Capital Southwest (NASDAQ: CSWC) stock rating downgraded by Zacks Investment Research

Capital Southwest (NASDAQ:CSWC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday, reports Zacks.com.

According to Zacks, “Capital Southwest Corporation is a venture capital investment firm whose objective is to achieve capital appreciation through long-term investments in companies considered to have favorable growth potential. The Company are focused on seed financings, expansion financings, managing buyouts and recapitalizations in a wide range of industry segments.The portfolio is made up of companies in which the Company holds major interests as well as a number of developing companies and marketable securities of established public companies.”

Separately, JMP Securities reissued a “buy” rating on Capital Southwest shares in a Wednesday, November 3, research report. Three equity research analysts gave the stock a hold rating and three gave the company a buy rating. According to data from MarketBeat, Capital Southwest has an average rating of “Buy” and an average target price of $26.50.

Shares of CSWC rose $0.02 during Monday trading hours, hitting $25.91. 110,145 shares were traded, against an average volume of 119,266. Capital Southwest has a fifty-two week low of $19.95 and a fifty-two week high of $28.41. The company has a debt ratio of 0.56, a current ratio of 0.10 and a quick ratio of 0.18. The company has a 50-day moving average of $25.36 and a 200-day moving average of $26.19. The company has a market capitalization of $619.92 million, a P/E ratio of 16.82, a price-to-earnings growth ratio of 13.90 and a beta of 1.17.

Capital Southwest Inc (NASDAQ:CSWC) last released its quarterly results on Monday, January 31. The asset manager reported EPS of $0.51 for the quarter, beating analyst consensus estimates of $0.47 by $0.04. Capital Southwest had a net margin of 42.58% and a return on equity of 10.50%. In the same period of the previous year, the company had earned earnings per share of $0.45. As a group, analysts expect Capital Southwest to post earnings per share of 1.86 for the current fiscal year.

In other Capital Southwest news, Chief Financial Officer Michael Scott Sarner acquired 3,355 shares in a trade dated Tuesday, Nov. 9. The shares were purchased at an average cost of $26.83 per share, for a total transaction of $90,014.65. The acquisition was disclosed in a legal filing with the SEC, accessible via this hyperlink. Insiders own 7.46% of the shares of the company.

Major investors have recently been buying and selling stocks. Van ECK Associates Corp increased its position in Capital Southwest shares by 13.3% in the fourth quarter. Van ECK Associates Corp now owns 379,026 shares of the asset manager worth $9,582,000 after buying an additional 44,394 shares during the period. Sound Income Strategies LLC increased its position in Capital Southwest shares by 1.1% in the fourth quarter. Sound Income Strategies LLC now owns 374,739 shares of the asset manager worth $9,473,000 after purchasing an additional 3,929 shares during the period. Two Sigma Advisers LP increased its position in Capital Southwest shares by 4.6% in the third quarter. Two Sigma Advisers LP now owns 203,900 shares of the asset manager worth $5,134,000 after purchasing an additional 9,000 shares during the period. Two Sigma Investments LP increased its position in Capital Southwest shares by 80.2% in the third quarter. Two Sigma Investments LP now owns 190,508 shares of the asset manager worth $4,797,000 after purchasing an additional 84,817 shares during the period. Finally, BlackRock Inc. increased its position in Capital Southwest shares by 17.0% in the third quarter. BlackRock Inc. now owns 149,306 shares of the asset manager worth $3,759,000 after purchasing an additional 21,730 shares during the period. Institutional investors hold 24.48% of the company’s shares.

About the Southwest Capital

Capital Southwest is a public business development company with total assets of $496 million as of June 30, 2010. We provide patient capital to exceptional companies with significant growth potential. As a public company, we have the ability to hold investments indefinitely, which has provided the management teams of our holdings with a stable ownership platform since our inception in 1961.

See also

Get a Free Copy of Zacks Research Report on Capital Southwest (CSWC)

For more information on Zacks Investment Research’s research offerings, visit Zacks.com

This instant alert was powered by MarketBeat’s narrative science technology and financial data to provide readers with the fastest and most accurate reports. This story was reviewed by MarketBeat’s editorial team prior to publication. Please send questions or comments about this story to [email protected]

Should you invest $1,000 in Capital Southwest right now?

Before you consider Capital Southwest, you’ll want to hear this.

MarketBeat tracks daily the highest rated and most successful research analysts on Wall Street and the stocks they recommend to their clients. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the market takes off…and Capital Southwest didn’t make the list.

While Capital Southwest currently has a “Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.

See the 5 actions here