FS KKR Capital (NYSE:FSK) Stock Rating Lowered by Wall Street Zen

FS KKR Capital (NYSE:FSK) was downgraded by Wall Street Zen from a “hold” rating to a “sell” rating in a report released on Saturday.

Several other equities research analysts also recently weighed in on the stock. Zacks Research raised shares of FS KKR Capital from a “strong sell” rating to a “hold” rating in a report on Wednesday, December 10th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of FS KKR Capital in a research note on Thursday, January 22nd. Wells Fargo & Company decreased their price objective on shares of FS KKR Capital from $15.00 to $11.00 and set an “equal weight” rating for the company in a report on Friday. Keefe, Bruyette & Woods dropped their target price on FS KKR Capital from $18.50 to $18.00 and set a “market perform” rating on the stock in a report on Monday, November 10th. Finally, Royal Bank Of Canada cut their target price on FS KKR Capital from $17.00 to $15.00 and set a “sector perform” rating for the company in a research report on Friday. Eight analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $16.50.

FS KKR Capital Price Performance

Shares of FSK stock opened at $10.80 on Friday. FS KKR Capital has a 12-month low of $10.79 and a 12-month high of $23.84. The company has a debt-to-equity ratio of 1.31, a current ratio of 3.05 and a quick ratio of 3.05. The business has a 50 day simple moving average of $13.90 and a 200 day simple moving average of $15.21.

FS KKR Capital (NYSE:FSK) last announced its quarterly earnings results on Wednesday, February 25th. The company reported $0.52 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.55 by ($0.03). FS KKR Capital had a return on equity of 5.21% and a net margin of 0.72%.The business had revenue of $348.00 million for the quarter, compared to analyst estimates of $361.59 million. During the same quarter last year, the firm posted $0.66 EPS. Sell-side analysts anticipate that FS KKR Capital will post 2.89 earnings per share for the current year.

Hedge Funds Weigh In On FS KKR Capital

A number of hedge funds have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of FS KKR Capital by 55,074.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 7,741,004 shares of the company’s stock valued at $114,644,000 after purchasing an additional 7,726,974 shares during the last quarter. Commonwealth Equity Services LLC raised its holdings in FS KKR Capital by 0.7% during the 2nd quarter. Commonwealth Equity Services LLC now owns 4,313,907 shares of the company’s stock worth $89,514,000 after buying an additional 28,619 shares during the period. Van ECK Associates Corp lifted its stake in FS KKR Capital by 2.4% during the fourth quarter. Van ECK Associates Corp now owns 4,083,940 shares of the company’s stock valued at $60,484,000 after buying an additional 94,262 shares in the last quarter. UBS Group AG lifted its stake in FS KKR Capital by 15.3% during the fourth quarter. UBS Group AG now owns 3,806,076 shares of the company’s stock valued at $56,368,000 after buying an additional 505,982 shares in the last quarter. Finally, Oak Hill Advisors LP acquired a new position in shares of FS KKR Capital in the fourth quarter worth about $38,659,000. 36.26% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting FS KKR Capital

Here are the key news stories impacting FS KKR Capital this week:

• Positive Sentiment: Small special dividend announced (record March 18; $0.03 per share, payable April 2) — a one‑time cash distribution that provides a modest near‑term payout to holders.
• Neutral Sentiment: FS KKR posted Q4 2025 results and held an earnings call; management released the presentation and supplemental materials that give detail on portfolio performance and NAV drivers. These disclosures help investors assess credit quality and payout sustainability. Earnings Presentation
• Neutral Sentiment: Analysts and outlets ran focused metric reviews of the quarter (coverage on Q4 key metrics and model impacts). These notes outline where EPS and revenue missed and what to watch next (credit yields, prepayments, expense/costs). Zacks Analysis
• Negative Sentiment: Management cut the regular dividend by ~31%, a direct hit to income investors and a major reason for the stock decline — the market treats BDC payout cuts as a signal of weaker portfolio income or coverage pressure. Dividend Cut Article
• Negative Sentiment: RBC Capital reduced its price target (from $17 to $15) and cited dividend outlook concerns, placing a sector‑perform rating on the stock — analyst downgrades lower investor expectations and can accelerate selling pressure. RBC Coverage
• Negative Sentiment: Wells Fargo cut its price target from $15 to $11 and moved to an equal‑weight rating, signaling lower near‑term upside after the quarter — another anchor on sentiment. Wells Fargo Note
• Negative Sentiment: Broader credit‑market concerns: a Financial Times piece reported a jump in troubled loans at a KKR‑managed private credit fund — investors may fear spillover to FS KKR’s portfolio or tighter credit fundamentals for the manager’s strategies. FT Article

About FS KKR Capital

FS KKR Capital Corp (NYSE:FSK) is a closed-end, externally managed business development company that primarily invests in private middle-market U.S. companies. The firm seeks to generate current income and capital appreciation by structuring investments in floating-rate senior secured loans, unitranche financings, second lien debt and mezzanine instruments. As a business development company, FSK provides financing solutions designed to support growth initiatives, acquisitions, leveraged buyouts and recapitalizations for privately held enterprises.

Established in 2018 through a strategic partnership between FS Investment Corporation and KKR Credit Advisors, a division of global investment firm KKR & Co Inc, FSK combines the credit underwriting capabilities of KKR’s global platform with FS’s expertise in private credit markets.