CSWC Stock Summary and Trading Ideas (Capital Southwest | NASDAQ:CSWC)

Capital Southwest Corp is an us-based investment company that specializes in providing customized financing to middle market companies across various industries. The company's investment objective 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 partnership with business owners, management teams, and financial sponsors. The company's portfolio may include senior debt, second lien and subordinated debt, preferred stock and common stock and warrants. The primary source company's revenue comprises interest income and dividend income from investments made as well as management fees.

Capital Southwest trades on the NASDAQ stock market under the symbol CSWC.

As of April 19, 2024, CSWC stock price climbed to $25.06 with 120,305 million shares trading.

CSWC has a beta of 0.30, meaning it tends to be less sensitive to market movements. CSWC has a correlation of 0.05 to the broad based SPY ETF.

CSWC has a market cap of $1.08 billion. This is considered a Small Cap stock.

Last quarter Capital Southwest reported $49 million in Revenue and $.70 earnings per share. This beat revenue expectation by $3 million and exceeded earnings estimates by $.04.

In the last 3 years, CSWC stock traded as high as $28.41 and as low as $16.28.

The top ETF exchange traded funds that CSWC belongs to (by Net Assets): BIZD, PBDC, VPC, KBWD.

CSWC has outperformed the market in the last year with a price return of +50.7% while the SPY ETF gained +21.5%. However, in the short term, CSWC had mixed performance relative to the market. It has underperformed in the last 3 months, returning +1.3% vs +4.5% return in SPY. But in the last 2 weeks, CSWC shares have fared better than the market returning +1.8% compared to SPY -3.2%.

CSWC support price is $24.52 and resistance is $25.04 (based on 1 day standard deviation move). This means that using the most recent 20 day stock volatility and applying a one standard deviation move around the stock's closing price, stastically there is a 67% probability that CSWC stock will trade within this expected range on the day.