Fidus Investment (NASDAQ:FDUS) Stock Crosses Above 200-Day Moving Average – Is It Time to Sell?

Fidus Investment Co. (NASDAQ:FDUS) recently saw its share price surpass the significant 200-day moving average during trading sessions on January 4th, 2025. This moving average is noted to be $19.97, with the stock achieving a high of $21.40 before settling at $21.19. A total of 189,215 shares were traded during this time.

Current Market Standing of Fidus Investment

Currently, the stock has recorded a slight decrease of 0.6%. Its total market capitalization is estimated at $718.66 million. The stock’s price-to-earnings (P/E) ratio stands at 7.57, and it has a beta of 1.39, indicating a relatively higher volatility compared to the market. The company is also tracking a fifty-day moving average price of $20.62 alongside its 200-day average.

Latest Earnings Report

On October 31st, the company published its quarterly earnings report, reflecting a notable performance. Fidus Investment recorded earnings of $0.61 per share, which exceeded the analysts’ predictions of $0.57. The revenue for the quarter reached $38.38 million, surpassing the consensus estimate of $36.43 million. The company reported a return on equity (ROE) of 12.11% and a robust net margin of 60.09%. In the same quarter of the previous year, the reported EPS was $0.68. Analysts are predicting that Fidus Investment will achieve an EPS of 2.28 for the current fiscal year.

Dividend Increase Announced

In a positive development for shareholders, Fidus Investment declared an increase in its quarterly dividend. On December 27th, a dividend of $0.61 per share was distributed to investors, marking an increase from its prior dividend of $0.57. This increase signifies an annualized dividend of $2.44, providing a yield of 11.51%. Currently, the dividend payout ratio at Fidus Investment stands at 61.43%.

Hedge Fund Activity

In recent trading sessions, several hedge funds have adjusted their positions in Fidus Investment. Notably, Van ECK Associates Corp raised its stake by 11.5% during the third quarter, resulting in ownership of 809,411 shares valued at approximately $15.8 million. Additionally, Cetera Investment Advisers increased its holdings by 18.1% in the second quarter, acquiring 233,826 shares of the company worth around $4.55 million. Hennion & Walsh Asset Management purchased a new position valued at about $683,000 in the third quarter, while Envestnet Asset Management increased its stake by 17.4%. Franklin Resources also amplified its holdings by 37.0%, now owning approximately 116,472 shares valued at $2.27 million. Approximately 28.14% of Fidus Investment’s stock is currently held by institutional investors.

Understanding Fidus Investment Corporation

Fidus Investment Corporation is a well-established business development company, specializing in a variety of financial services. Its focus areas include leveraged buyouts, recapitalizations, mezzanine financing, growth capital, strategic acquisitions, and various forms of debt investments. This diverse approach enables them to cater to lower middle-market investments effectively.

Conclusion

With Fidus Investment (NASDAQ:FDUS) touching its 200-day moving average, market watchers are questioning whether it's time to sell. Analysts and investors will be closely monitoring its performance and any future earnings announcements to make informed decisions regarding their investments.

Fidus, Investment, Stock