Fidus Investment (NASDAQ:FDUS) Announces Quarterly Earnings Results

Key Points

• Fidus Investment reported quarterly earnings of $0.57 per share, exceeding estimates by $0.04, with revenues reaching $39.97 million compared to an expected $37.42 million.
• The company announced a significant increase in its dividend, raising it to $0.57 per share from a previous $0.11, resulting in a substantial dividend yield of 800.0%.
• Analysts have responded positively, with LADENBURG THALM/SH SH upgrading the stock from "hold" to "strong-buy," reflecting growing confidence in Fidus Investment's performance.

Fidus Investment (NASDAQ:FDUS - Get Free Report) posted its quarterly earnings data on Thursday, August 7th. The asset manager reported $0.57 EPS for the quarter, topping the consensus estimate of $0.53 by $0.04, Zacks reports. Fidus Investment had a net margin of 51.88% and a return on equity of 11.52%. The business had revenue of $39.97 million for the quarter, compared to analyst estimates of $37.42 million.

Fidus Investment Stock Performance

Shares of NASDAQ:FDUS traded down $0.03 on Thursday, reaching $21.34. The company's stock had a trading volume of 153,569 shares, compared to its average volume of 156,194. Fidus Investment has a 52-week low of $16.70 and a 52-week high of $23.55. The company has a market cap of $755.01 million, a P/E ratio of 9.24 and a beta of 0.95. The company has a 50-day simple moving average of $20.74 and a 200 day simple moving average of $20.67.

Fidus Investment Increases Dividend

The firm also recently disclosed a -- dividend, which will be paid on Thursday, September 25th. Shareholders of record on Thursday, September 18th will be paid a $0.57 dividend. This represents a dividend yield of 800.0%. The ex-dividend date of this dividend is Thursday, September 18th. This is an increase from Fidus Investment's previous -- dividend of $0.11. Fidus Investment's dividend payout ratio is 74.46%.

Hedge Funds Weigh In On Fidus Investment

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Invesco Ltd. lifted its holdings in Fidus Investment by 2.2% during the 2nd quarter. Invesco Ltd. now owns 446,703 shares of the asset manager's stock valued at $9,023,000 after buying an additional 9,637 shares in the last quarter. MGB Wealth Management LLC increased its position in Fidus Investment by 2.1% during the 2nd quarter. MGB Wealth Management LLC now owns 89,775 shares of the asset manager's stock valued at $1,807,000 after purchasing an additional 1,821 shares during the period. Qube Research & Technologies Ltd increased its position in Fidus Investment by 39.8% during the 2nd quarter. Qube Research & Technologies Ltd now owns 64,929 shares of the asset manager's stock valued at $1,312,000 after purchasing an additional 18,489 shares during the period. Quantinno Capital Management LP purchased a new position in shares of Fidus Investment in the 2nd quarter worth approximately $549,000. Finally, Jane Street Group LLC purchased a new position in shares of Fidus Investment in the 1st quarter worth approximately $475,000. 28.14% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on FDUS. LADENBURG THALM/SH SH upgraded shares of Fidus Investment from a "hold" rating to a "strong-buy" rating in a research note on Friday, May 9th. Keefe, Bruyette & Woods upped their target price on shares of Fidus Investment from $20.00 to $21.50 and gave the company a "market perform" rating in a report on Monday. Finally, B. Riley cut shares of Fidus Investment from a "buy" rating to a "neutral" rating and upped their target price for the company from $22.00 to $22.50 in a report on Wednesday.

Fidus Investment Company Profile

Fidus Investment Corporation is a business development company. It specializing in leveraged buyouts, refinancings, change of ownership transactions, recapitalizations, strategic acquisitions, mezzanine, growth capital, business expansion, lower middle market investments, debt investments, subordinated and second lien loans, senior secured and unitranche debt, preferred equity, warrants, subordinated debt, senior subordinated notes, junior secured loans, and unitranche loans.