Kingstone Capital Partners Texas LLC Invests $549.14 Million 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 acquired a new position in shares of Fidus Investment Corporation (NASDAQ:FDUS - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 27,409,759 shares of the asset manager's stock, valued at approximately $549,138,000. Kingstone Capital Partners Texas LLC owned about 78.92% of Fidus Investment at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently bought and sold shares of FDUS. Ethos Financial Group LLC acquired a new stake in Fidus Investment during the first quarter worth about $2,740,000. Baird Financial Group Inc. increased its position in Fidus Investment by 46.1% during the first quarter. Baird Financial Group Inc. now owns 283,093 shares of the asset manager's stock worth $5,772,000 after purchasing an additional 89,386 shares during the last quarter. Virtu Financial LLC acquired a new stake in Fidus Investment during the first quarter worth about $1,045,000. MQS Management LLC acquired a new stake in Fidus Investment during the first quarter worth about $936,000. Finally, Cetera Investment Advisers increased its position in Fidus Investment by 10.6% during the first quarter. Cetera Investment Advisers now owns 335,498 shares of the asset manager's stock worth $6,841,000 after purchasing an additional 32,077 shares during the last quarter. 28.14% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the stock. B. Riley cut shares of Fidus Investment from a "buy" rating to a "neutral" rating and raised their price objective for the stock from $22.00 to $22.50 in a research report on Wednesday, August 13th. Keefe, Bruyette & Woods lifted their price target 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. Finally, LADENBURG THALM/SH SH upgraded shares of Fidus Investment to a "strong-buy" rating in a research report on Wednesday, August 13th. One investment analyst has rated the stock with a Strong Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $22.00.

Fidus Investment Stock Up 0.6%

NASDAQ FDUS traded up $0.12 on Tuesday, hitting $20.50. 78,988 shares of the stock were exchanged, compared to its average volume of 202,228. Fidus Investment Corporation has a fifty-two week low of $16.70 and a fifty-two week high of $23.55. The company has a market cap of $725.43 million, a PE ratio of 8.88 and a beta of 0.90. The company has a 50-day moving average price of $21.23 and a 200-day moving average price of $20.36.

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

Fidus Investment Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 25th. Shareholders of record on Thursday, September 18th will be issued a dividend of $0.57 per share. This is a boost from Fidus Investment's previous quarterly dividend of $0.11. The ex-dividend date is Thursday, September 18th. This represents a $2.28 annualized dividend and a yield of 11.1%. Fidus Investment's dividend payout ratio (DPR) is presently 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.