FS KKR Capital Corp. (NYSE:FSK) Given Consensus Recommendation of “Reduce” by Brokerages

FS KKR Capital Corp. (NYSE:FSK) has received a consensus rating of “Reduce” from the eight analysts that are presently covering the stock, MarketBeat Ratings reports. Two analysts have rated the stock with a sell recommendation and six have given a hold recommendation to the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $10.5833.

A number of analysts recently commented on the stock. Royal Bank Of Canada restated a “sector perform” rating and issued a $11.00 price objective on shares of FS KKR Capital in a research report on Tuesday, May 12th. Wells Fargo & Company reduced their target price on FS KKR Capital from $11.00 to $10.00 and set an “equal weight” rating on the stock in a report on Tuesday, May 12th. Zacks Research lowered FS KKR Capital from a “hold” rating to a “strong sell” rating in a research report on Monday. Weiss Ratings reissued a “sell (d+)” rating on shares of FS KKR Capital in a research note on Tuesday, June 2nd. Finally, Keefe, Bruyette & Woods dropped their target price on shares of FS KKR Capital from $15.00 to $11.00 and set a “market perform” rating on the stock in a report on Thursday, April 16th.

FS KKR Capital Stock Performance

Shares of NYSE:FSK opened at $10.78 on Wednesday. The company has a current ratio of 2.00, a quick ratio of 2.00 and a debt-to-equity ratio of 1.38. FS KKR Capital has a 1-year low of $9.72 and a 1-year high of $22.68. The stock has a market capitalization of $3.02 billion, a P/E ratio of -5.47 and a beta of 0.82. The business has a 50-day moving average price of $10.69 and a two-hundred day moving average price of $11.70.

FS KKR Capital (NYSE:FSK) last issued its earnings results on Monday, May 11th. The company reported $0.41 EPS for the quarter, missing the consensus estimate of $0.44 by ($0.03). The business had revenue of $304.00 million for the quarter, compared to the consensus estimate of $316.81 million. FS KKR Capital had a negative net margin of 38.65% and a positive return on equity of 4.34%. The business’s revenue was down 24.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.65 EPS. Equities analysts predict that FS KKR Capital will post 1.64 earnings per share for the current year.

FS KKR Capital Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Investors of record on Wednesday, June 17th were given a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a yield of 15.6%. The ex-dividend date of this dividend was Wednesday, June 17th. FS KKR Capital’s dividend payout ratio (DPR) is currently -85.28%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Thurston Springer Miller Herd & Titak Inc. bought a new stake in FS KKR Capital during the 4th quarter worth about $26,000. Jessup Wealth Management Inc bought a new stake in FS KKR Capital during the fourth quarter worth about $26,000. FNY Investment Advisers LLC acquired a new position in FS KKR Capital during the fourth quarter valued at approximately $28,000. Halbert Hargrove Global Advisors LLC acquired a new position in FS KKR Capital during the fourth quarter valued at approximately $31,000. Finally, Basepoint Wealth LLC bought a new position in FS KKR Capital in the fourth quarter valued at approximately $31,000. Institutional investors own 36.26% of the company’s stock.

FS KKR Capital Company Profile

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.