Kingstone Capital Partners Texas LLC Makes New $549.14 Million Investment in Fidus Investment Corporation $FDUS

Key Points

• Kingstone Capital Partners Texas LLC acquired a significant stake in Fidus Investment Corporation, purchasing 27,409,759 shares valued at approximately $549 million, representing about 78.92% ownership.
• Fidus Investment Corporation announced a quarterly dividend of $0.57, up from $0.11, reflecting a positive shift with an annualized yield of 11.0%.
• Despite recent developments, Fidus Investment's stock has seen a 1.9% decline in trading, with analysts offering a moderate buy rating and an average price target of $22.00.

Kingstone Capital Partners Texas LLC bought a new position in shares of Fidus Investment Corporation (NASDAQ:FDUS - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 27,409,759 shares of the asset manager's stock, valued at approximately $549,138,000. Kingstone Capital Partners Texas LLC owned 78.92% of Fidus Investment as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds also recently modified their holdings of the company. Wealth Enhancement Advisory Services LLC raised its holdings in shares of Fidus Investment by 36.0% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 18,045 shares of the asset manager's stock worth $368,000 after purchasing an additional 4,778 shares during the period. Envestnet Asset Management Inc. increased its holdings in shares of Fidus Investment by 7.8% in the 1st quarter. Envestnet Asset Management Inc. now owns 324,277 shares of the asset manager's stock worth $6,612,000 after acquiring an additional 23,478 shares during the period. Cetera Investment Advisers increased its holdings in shares of Fidus Investment by 10.6% in the 1st quarter. Cetera Investment Advisers now owns 335,498 shares of the asset manager's stock worth $6,841,000 after acquiring an additional 32,077 shares during the period. Columbus Macro LLC increased its holdings in shares of Fidus Investment by 7.8% in the 1st quarter. Columbus Macro LLC now owns 287,622 shares of the asset manager's stock worth $5,865,000 after acquiring an additional 20,727 shares during the period. Finally, D.A. Davidson & CO. increased its holdings in shares of Fidus Investment by 42.5% in the 1st quarter. D.A. Davidson & CO. now owns 44,727 shares of the asset manager's stock worth $912,000 after acquiring an additional 13,344 shares during the period. 28.14% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

FDUS has been the subject of a number of recent analyst reports. Keefe, Bruyette & Woods increased their target price on shares of Fidus Investment from $20.00 to $21.50 and gave the company a "market perform" rating in a research report on Monday, August 11th. B. Riley cut shares of Fidus Investment from a "buy" rating to a "neutral" rating and raised their target price for the stock from $22.00 to $22.50 in a report on Wednesday, August 13th. Finally, LADENBURG THALM/SH SH upgraded shares of Fidus Investment to a "strong-buy" rating in a report on Wednesday, August 13th. One analyst has rated the stock with a Strong Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Fidus Investment presently has an average rating of "Moderate Buy" and an average target price of $22.00.

Fidus Investment Trading Down 2.0%

Shares of FDUS stock traded down $0.41 on Monday, reaching $20.38. The company had a trading volume of 292,670 shares, compared to its average volume of 202,927. The company has a 50-day moving average of $21.25 and a 200-day moving average of $20.37. Fidus Investment Corporation has a 12 month low of $16.70 and a 12 month high of $23.55. The stock has a market cap of $721.04 million, a PE ratio of 8.82 and a beta of 0.90.

Fidus Investment (NASDAQ:FDUS - Get Free Report) last posted its earnings results on Thursday, August 7th. The asset manager reported $0.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.53 by $0.04. Fidus Investment had a return on equity of 11.52% and a net margin of 51.88%.The business had revenue of $39.97 million during the quarter, compared to analysts' expectations of $37.42 million. Sell-side analysts anticipate that Fidus Investment Corporation will post 2.28 earnings per share for the current year.

Fidus Investment Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 25th. Stockholders of record on Thursday, September 18th will be issued a $0.57 dividend. This represents a $2.28 annualized dividend and a dividend yield of 11.2%. The ex-dividend date of this dividend is Thursday, September 18th. This is a boost from Fidus Investment's previous quarterly dividend of $0.11. Fidus Investment's payout ratio is currently 74.46%.

About Fidus Investment

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.