Is Capital Southwest Corporation Stock (CSWC) On Track To Take Out All Time Highs?

Capital Southwest Co. share price (NASDAQ:CSWC) has quietly gone about adding this year, increasing 43.09% over the past 12 months, and taking out multi year highs.

With bullish adjustments to the earnings estimates of for the third quarter of 2025, the question needs to be asked as to whether CSWC is on track to take out all time highs from 2021. The earnings per share (EPS) forecast has been raised from the initial estimate of $0.65 to $0.66, underscoring the optimistic outlook for the company's financial performance in the upcoming quarter.

In a broader financial context, Capital Southwest's consensus estimate for the full year stands at $2.65 per share. Such consensus estimates stem from a collation of viewpoints from various equity research analysts who track and predict the financial outcomes of public companies like Capital Southwest.

However, while analysts are expecting higher earnings, their counterparts at JMP Securities have taken a more cautious stance on the company's stock. On May 15th, analysts at JMP Securities downgraded Capital Southwest's rating to “market perform” from “outperform”. A “market perform” rating typically suggests that the analysts believe the company’s stock will perform in line with the overall market or its sector, as opposed to “outperforming” its competitors.

Capital Southwest's stock began trading at $26.20 this past Monday. The company's shares have experienced a 12-month trading range between a low of $17.85 and a high of $27.22. As a financial metric, the company's market capitalisation currently stands at $1.13 billion, accompanied by a price-to-earnings (P/E) ratio of 12.78, indicating the market's valuation of its profitability. Furthermore, the firm has a beta of 1.19, which measures the volatility or systematic risk of Capital Southwest's stock in relation to the market as a whole.

From an income distribution perspective, Capital Southwest has recently announced a quarterly dividend of $0.57 per share to be paid (28th June) to shareholders of record on 14th June. This represents a dividend yield of 8.77%, increasing the payout ratio to 90.8%.

For those less familiar with Capital Southwest Corporation, the company operates within the financial sector, focusing on credit, private equity, and venture capital investments. Their scope typically involves dealings with middle market companies, with an exclusionary policy toward startups and publicly traded companies. This specialisation indicates a strategic positioning within a certain segment of the business financing and investment industry.

As the financial market continues to evolve, investors will undoubtedly monitor Capital Southwest's performance closely, especially in light of these latest analyst revisions and dividend declarations.