In a recent transaction filed with the Securities and Exchange Commission, Ramona Lynn Rogers-Windsor, a director at Capital Southwest Corp (NASDAQ:CSWC), purchased 500 shares of common stock. The shares were acquired at a price of $23.0667 each, amounting to a total value of $11,533. Following this transaction, Rogers-Windsor holds a total of 16,156.9944 shares in the company. This acquisition reflects continued confidence in the company's prospects, as Rogers-Windsor has increased her stake in the Dallas-based investment firm.
In other recent news, Dallas-based investment firm Capital Southwest Corporation has been actively making financial moves. The firm launched a public offering of unsecured convertible notes due in 2029, managed by Oppenheimer & Co. The proceeds from the offering will be used to redeem its 4.50% Notes due 2026, repay a portion of the outstanding indebtedness under its senior secured revolving credit facility with ING Capital LLC, and for general corporate purposes.
In addition to the notes offering, Capital Southwest amended its equity distribution agreements, transitioning its "at-the-market" (ATM) offering program to a new shelf registration statement. This move allows the firm to sell shares of its common stock, potentially raising up to $1.0 billion.
On the earnings front, Capital Southwest reported pre-tax net investment income of $0.64 per share for the second quarter of fiscal year 2025, with a regular dividend declared at $0.58 per share. Despite a decrease in total investment income to $48.7 million, the firm's credit portfolio grew to $1.4 billion, predominantly backed by private equity firms.
In the same vein, the firm raised $21 million through its ATM program and expects significant net portfolio growth in the upcoming quarters. These recent developments underscore Capital Southwest's disciplined investment strategy and potential for future growth.
InvestingPro Insights
The recent insider purchase by Ramona Lynn Rogers-Windsor aligns with several positive indicators for Capital Southwest Corp (NASDAQ:CSWC). According to InvestingPro data, the company boasts a robust dividend yield of 11.12%, underscoring its commitment to shareholder returns. This is further supported by an InvestingPro Tip highlighting that CSWC pays a significant dividend to shareholders and has maintained dividend payments for an impressive 42 consecutive years.
The company's financial health appears solid, with InvestingPro data showing a revenue growth of 27.41% over the last twelve months. This growth trajectory is complemented by a strong EBITDA growth of 30.52% over the same period, indicating improving operational efficiency.
Despite these positive metrics, it's worth noting that 4 analysts have revised their earnings downwards for the upcoming period, according to an InvestingPro Tip. This could explain why the stock's current price of $22.76 is below the fair value of $25.50 based on analyst targets.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide valuable insights into CSWC's investment potential. These additional tips, along with real-time metrics, can help investors make more informed decisions about Capital Southwest Corp's stock.
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