Capital Southwest (NASDAQ:CSWC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Tuesday. The brokerage presently has a $22.00 price objective on the asset manager’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 14.76% from the stock’s previous close.

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 research analysts have also recently issued reports on the company. BidaskClub raised Capital Southwest from a “buy” rating to a “strong-buy” rating in a report on Saturday, October 13th. JMP Securities started coverage on Capital Southwest in a report on Tuesday, July 31st. They issued an “outperform” rating and a $20.00 target price on the stock. Finally, National Securities lifted their target price on Capital Southwest from $23.00 to $24.00 and gave the stock a “buy” rating in a report on Monday. One equities research analyst has rated the stock with a hold rating and four have issued a buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average price target of $21.25.

Shares of CSWC stock traded down $0.18 during trading hours on Tuesday, hitting $19.17. The stock had a trading volume of 29,583 shares, compared to its average volume of 44,152. Capital Southwest has a one year low of $14.85 and a one year high of $20.31. The company has a current ratio of 0.28, a quick ratio of 0.28 and a debt-to-equity ratio of 0.41. The stock has a market capitalization of $329.79 million, a price-to-earnings ratio of 18.98 and a beta of 0.18.

Capital Southwest (NASDAQ:CSWC) last issued its earnings results on Wednesday, November 7th. The asset manager reported $0.34 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.28 by $0.06. Capital Southwest had a return on equity of 6.23% and a net margin of 102.03%. The firm had revenue of $12.60 million for the quarter, compared to analysts’ expectations of $10.58 million. As a group, research analysts predict that Capital Southwest will post 1.28 EPS for the current fiscal year.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Advisors Asset Management Inc. grew its position in Capital Southwest by 36.6% in the second quarter. Advisors Asset Management Inc. now owns 119,518 shares of the asset manager’s stock worth $2,164,000 after acquiring an additional 32,027 shares in the last quarter. Hilltop Holdings Inc. grew its position in Capital Southwest by 30.0% in the second quarter. Hilltop Holdings Inc. now owns 55,300 shares of the asset manager’s stock worth $1,001,000 after acquiring an additional 12,750 shares in the last quarter. Sumitomo Mitsui Asset Management Company LTD purchased a new position in Capital Southwest in the third quarter worth about $842,000. Bard Associates Inc. grew its position in Capital Southwest by 16.9% in the second quarter. Bard Associates Inc. now owns 19,375 shares of the asset manager’s stock worth $351,000 after acquiring an additional 2,800 shares in the last quarter. Finally, Sanders Morris Harris LLC purchased a new position in Capital Southwest in the third quarter worth about $1,122,000. Institutional investors own 54.34% 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, 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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