Capital Southwest Corporation (NASDAQ:CSWC) Given Average Rating of “Moderate Buy” by Analysts

Shares of Capital Southwest Corporation (NASDAQ:CSWC) have been given an average rating of “Moderate Buy” by the seven brokerages that are currently covering the firm, MarketBeat Ratings reports. Three analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The average 12 month price objective among analysts that have updated their coverage on the stock in the last year is $23.20.

CSWC has been the topic of a number of research analyst reports. Weiss Ratings restated a “buy (b-)” rating on shares of Capital Southwest in a research note on Thursday, June 18th. B. Riley Financial lifted their price target on Capital Southwest from $24.00 to $24.50 and gave the company a “buy” rating in a research report on Friday, May 15th.

Trending Headlines about Capital Southwest

Here are the key news stories impacting Capital Southwest this week:

• Positive Sentiment: Quarterly earnings beat one major estimate. Capital Southwest reported fiscal first-quarter 2027 earnings of $0.58 per share, above the Zacks consensus estimate of $0.54. The result also included stable income and dividend increases, reinforcing the stock’s appeal to income-focused investors. Capital Southwest Tops Q1 Earnings and Revenue Estimates
• Positive Sentiment: Dividend support remains a key attraction. Reports highlighted stable income and dividend increases, which may help sustain demand for CSWC among investors seeking high current income. The company was also included in a list of high-yield dividend stocks trading below $25. Capital Southwest Reports Stable Income and Dividend Increases
• Positive Sentiment: Shareholder support for additional authorized shares is substantial. Management urged remaining shareholders to approve the proposal to increase authorized common shares. Approval could give CSWC greater flexibility to fund growth or investments, potentially supporting its business development strategy. Capital Southwest Urges Shareholders to Support Authorized Shares Proposal
• Neutral Sentiment: Results were broadly in line with prior company guidance. Management’s earnings-call update suggests operating performance was generally consistent with expectations, though investors may focus on the quality and sustainability of earnings. Capital Southwest Q1 2027 Earnings Call Transcript
• Negative Sentiment: Total investment income disappointed, and reported EPS figures vary by measure. One report cited $0.39 of EPS, below a $0.56 consensus estimate, while another cited adjusted earnings of $0.58. Revenue was approximately $61.1 million, close to estimates, but lower investment income and year-over-year EPS comparisons could limit enthusiasm. Capital Southwest Q1 Earnings and Investment Income
• Negative Sentiment: Authorized-share expansion carries potential dilution risk. Although the proposal improves financing flexibility, issuing additional shares could dilute existing shareholders if the capital is raised without sufficient investment returns.

Hedge Funds Weigh In On Capital Southwest

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Triumph Capital Management purchased a new stake in shares of Capital Southwest during the 3rd quarter valued at $28,000. Allied Private Wealth LLC purchased a new position in Capital Southwest in the second quarter worth $37,000. Tower Research Capital LLC TRC grew its position in Capital Southwest by 13,307.1% in the second quarter. Tower Research Capital LLC TRC now owns 1,877 shares of the asset manager’s stock worth $41,000 after acquiring an additional 1,863 shares in the last quarter. Osbon Capital Management LLC bought a new position in Capital Southwest in the fourth quarter valued at $55,000. Finally, CENTRAL TRUST Co bought a new position in Capital Southwest in the first quarter valued at $60,000. Hedge funds and other institutional investors own 23.42% of the company’s stock.

Capital Southwest Trading Up 3.3%

Capital Southwest stock opened at $24.72 on Wednesday. The stock has a market cap of $1.54 billion, a P/E ratio of 13.01 and a beta of 0.69. Capital Southwest has a fifty-two week low of $19.37 and a fifty-two week high of $24.86. The firm’s fifty day moving average price is $23.55 and its 200-day moving average price is $23.15. The company has a debt-to-equity ratio of 0.56, a quick ratio of 0.11 and a current ratio of 0.11.

Capital Southwest Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be paid a $0.1934 dividend. This represents a c) dividend on an annualized basis and a yield of 9.4%. The ex-dividend date of this dividend is Tuesday, September 15th. Capital Southwest’s dividend payout ratio (DPR) is currently 122.11%.

About Capital Southwest

Capital Southwest (NASDAQ: CSWC) is a publicly traded investment firm structured as a business development company (BDC) that provides customized financing solutions to middle-market companies across the United States. The firm offers a spectrum of debt and equity capital, including senior secured loans, mezzanine debt, and both preferred and common equity investments. By partnering with corporate management teams, Capital Southwest seeks to support growth initiatives, recapitalizations, acquisitions, and ownership transitions.

Founded in 1961 and headquartered in Dallas, Texas, Capital Southwest has cultivated a track record of long-term partnerships with privately held businesses and select public companies.