of $22.75.
Capital Southwest (NASDAQ:CSWC) last announced its quarterly earnings results on Monday, February 4th. The asset manager reported $0.39 earnings per share for the quarter, beating the consensus estimate of $0.37 by $0.02. The company had revenue of $13.87 million during the quarter, compared to analysts’ expectations of $13.52 million. Capital Southwest had a return on equity of 6.78% and a net margin of 84.08%. On average, research analysts predict that Capital Southwest will post 1.43 earnings per share for the current fiscal year.
In other news, Director Jack D. Furst purchased 6,404 shares of the stock in a transaction dated Wednesday, December 26th. The shares were purchased at an average cost of $18.50 per share, with a total value of $118,474.00. Following the completion of the purchase, the director now directly owns 20,000 shares of the company’s stock, valued at approximately $370,000. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Jack D. Furst purchased 2,900 shares of the stock in a transaction dated Monday, December 24th. The stock was purchased at an average cost of $18.16 per share, for a total transaction of $52,664.00. Following the completion of the purchase, the director now directly owns 20,000 shares of the company’s stock, valued at $363,200. The disclosure for this purchase can be found here. 6.68% of the stock is currently owned by company insiders.
Several large investors have recently modified their holdings of CSWC. California Public Employees Retirement System purchased a new position in Capital Southwest in the fourth quarter valued at about $350,000. Creative Planning purchased a new position in Capital Southwest in the fourth quarter valued at about $395,000. Cavalier Investments LLC purchased a new position in Capital Southwest in the fourth quarter valued at about $903,000. Advisors Asset Management Inc. raised its position in Capital Southwest by 13.5% in the fourth quarter. Advisors Asset Management Inc. now owns 156,846 shares of the asset manager’s stock valued at $3,015,000 after purchasing an additional 18,699 shares during the period. Finally, Eagle Global Advisors LLC purchased a new position in Capital Southwest in the fourth quarter valued at about $253,000. 58.43% of the stock is currently owned by hedge funds and other 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, 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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