Fidus Investment Corporation (NASDAQ:FDUS) Short Interest Up 50.8% in August

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 recipient of a large growth in short interest during the month of August. As of August 15th, there was short interest totaling 413,300 shares, a growth of 50.8% from the July 31st total of 274,000 shares. Based on an average daily trading volume, of 174,100 shares, the short-interest ratio is currently 2.4 days. Approximately 1.2% of the company's shares are sold short. Approximately 1.2% of the company's shares are sold short. Based on an average daily trading volume, of 174,100 shares, the short-interest ratio is currently 2.4 days.

Analysts Set New Price Targets

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

Institutional Investors Weigh In On Fidus Investment

A number of large investors have recently made changes to their positions in the business. Quarry LP purchased a new stake in Fidus Investment in the first quarter worth about $28,000. ORG Partners LLC bought a new position in shares of Fidus Investment in the 1st quarter worth approximately $29,000. AdvisorNet Financial Inc raised its position in shares of Fidus Investment by 137.4% in the 2nd quarter. AdvisorNet Financial Inc now owns 1,728 shares of the asset manager's stock worth $35,000 after acquiring an additional 1,000 shares in the last quarter. First Horizon Advisors Inc. raised its position in shares of Fidus Investment by 154.8% in the 2nd quarter. First Horizon Advisors Inc. now owns 2,658 shares of the asset manager's stock worth $54,000 after acquiring an additional 1,615 shares in the last quarter. Finally, MeadowBrook Investment Advisors LLC raised its position in shares of Fidus Investment by 90.0% in the 2nd quarter. MeadowBrook Investment Advisors LLC now owns 2,850 shares of the asset manager's stock worth $58,000 after acquiring an additional 1,350 shares in the last quarter. 28.14% of the stock is currently owned by institutional investors.

Fidus Investment Stock Performance

Fidus Investment stock traded down $0.04 during midday trading on Friday, hitting $21.47. 194,346 shares of the company's stock were exchanged, compared to its average volume of 167,442. Fidus Investment has a 52-week low of $16.70 and a 52-week high of $23.55. The stock has a 50-day moving average price of $21.25 and a two-hundred day moving average price of $20.46. The company has a market cap of $759.61 million, a P/E ratio of 9.29 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 EPS for the quarter, topping the consensus estimate 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. As a group, sell-side analysts expect that Fidus Investment will post 2.28 earnings per share for the current year.

Fidus Investment Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 25th. Investors of record on Thursday, September 18th will be issued a dividend of $0.57 per share. The ex-dividend date is Thursday, September 18th. This represents a $2.28 annualized dividend and a yield of 10.6%. This is a boost from Fidus Investment's previous quarterly dividend of $0.11. Fidus Investment's dividend payout ratio (DPR) 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.