Oppenheimer analyst Chris Kotowski maintained a Buy rating on Fidus Investment Corporation (FDUS) today and set a price target of $18. The company’s shares opened today at $15.06, close to its 52-week high of $15.76.
Kotowski observed:
“With most BDCs, one is satisfied with earnings reports where the company boringly covers the dividend out of operating net investment income (NII). Fidus has generally done that, but with its business model in which it has taken equity stakes in 94% of its portfolio companies, there is occasionally and over time upside to that. Just- reported 4Q18 was just such a quarter. Recall that in 4Q, the leveraged loan index fell ~4.6% and that many BDCs showed NAVs down 2-4%. FDUS, by contrast, had strong adjusted NII of $0.46 per share, well above our $0.36 estimate, and NAV increased from $16.41 to $16.47 per share. We continue to recommend the stock.”
According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 10.6% and a 62.2% success rate. Kotowski covers the Financial sector, focusing on stocks such as Apollo Global Management LLC, Oaktree Capital Group Llc, and Solar Senior Capital Ltd.
The the analyst consensus on Fidus Investment Corporation is currently a Hold rating.
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The company has a one-year high of $15.76 and a one-year low of $11.48. Currently, Fidus Investment Corporation has an average volume of 124K.
Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FDUS in relation to earlier this year.
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Fidus Investment Corp operates as an externally managed business development company. It provides customized debt and equity financing solutions to lower middle-market companies. The company was founded on February 14, 2011 and is headquartered in Evanston, IL.
