Stocks of Capital Southwest Corp. (NASDAQ:CSWC) traded higher last session on Wall Street, up 0.54% to $22.42.
According to the data, Capital Southwest Corp. (NASDAQ:CSWC) has 8 analysts covering its stock. The consensus rating among analysts is ‘Overweight’. As we calculate the median target price by taking the range between a high of $25.00 and a low of $21.00, we find $23.00. Given the previous closing price of $22.30, this indicates a potential upside of 3.14 percent. CSWC stock price is now 2.13% away from the 50-day moving average and 12.32% away from the 200-day moving average. The market capitalization of the company currently stands at $895.68M.
A total of 3 analysts have issued a hold rating and 4 have given it a buy rating. Brokers who have rated the stock have averaged $22.81 as their price target over the next twelve months.
With the price target of $19, UBS recently initiated with Neutral rating for Capital Southwest Corp. (NASDAQ: CSWC).
In other news, Rogers-Windsor Ramona Lynn, Director bought 500 shares of the company’s stock on Nov 02. The stock was bought for $10,835 at an average price of $21.67. Upon completion of the transaction, the Director now directly owns 11,164 shares in the company, valued at $0.25 million. An SEC document containing details of the transaction can be found on the SEC’s website. On Feb 06, Director Rogers-Windsor Ramona Lynn bought 500 shares of the business’s stock. A total of $9,843 was incurred on buying the stock at an average price of $19.69. This leaves the insider owning 7,907 shares of the company worth $0.18 million. Insiders disposed of 25,366 shares of company stock worth roughly $0.57 million over the past 1 year. A total of 4.81% of the company’s stock is owned by insiders.
During the past 12 months, Capital Southwest Corp. has had a low of $16.26 and a high of $23.35. The fifty day moving average price for CSWC is $21.95 and a two-hundred day moving average price translates $20.03 for the stock.
The latest earnings results from Capital Southwest Corp. (NASDAQ: CSWC) was released for Sep, 2023. According to the Asset Management Company, earnings per share came in at $0.69, beating analysts’ expectations of $0.65 by 0.04. This compares to $0.34 EPS in the same period last year. The net profit margin was 51.87% and return on equity was 11.92% for CSWC. The company reported revenue of $42.78 million for the quarter, compared to $26.8 million a year earlier. Comparatively to last year’s same quarter, the company’s quarterly revenue rose 59.62 percent. For the current quarter, analysts expect CSWC to generate $45.13M in revenue.
Capital Southwest Corp.(CSWC) 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. In lower middle market, the firm typically invests in growth financing, bolt-on acquisitions, new platform acquisitions, refinancing, dividend recapitalizations, sponsor-led buyouts, and management buyouts situations. The investment structures are Unitranche debt, subordinated debt, senior debt, first and second lien debt, and preferred and common equity. The firm makes equity co-investments alongside debt investments, up to 20% of total check and only makes non-control investments. It prefers to invest in Industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food and beverage, tech-enabled services and SaaS models. The firm seeks to invest in energy services and products, industrial technologies, and specialty chemicals and products. Within energy services and products, the firm seeks to invest in each segment of the industry, including upstream, midstream and downstream, excluding exploration and production with a focus on differentiated products and services, equipment and tool rental, consumable products, and drilling and completion chemicals. Within industrial technologies, it seeks to invest in automation and process controls, handling and packaging equipment, industrial filtration and fluid handling, measurement, monitoring and testing, professional tools, and sensors and instrumentation. Within and specialty chemicals and products, the firm seeks to invest in businesses that develop and manufacture highly differentiated chemicals and products including adhesives, coatings and sealants, catalysts and absorbents, cosmeceuticals, fine chemicals, flavors and fragrances, performance lubricants, polymers, plastics and composites, chemical dispensing and filtration equipment, professional and industrial trade consumables and tools, engineered solutions for HVAC, plumbing, and electrical installations, specified high performance materials for fire protection and oilfield applications. It may also invest in exceptional opportunities in building products. The firm seeks to invest in the United States. The firm seeks to make investments ranging from $5 to $25 million in securities. It seeks to make equity investments ranging from $5 million to $50 million and debt investments between $5 million and $20 million and co-invest in transaction size up to $40 million. It prefers to invest in companies with revenues approaching above $10 million, profitable operations, historical growth rate of at least 15 percent per year. Within the lower middle market, it seeks to invest in with less than $15 million in EBITDA and also opportunistically invests in the upper middle market, generally defined as companies with EBITDA in excess of $50 million. In addition to making direct investments, the firm allocates capital to syndicated first and second lien term loans in the upper middle market. Criteria for Upper Middle Market Syndicated 1st Lien is EBITDA Size more than $30 million, Closing Leverage greater than 4 times, investment hold size between $5 million and $7 million, investment yield greater than 6.5%. Criteria for Upper Middle Market Syndicated 2nd Lien is EBITDA Size more than $50 million, Closing Leverage greater than 6 times, investment hold size between $5 million and $7 million, investment yield greater than 9%. It prefers to take a majority and minority stake. The firm has the flexibility to hold investments for very long period in its portfolio companies. It may also invest through warrants. The firm prefers to take Board participation in its portfolio companies. Capital Southwest Corporation was founded on April 19, 1961 and is based in Dallas, Texas.
