EVANSTON, IL – Fidus Investment (NASDAQ:FDUS) Corporation (NASDAQ:FDUS) has announced the resignation of Charles D. Hyman from its Board of Directors, effective October 29, 2024. The company disclosed the departure in a recent filing with the Securities and Exchange Commission.
Mr. Hyman, who also served on the company's Audit and Compensation Committee, and Nominating and Corporate Governance Committee, cited no dispute or disagreement as the reason for his departure. The company expressed gratitude for Mr. Hyman's contributions during his tenure and wished him well in his future endeavors.
In response to Mr. Hyman's upcoming resignation, the Board decided on Wednesday to reduce the number of directors from six to five, which will also take effect on October 29, 2024. This decision aligns with the changes in the board's composition following Mr. Hyman's exit.
In other recent news, Fidus Investment Corporation reported robust earnings for Q2 2024. The firm's adjusted net investment income saw a significant rise to $18.4 million, a 17.7% increase, generating substantial realized gains from its equity portfolio. The company's new investments totaled $62.4 million, with an additional $44.6 million in follow-on investments, expanding the portfolio to a fair value of $1.1 billion.
Despite slower market conditions for mergers and acquisitions, Fidus Investment maintains a positive outlook for the year, expecting reasonable deal flow and M&A activity. The company is also pursuing an SBIC license and has expanded its credit facility.
CEO Edward Ross emphasized the firm's investment strategy, focusing on high-quality, cash-generating companies, and noted the company's strong liquidity position, with total liquidity at the quarter's end standing at $115.8 million. The firm's portfolio, comprising 86 companies, continues to show strength, with non-accruals remaining under 1%.
InvestingPro Insights
As Fidus Investment Corporation (NASDAQ:FDUS) navigates this change in its board composition, investors may find additional context from recent financial data and expert insights valuable. According to InvestingPro, FDUS boasts a remarkably low P/E ratio of 6.05, suggesting the stock might be undervalued relative to its earnings. This could be particularly interesting for value investors in light of the recent corporate governance changes.
The company's financial health appears robust, with InvestingPro data showing a significant revenue growth of 25.63% over the last twelve months as of Q2 2024. This growth trajectory aligns well with FDUS's business model of providing financing solutions to lower middle-market companies, which often have high growth potential.
InvestingPro Tips highlight that FDUS "pays a significant dividend to shareholders" and "has maintained dividend payments for 14 consecutive years." With a current dividend yield of 13.49%, income-focused investors might find FDUS particularly attractive, especially considering the company's consistent dividend history amidst changing market conditions and internal transitions.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips for FDUS, providing a more comprehensive view of the company's financial position and market performance.
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