Sound Income Strategies LLC Increases Position in Capital Southwest Co. (NASDAQ:CSWC)

Sound Income Strategies LLC raised its position in Capital Southwest Co. (NASDAQ:CSWC – Get Rating) by 16.7% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 467,367 shares of the asset manager’s stock after purchasing an additional 66,718 shares during the quarter. Capital Southwest accounts for approximately 1.0% of Sound Income Strategies LLC’s portfolio, making the stock its 27th largest position. Sound Income Strategies LLC owned about 1.58% of Capital Southwest worth $7,992,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Kestra Advisory Services LLC increased its position in shares of Capital Southwest by 10.4% during the third quarter. Kestra Advisory Services LLC now owns 37,139 shares of the asset manager’s stock worth $629,000 after acquiring an additional 3,502 shares during the period. Confluence Investment Management LLC increased its position in shares of Capital Southwest by 5.5% during the fourth quarter. Confluence Investment Management LLC now owns 112,617 shares of the asset manager’s stock worth $1,926,000 after acquiring an additional 5,849 shares during the period. Grace & White Inc. NY increased its position in shares of Capital Southwest by 30.9% during the third quarter. Grace & White Inc. NY now owns 169,471 shares of the asset manager’s stock worth $2,871,000 after acquiring an additional 40,000 shares during the period. Mraz Amerine & Associates Inc. purchased a new stake in shares of Capital Southwest during the third quarter worth $365,000. Finally, All Season Financial Advisors Inc. increased its holdings in Capital Southwest by 4.7% in the third quarter. All Season Financial Advisors Inc. now owns 16,820 shares of the asset manager’s stock valued at $285,000 after buying an additional 759 shares during the last quarter. Hedge funds and other institutional investors own 26.36% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on CSWC shares. B. Riley increased their target price on Capital Southwest from $20.00 to $21.50 and gave the company a “buy” rating in a report on Wednesday, February 1st. JMP Securities reissued a “market outperform” rating and issued a $22.00 target price on shares of Capital Southwest in a report on Monday, March 13th. StockNews.com started coverage on Capital Southwest in a report on Thursday. They issued a “hold” rating on the stock. Finally, TheStreet lowered Capital Southwest from a “b-” rating to a “c” rating in a report on Monday, January 30th. Two investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $21.88.

Capital Southwest Stock Performance

NASDAQ CSWC traded down $0.22 during trading hours on Friday, hitting $17.00. The company had a trading volume of 355,118 shares, compared to its average volume of 290,087. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.15 and a current ratio of 0.15. Capital Southwest Co. has a 1-year low of $16.28 and a 1-year high of $24.40. The company has a market cap of $587.50 million, a PE ratio of 12.41 and a beta of 1.20. The business has a 50 day moving average of $18.71 and a 200-day moving average of $18.23.

Capital Southwest (NASDAQ:CSWC – Get Rating) last released its quarterly earnings data on Tuesday, January 31st. The asset manager reported $0.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.57 by $0.05. Capital Southwest had a net margin of 33.53% and a return on equity of 12.21%. The company had revenue of $32.77 million during the quarter, compared to the consensus estimate of $30.12 million. During the same quarter in the prior year, the firm posted $0.51 earnings per share. As a group, equities research analysts expect that Capital Southwest Co. will post 2.02 EPS for the current year.

Capital Southwest Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 31st. Shareholders of record on Wednesday, March 15th will be paid a $0.58 dividend. This represents a $2.32 annualized dividend and a yield of 13.65%. The ex-dividend date of this dividend is Tuesday, March 14th. This is an increase from Capital Southwest’s previous quarterly dividend of $0.52. Capital Southwest’s dividend payout ratio is currently 154.74%.

Capital Southwest Company Profile

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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.