Capital Southwest
CSWC

$26

1.33%

Market Cap: 1.19B

About: Capital Southwest Corp is a U.S.-based investment company that specializes in providing customized financing to middle market companies across various industries. The company's investment objective is to produce attractive risk-adjusted returns by generating current income from debt investments and capital appreciation from equity and equity related investments. It focuses on providing flexible financing solutions through partnerships with business owners, management teams, and financial sponsors. The company's portfolio may include senior debt, second lien, and subordinated debt, preferred stocks, common stocks, and warrants. The primary source company's revenue comprises interest income and dividend income from investments made as well as management fees.

Employees: 27

0

Funds holding %

of 6,702 funds

0

Analysts bullish %

of 3 analysts

0

News positive %

of 8 articles

Fund manager confidence

Based on 2024 Q1 SEC filings by fund managers ($100M+ AUM)

104% more call options, than puts

Call options by funds: $4.99M | Put options by funds: $2.45M

72% more repeat investments, than reductions

Existing positions increased: 55 | Existing positions reduced: 32

12% more first-time investments, than exits

New positions opened: 28 | Existing positions closed: 25

9% more capital invested

Capital invested by funds: $239M [Q4 2023] → $261M (+$21.7M) [Q1 2024]

2% more funds holding

Funds holding: 134 [Q4 2023] → 137 (+3) [Q1 2024]

0% more funds holding in top 10

Funds holding in top 10: 2 [Q4 2023] → 2 (+0) [Q1 2024]

0.92% less ownership

Funds ownership: 25.26% [Q4 2023] → 24.34% (-0.92%) [Q1 2024]

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Research analyst outlook

3 Wall Street Analysts provided 1 year price forecasts over the past 6 months

Low target

$24

8%

downside

Avg. target

$26

2%

downside

High target

$27

2%

upside

3 analyst ratings

2 positive

67%

1 neutral

33%

0 negative

0%

JMP Securities Kevin Fischbeck	0%upside $26	Market Outperform Reiterated	26 Mar 2024
B. Riley Securities Bryce Rowe	8%downside $24	Neutral Maintained	31 Jan 2024
Raymond James Robert Dodd	2%upside $26.5	Outperform Maintained	31 Jan 2024

See Analyst Rankings

Financial journalist opinion

Based on 8 articles about CSWC published over the past 30 days

BDC Weekly Review: Private Lenders Are Flush With Cash

We take a look at the action in business development companies through the third week of July and highlight some of the key themes we are watching. BDCs are down 2% this week, flat month-to-date, with OCSL underperforming and TPVG outperforming. Blue Owl acquires Atalaya Capital, marking its third recent acquisition, pushing into asset-based credit market to diversify its corporate lending business.

BDC Weekly Review: Private Lenders Are Flush With Cash

Capital Southwest: Buy The Dip On This 9% Yielding Cash Cow

S&P 500 dividend yield has dropped to historical lows due to a rise in non-dividend or low-dividend paying stocks. Capital Southwest offers a much higher yielding way to fund retirement with an 8.8% dividend yield. CSWC's strong balance sheet, operating leverage, and diversified portfolio make it a compelling long-term investment choice.

Capital Southwest: Buy The Dip On This 9% Yielding Cash Cow

Capital Southwest: High Quality But Awaiting A Better Price Point

Capital Southwest has been a strong performer in the BDC sector, with a total return comprised of both price appreciation and a high distribution rate. CSWC's portfolio strategy focuses on lower middle market companies, with a large emphasis on first lien debt investments for stability. While CSWC's net investment income has benefited from higher interest rates, potential future rate cuts may impact the price, presenting a better entry opportunity.

Capital Southwest: High Quality But Awaiting A Better Price Point

Capital Southwest: An Expensive But Well Run BDC, 9% Yield

Income investing is popular, but many stocks have low dividend yields. The BDC sector is small but provides opportunities for ample dividends. We analyze Capital Southwest in 6 key areas, and compare its valuation with its peers. CSWC is internally managed, and so it saves on management fees, passing the savings to shareholders.

Capital Southwest: An Expensive But Well Run BDC, 9% Yield

Capital Southwest Announces Preliminary Estimate of First Quarter 2025 Operating Results and Earnings Release and Conference Call Schedule

DALLAS, July 17, 2024 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, is pleased to announce its preliminary operating results for the first quarter of its 2025 fiscal year (quarter ended June 30, 2024) and its first quarter 2025 earnings release and conference call schedule.

Capital Southwest Announces Preliminary Estimate of First Quarter 2025 Operating Results and Earnings Release and Conference Call Schedule

12%+ Dividend Yields Duel

This is a head-to-head battle between two of the high yielders. Both are at least over 12%. This is a lesson in evaluating similar shares for differences in valuation. The emphasis here is on the change in valuation. These shares should have similar valuations, but they don't.

12%+ Dividend Yields Duel

I'm Banking On These 8% Yields For A Better Tomorrow

Reaching for higher yield doesn't always have to mean taking on too much risk. In this article, I highlight 2 picks with strong fundamentals and balance sheets. Chatham Lodging Trust Preferred Stock and Capital Southwest offer attractive yields above 8% and upside potential.

I'm Banking On These 8% Yields For A Better Tomorrow

The FED Will Likely Join The Rate Cut Party: 1 Stock To Buy Before And 1 After

Interest rates have been cut in countries outside the US, with expectations for the FED to follow suit, leading to potential stock market gains in the coming months. Agree Realty is a strong buy before FED rate cut, with potential for 24% upside in the next 2 years. Capital Southwest is overvalued at the moment, but may present a better entry price after interest rates are cut.

The FED Will Likely Join The Rate Cut Party: 1 Stock To Buy Before And 1 After

Very Overrated And Very Underrated High Yield Sectors

I love investing in high yield stocks. However, not all high yield subsectors are good investments all the time. I share one high yield subsector that Mr. Market is overrating and one that he is underrating.

Very Overrated And Very Underrated High Yield Sectors

Capital Southwest: Solid Investment, But Time Your Entry Carefully

Capital Southwest is a financial company lending to medium-sized businesses, with a 40% stock price increase in the last year. The company manages a high-risk, high-reward portfolio of loans and equity investments, with a focus on diverse industries and strong cash flows. While the company is undervalued when considering dividends, the interest rate risk poses a potential impact on financial results and dividend distribution.

Capital Southwest: Solid Investment, But Time Your Entry Carefully

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