Capital Southwest (NASDAQ:CSWC) Issues Quarterly Earnings Results, Hits Estimates

Capital Southwest (NASDAQ:CSWC) posted its quarterly earnings results on Monday. The asset manager reported $0.64 EPS for the quarter, meeting the consensus estimate of $0.64, Zacks reports. The firm had revenue of $61.45 million during the quarter, compared to analysts’ expectations of $57.37 million. Capital Southwest had a return on equity of 13.64% and a net margin of 39.79%.During the same quarter last year, the firm earned $0.63 earnings per share.

Capital Southwest Trading Down 1.2%

NASDAQ:CSWC opened at $23.15 on Tuesday. The company has a quick ratio of 0.16, a current ratio of 0.16 and a debt-to-equity ratio of 0.26. The stock has a fifty day simple moving average of $22.39 and a 200-day simple moving average of $22.05. The company has a market capitalization of $1.33 billion, a PE ratio of 14.38 and a beta of 0.76. Capital Southwest has a 52-week low of $17.46 and a 52-week high of $23.86.

Capital Southwest Announces Dividend

The company also recently declared a monthly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be given a $0.1934 dividend. The ex-dividend date is Friday, March 13th. This represents a c) dividend on an annualized basis and a dividend yield of 10.0%. Capital Southwest’s dividend payout ratio (DPR) is currently 144.10%.

Hedge Funds Weigh In On Capital Southwest

Several institutional investors and hedge funds have recently modified their holdings of the company. Goldman Sachs Group Inc. raised its holdings in Capital Southwest by 246.5% in the first quarter. Goldman Sachs Group Inc. now owns 257,672 shares of the asset manager’s stock valued at $5,751,000 after buying an additional 183,313 shares during the period. HRT Financial LP increased its position in shares of Capital Southwest by 176.0% in the second quarter. HRT Financial LP now owns 242,080 shares of the asset manager’s stock worth $5,335,000 after acquiring an additional 154,384 shares in the last quarter. Marshall Wace LLP raised its stake in shares of Capital Southwest by 71.4% in the 3rd quarter. Marshall Wace LLP now owns 252,245 shares of the asset manager’s stock valued at $5,514,000 after acquiring an additional 105,083 shares during the period. Prevail Innovative Wealth Advisors LLC acquired a new position in shares of Capital Southwest during the 2nd quarter valued at $1,243,000. Finally, Brevan Howard Capital Management LP purchased a new stake in Capital Southwest during the 2nd quarter worth $1,201,000. Hedge funds and other institutional investors own 23.42% of the company’s stock.

Analyst Ratings Changes

A number of research firms have issued reports on CSWC. Weiss Ratings upgraded shares of Capital Southwest from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, January 28th. Raymond James Financial lowered Capital Southwest from an “outperform” rating to a “market perform” rating in a report on Tuesday, October 7th. Loop Capital restated a “buy” rating and set a $23.00 price target on shares of Capital Southwest in a report on Wednesday, November 5th. Capital One Financial set a $22.00 price objective on shares of Capital Southwest in a research report on Tuesday, November 4th. Finally, Noble Financial raised Capital Southwest to a “buy” rating in a research report on Wednesday, November 5th. Seven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $23.64.

Trending Headlines about Capital Southwest

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

• Positive Sentiment: Q3 results: Revenue beat consensus and the company reported solid investment income and pre‑tax net investment income of $34.6M ($0.60 pre‑tax per share). This supports earnings and dividend coverage. Capital Southwest’s (NASDAQ:CSWC) Q4 CY2025: Beats On Revenue
• Positive Sentiment: Origination and portfolio growth: The firm originated ~$241–244M in new credit commitments in the quarter and ended with a $2.0B investment portfolio and an 11.3% weighted average yield on debt investments — a clear growth/earnings driver. Capital Southwest Announces Financial Results for Third Fiscal Quarter Ended December 31, 2025
• Positive Sentiment: Shareholder distributions: Board declared regular monthly dividends ($0.1934/month) plus a $0.06 supplemental dividend (total $0.64 for the quarter), supporting income‑oriented investor interest. Capital Southwest Announces Financial Results for Third Fiscal Quarter Ended-Press Release
• Neutral Sentiment: Equity ATM capital raise: The company sold ~2.49M shares under its ATM for ~$52.6M — adds liquidity but dilutes existing shareholders; impact depends on how proceeds are deployed. Press Release – ATM Program Details
• Neutral Sentiment: EPS messaging mixed across outlets: some outlets report EPS beat vs. consensus ($0.64 vs ~$0.57), while others frame EPS as in‑line; analyst views and short‑term sentiment may therefore be volatile. Zacks – CSWC Q3 Earnings Match Estimates
• Negative Sentiment: Credit marks and non‑accruals: The credit portfolio recorded $8.7M of net depreciation and current non‑accruals with a fair value of $29.2M (~1.5% of portfolio), which raises watchpoints on credit quality. Press Release – Credit Quality Details
• Negative Sentiment: Rising expenses and leverage: Operating expenses (bonuses) and interest expense increased versus the prior quarter; the company recognized a $2.2M loss on extinguishment of debt and total liabilities rose — pressuring margins if trends continue. Press Release – Expenses & Leverage
• Negative Sentiment: Institutional flows and positioning: Data shows notable institutional position changes and mixed analyst price targets (median ~$23), which can amplify near‑term share volatility. Quiver Quant – Institutional Moves & Analyst Notes

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.