Capital Southwest (NASDAQ:CSWC) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Capital Southwest (NASDAQ:CSWC – Get Rating) announced its quarterly earnings data on Tuesday. The asset manager reported $0.65 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.03, Briefing.com reports. Capital Southwest had a return on equity of 13.83% and a net margin of 27.74%. The business had revenue of $37.20 million during the quarter, compared to the consensus estimate of $35.91 million. During the same period in the prior year, the company earned $0.50 EPS. Capital Southwest’s revenue for the quarter was up 13.4% on a year-over-year basis.

Capital Southwest Trading Down 0.5 %

NASDAQ CSWC opened at $18.25 on Thursday. The business has a 50 day simple moving average of $17.77 and a 200 day simple moving average of $18.16. Capital Southwest has a one year low of $16.28 and a one year high of $23.13. The stock has a market capitalization of $630.72 million, a P/E ratio of 16.44 and a beta of 1.19. The company has a debt-to-equity ratio of 0.58, a current ratio of 0.15 and a quick ratio of 0.15.

Capital Southwest Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 30th. Investors of record on Thursday, June 15th will be paid a dividend of $0.59 per share. The ex-dividend date of this dividend is Wednesday, June 14th. This represents a $2.36 annualized dividend and a yield of 12.93%. This is a boost from Capital Southwest’s previous quarterly dividend of $0.58. Capital Southwest’s dividend payout ratio (DPR) is currently 190.99%.

Institutional Investors Weigh In On Capital Southwest

Several large investors have recently added to or reduced their stakes in the business. PNC Financial Services Group Inc. grew its stake in Capital Southwest by 3.1% in the first quarter. PNC Financial Services Group Inc. now owns 20,583 shares of the asset manager’s stock valued at $488,000 after acquiring an additional 611 shares during the period. Great West Life Assurance Co. Can grew its stake in Capital Southwest by 10.3% in the first quarter. Great West Life Assurance Co. Can now owns 7,765 shares of the asset manager’s stock valued at $196,000 after acquiring an additional 726 shares during the period. Cambridge Investment Research Advisors Inc. grew its stake in Capital Southwest by 3.1% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 25,826 shares of the asset manager’s stock valued at $613,000 after acquiring an additional 777 shares during the period. Guggenheim Capital LLC grew its stake in Capital Southwest by 12.1% in the first quarter. Guggenheim Capital LLC now owns 9,338 shares of the asset manager’s stock valued at $222,000 after acquiring an additional 1,010 shares during the period. Finally, Bank of America Corp DE grew its stake in Capital Southwest by 26.8% in the fourth quarter. Bank of America Corp DE now owns 6,143 shares of the asset manager’s stock valued at $105,000 after acquiring an additional 1,298 shares during the period. Institutional investors and hedge funds own 26.36% of the company’s stock.

Wall Street Analyst Weigh In

CSWC has been the subject of several recent analyst reports. B. Riley upped their price objective on Capital Southwest from $20.00 to $21.50 and gave the stock a “buy” rating in a research report on Wednesday, February 1st. UBS Group began coverage on Capital Southwest in a research report on Tuesday, April 11th. They issued a “neutral” rating and a $19.00 target price for the company. StockNews.com downgraded Capital Southwest from a “hold” rating to a “sell” rating in a research report on Wednesday. TheStreet downgraded Capital Southwest from a “b-” rating to a “c” rating in a research report on Monday, January 30th. Finally, JMP Securities restated a “market outperform” rating and set a $22.00 price objective on shares of Capital Southwest in a research report on Friday, April 14th. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and three have given a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $21.30.

About Capital Southwest

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Capital Southwest is a publicly–owned business development company with total assets of $496 million as of June 30, 2010. We provide patient capital to exceptional businesses with significant growth potential. As a public company, we have the flexibility to hold investments indefinitely, which has provided the management teams of our holdings a stable ownership platform since we were founded in 1961.