Fidus Investment (NASDAQ:FDUS) Stock Surpasses 200-Day Moving Average – What Does It Mean for Investors?

On January 4th, 2025, Fidus Investment Co. (NASDAQ:FDUS) made headlines as its stock price exceeded the important technical indicator known as the two hundred day moving average during trading. This average currently sits at $19.97, and during the session, shares peaked at $21.40. By the closing bell, Fidus Investment shares were last seen trading at $21.19, with a robust trading volume of 189,215 shares.

Fidus Investment Stock Performance

Despite crossing above its two hundred day moving average, the stock experienced a slight decline of 0.6%. With a total market capitalization of approximately $718.66 million, Fidus Investment boasts a price-to-earnings (P/E) ratio of 7.57 and a beta of 1.39, indicating that the stock is somewhat more volatile than the market as a whole. Additionally, the company has a fifty day moving average of $20.62, reinforcing its recent performance trends.

Latest Earnings Report

The firm released its quarterly earnings data on October 31st, reporting earnings per share (EPS) of $0.61, exceeding analyst expectations of $0.57 by a margin of $0.04. This performance was complemented by revenues of $38.38 million for the quarter, outpacing the consensus estimate of $36.43 million. The company achieved a return on equity of 12.11% alongside a notable net margin of 60.09%. For reference, during the same quarter last year, Fidus recorded an EPS of $0.68. Analysts predict that Fidus Investment will average 2.28 EPS for the current fiscal year.

Dividend Announcement

In addition to positive earnings, Fidus Investment has recently declared an increase in its quarterly dividend. Paid on December 27th, the new dividend is $0.61 per share, a rise from the previous quarterly dividend of $0.57. The ex-dividend date was December 17th. Annually, this translates to a $2.44 dividend, boasting a yield of 11.51%. The company's current dividend payout ratio stands at approximately 61.43%.

Institutional Investment Insights

Fidus Investment’s stock has attracted significant institutional trading activity. In the third quarter, Van ECK Associates Corp raised its position by 11.5%, acquiring an additional 83,538 shares, and holds now a total of 809,411 shares valued at around $15.8 million. Similarly, Cetera Investment Advisers boosted its stakes by 18.1% during the second quarter, while other firms, like Hennion & Walsh Asset Management Inc., Envestnet Asset Management Inc., and Franklin Resources Inc. have also adjusted their positions, indicating strong interest among institutional investors. Overall, institutional ownership reflects 28.14% of Fidus Investment’s stock.

Company Profile

Fidus Investment Corporation operates as a business development company. Its area of expertise includes leveraged buyouts, refinancings, change of ownership transactions, strategic acquisitions, as well as providing various types of debt investments including subordinated loans, senior secured debt, and unitranche loans. This diversified approach allows Fidus Investment to sustain growth and potentially yield strong returns for its investors.

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