Capital Southwest director buys $5.2k in company stock By Investing.com

In a recent move, Ramona Lynn Rogers-Windsor, a director at Capital Southwest Corp (NASDAQ:), purchased shares of the company’s stock. On June 28, 2024, Rogers-Windsor acquired 200 shares at a price of $26.13 each, investing a total of $5,226.

This transaction has increased Rogers-Windsor’s holdings in Capital Southwest to a total of 12,798.2401 shares. The acquisition reflects a director’s confidence in the company and is often seen by investors as a positive signal about the company’s future prospects.

Capital Southwest Corp, headquartered in Dallas, Texas, is known for providing capital to middle-market companies. The recent purchase by a member of the company’s board underscores a commitment to the company’s growth and stability.

Investors and market watchers often pay close attention to insider transactions, as they can provide insights into the company’s performance and the views of those who know the company best. The details of these transactions are publicly filed and can be found in SEC filings.

The stock purchase by Rogers-Winsor comes amidst the company’s ongoing efforts to navigate the market and deliver value to shareholders. As with any insider transaction, this recent purchase by a director will likely be analyzed by investors as they make their investment decisions regarding Capital Southwest Corp.

In other recent news, Capital Southwest Corp has been the subject of significant analyst attention. B.Riley adjusted the price target for Capital Southwest, raising it to $25.00 from $24.00, while maintaining a Neutral rating. This decision followed the company’s Q4 2024 results, with Capital Southwest noted for its consistent risk profile, including low balance sheet leverage and substantial liquidity. The Neutral rating is attributed to a balanced risk/reward scenario for the company’s stock, currently trading at 157% of its net asset value (NAV).

In contrast, JMP Securities downgraded Capital Southwest to Market Perform from Market Outperform, citing valuation concerns. Despite a strong quarter with net investment income per share at $0.67 and total investment income reaching $46.4 million, the firm expressed concerns about the stock’s valuation. The company’s net asset value remained unchanged at $16.77, while its investment portfolio showed an 8% sequential increase, growing to $1.48 billion.

Further, Capital Southwest announced robust fiscal year 2024 results, with significant growth in its investment portfolio and pre-tax net investment income. The total investment portfolio expanded by 22% to $1.5 billion, while pre-tax net investment income rose by 18% to $2.72 per share. The company raised over $500 million in capital, underlining its solid market position and confidence in future growth.

InvestingPro Insights

As a director at Capital Southwest Corp (CSWC) demonstrates confidence in the company through a recent stock purchase, investors might be interested in key financial metrics and insights provided by InvestingPro. Capital Southwest, with a market capitalization of $1.2 billion, boasts a price-to-earnings (P/E) ratio of 12.7, which could suggest a potentially attractive valuation relative to earnings.

The company’s strong performance is also reflected in its impressive revenue growth, with the last twelve months as of Q4 2024 showing a substantial increase of 49.32%. This growth momentum is further illustrated by a quarterly revenue growth of 24.84% in Q4 2024. Moreover, Capital Southwest’s ability to maintain profitability is underscored by its basic and diluted earnings per share (EPS) of $2.05 for the same period.

InvestingPro Tips highlight that Capital Southwest not only pays a significant dividend to shareholders, indicated by a dividend yield of 9.69% as of mid-2024, but it has also maintained these payments for an impressive 42 consecutive years. Additionally, the company’s liquid assets exceed its short-term obligations, which could be a sign of financial stability and resilience.

For investors seeking further insights and tips, there are additional InvestingPro Tips available on Capital Southwest Corp, which can be accessed at https://www.investing.com/pro/CSWC. To enhance your investment analysis with these valuable tips, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

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