Short Interest in Fidus Investment Corporation (NASDAQ:FDUS) Increases By 50.8%

Key Points

• Short interest for Fidus Investment Corporation (FDUS) saw a significant increase of 50.8% in August, totaling 413,300 shares as of August 15th, indicating heightened bearish sentiment among traders.
• The company announced a quarterly dividend of $0.57 per share, representing an increase from its previous dividend, with a notable dividend yield of 10.7%.
• Fidus Investment reported a Q2 EPS of $0.57, beating analyst estimates by $0.04, and generated revenue of $39.97 million, surpassing the consensus estimate of $37.42 million.

Fidus Investment Corporation (NASDAQ:FDUS - Get Free Report) was the target of a significant growth in short interest in the month of August. As of August 15th, there was short interest totaling 413,300 shares, agrowthof50.8% from the July 31st total of 274,000 shares. Currently,1.2% of the company's stock are sold short. Based on an average daily trading volume, of 174,100 shares, the days-to-cover ratio is currently 2.4 days. Based on an average daily trading volume, of 174,100 shares, the days-to-cover ratio is currently 2.4 days. Currently,1.2% of the company's stock are sold short.

Fidus Investment Price Performance

FDUS stock remained flat at $21.39 during midday trading on Friday. The company's stock had a trading volume of 199,793 shares, compared to its average volume of 179,854. Fidus Investment has a 1-year low of $16.70 and a 1-year high of $23.55. The company has a market capitalization of $756.78 million, a price-to-earnings ratio of 9.26 and a beta of 0.90. The business has a 50 day moving average price of $21.16 and a 200 day moving average price of $20.50.

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

Fidus Investment Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 25th. Stockholders of record on Thursday, September 18th will be given a dividend of $0.57 per share. The ex-dividend date is Thursday, September 18th. This represents a $2.28 dividend on an annualized basis and a dividend yield of 10.7%. This is an increase from Fidus Investment's previous quarterly dividend of $0.11. Fidus Investment's dividend payout ratio is currently 74.46%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Quarry LP bought a new position in shares of Fidus Investment during the 1st quarter valued at approximately $28,000. ORG Partners LLC bought a new position in shares of Fidus Investment during the 1st quarter valued at approximately $29,000. AdvisorNet Financial Inc boosted its position in shares of Fidus Investment by 137.4% during the 2nd quarter. AdvisorNet Financial Inc now owns 1,728 shares of the asset manager's stock valued at $35,000 after acquiring an additional 1,000 shares during the last quarter. First Horizon Advisors Inc. boosted its position in shares of Fidus Investment by 154.8% during the 2nd quarter. First Horizon Advisors Inc. now owns 2,658 shares of the asset manager's stock valued at $54,000 after acquiring an additional 1,615 shares during the last quarter. Finally, MeadowBrook Investment Advisors LLC boosted its position in shares of Fidus Investment by 90.0% during the 2nd quarter. MeadowBrook Investment Advisors LLC now owns 2,850 shares of the asset manager's stock valued at $58,000 after acquiring an additional 1,350 shares during the last quarter. 28.14% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on FDUS. Keefe, Bruyette & Woods lifted their price target on Fidus Investment from $20.00 to $21.50 and gave the stock a "market perform" rating in a research report on Monday, August 11th. LADENBURG THALM/SH SH raised Fidus Investment to a "strong-buy" rating in a research report on Wednesday, August 13th. Finally, B. Riley downgraded Fidus Investment from a "buy" rating to a "neutral" rating and boosted their price target for the company from $22.00 to $22.50 in a research note 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. Based on data from MarketBeat, Fidus Investment has a consensus rating of "Moderate Buy" and a consensus price target of $22.00.

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.

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