Fidelity D&D Bancorp Sees Significant Drop in Short Interest

Fidelity D&D Bancorp Inc. (NASDAQ:FDBC) experienced a notable decrease in short interest during December 2023. As of December 31, short interest totaled 19,425 shares, marking a decline of 30.1% from the previous total of 27,782 shares reported on December 15. Currently, approximately 0.4% of the company’s shares are short sold, indicating a relatively low level of investor skepticism.

The average daily trading volume for the stock stands at 9,214 shares, resulting in a days-to-cover ratio of 2.1 days. This measure suggests that it would take just over two days for short sellers to cover their positions based on current trading activity.

Stock Performance and Financial Metrics

On Monday, Fidelity D&D Bancorp’s shares traded up by $0.04, reaching $44.00. A total of 6,211 shares exchanged hands during the trading session, slightly below the average volume of 7,053 shares. Over the past year, the stock has fluctuated between a low of $37.00 and a high of $50.00.

Financially, the company reported a current ratio of 0.82 and a quick ratio also at 0.82. Its debt-to-equity ratio is notably low at 0.03. Additionally, Fidelity D&D Bancorp has a market capitalization of approximately $253.88 million, a price-to-earnings (P/E) ratio of 9.76, and a beta of 0.95, suggesting stable stock performance relative to the market.

In its latest earnings report on October 22, 2023, the financial services provider announced earnings per share of $1.27 for the quarter, with total revenue reported at $23.53 million. The company’s net margin was 19.03%, and it achieved a return on equity of 12.10%.

Insider Transactions and Institutional Interest

In recent developments, Chairman Brian J. Cali acquired 1,951 shares of Fidelity D&D Bancorp on November 10, 2023, at an average price of $44.50 per share. The total transaction amounted to approximately $86,819.50, increasing his total ownership to 417,771 shares, valued at nearly $18.59 million. This purchase was disclosed in a filing with the U.S. Securities and Exchange Commission (SEC).

Similarly, CEO Daniel J. Santaniello purchased 1,000 shares on the same day for a total of $44,500, raising his ownership to 60,411 shares, valued at around $2.69 million. This transaction indicated a 1.68% increase in his holdings.

Currently, corporate insiders own approximately 21.00% of Fidelity D&D Bancorp shares, reflecting a strong confidence in the company’s future prospects.

Institutional investors have also shown interest, with Siena Capital Partners GP LLC acquiring a new position in the third quarter, valued at about $39,000. Other notable transactions include BNP Paribas Financial Markets increasing its holdings by 148.9% during the same period, now owning 1,185 shares worth $52,000.

Overall, institutional ownership now stands at 20.05% of the company’s stock, indicating a solid backing from larger investors.

Fidelity D&D Bancorp, based in Melville, New York, operates as a bank holding company for Fidelity Deposit & Discount Bank. The bank offers a range of deposit and lending products tailored for individuals, small businesses, and commercial clients throughout Long Island’s Nassau and Suffolk counties.