Fidus Investment (NASDAQ:FDUS) Stock Surpasses 200-Day Moving Average – Should Investors Consider Selling?

On January 4th, 2025, shares of Fidus Investment Co. (NASDAQ:FDUS) saw significant movement, crossing above the critical 200-day moving average during trading on Friday. The stock's 200-day moving average stands at $19.97, with Fidus shares hitting a high of $21.40 before last trading at $21.19. The trading volume for the day reached 189,215 shares.

Current Performance of Fidus Investment

Fidus Investment's performance has shown a slight decline, with the stock down 0.6% at the time of the report. The company holds a market capitalization of $718.66 million and boasts a price-to-earnings (P/E) ratio of 7.57, complemented by a beta of 1.39. It is important to note that the stock has a 50-day moving average price of $20.62, indicating some variance in short-term trading behavior.

Recent Earnings Report and Analysis

Fidus Investment released its quarterly earnings data on October 31st, detailing a robust performance. The asset manager reported earnings per share (EPS) of $0.61, which surpassed analysts' expectations of $0.57 by a margin of $0.04. Total revenue for the quarter reached $38.38 million, exceeding the consensus estimate of $36.43 million. The company also demonstrated a return on equity of 12.11% and a remarkable net margin of 60.09%. When compared to the same quarter from the previous year, where the EPS was $0.68, the current figures reflect a strategic adjustment in their operations. Analysts predict that Fidus Investment will achieve an EPS of 2.28 for the current fiscal year.

Dividend Information

In a positive note for investors, Fidus Investment announced an increase in its quarterly dividend. A dividend of $0.61 per share was paid out on December 27th, 2024, following a record date of December 17th. This marks an increase from the previous quarterly dividend of $0.57. The annualized dividend now stands at $2.44, providing a yield of 11.51%. The dividend payout ratio is currently recorded at 61.43%, suggesting a healthy return for shareholders.

Institutional Investors' Activities

Several hedge funds have recently adjusted their positions in Fidus Investment, indicating growing interest among institutional investors. Van ECK Associates Corp increased its position by 11.5% during the third quarter, now holding 809,411 shares valued at approximately $15.8 million. Meanwhile, Cetera Investment Advisers boosted its holdings by 18.1%, now owning 233,826 shares worth $4.55 million. Hennion & Walsh Asset Management purchased a new position valued around $683,000, while Envestnet Asset Management raised its stake by 17.4%. Franklin Resources also enhanced its holdings by 37.0%. Currently, institutional investors hold about 28.14% of the stock, reflecting a strong institutional interest in Fidus Investment.

About Fidus Investment Corporation

Fidus Investment Corporation operates as a business development company (BDC) focusing on a diverse range of financial activities. These include leveraged buyouts, refinancings, ownership transitions, recapitalizations, strategic acquisitions, mezzanine and growth capital, business expansion initiatives, as well as low middle-market investments and various types of debt and equity financing.

Fidus, Investment, Stock