Investors Purchase High Volume of Call Options on FS KKR Capital (NYSE:FSK)

FS KKR Capital Corp. (NYSE:FSK) was the target of some unusual options trading on Tuesday. Stock traders bought 54,538 call options on the company. This is an increase of 10,075% compared to the average daily volume of 536 call options.

Analysts Set New Price Targets

FSK has been the subject of a number of research analyst reports. Royal Bank of Canada raised their price objective on shares of FS KKR Capital from $20.00 to $21.00 and gave the stock a “sector perform” rating in a report on Monday, November 18th. Wells Fargo & Company reiterated an “equal weight” rating and issued a $21.00 price objective on shares of FS KKR Capital in a research note on Monday. Seven investment analysts have rated the stock with a hold rating and one has issued a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $20.19.

Hedge Funds Weigh In On FS KKR Capital

Several institutional investors have recently bought and sold shares of FSK. Summit Securities Group LLC bought a new stake in FS KKR Capital in the second quarter worth $30,000. Ridgewood Investments LLC bought a new position in FS KKR Capital in the 2nd quarter valued at $37,000. Rothschild Investment LLC bought a new stake in shares of FS KKR Capital during the second quarter worth $39,000. McIlrath & Eck LLC boosted its stake in shares of FS KKR Capital by 47.5% during the third quarter. McIlrath & Eck LLC now owns 2,096 shares of the company’s stock valued at $41,000 after purchasing an additional 675 shares during the period. Finally, Financial Gravity Asset Management Inc. grew its holdings in shares of FS KKR Capital by 198.7% in the second quarter. Financial Gravity Asset Management Inc. now owns 2,136 shares of the company’s stock worth $42,000 after purchasing an additional 1,421 shares during the last quarter. 36.26% of the stock is owned by hedge funds and other institutional investors.

FS KKR Capital Stock Up 0.0 %

Shares of FSK stock traded up $0.01 during midday trading on Tuesday, reaching $21.99. 2,607,055 shares of the stock were exchanged, compared to its average volume of 1,413,939. FS KKR Capital has a 1 year low of $18.31 and a 1 year high of $22.39. The firm has a market cap of $6.16 billion, a PE ratio of 11.69 and a beta of 1.25. The company’s 50 day moving average is $20.68 and its two-hundred day moving average is $20.20. The company has a current ratio of 2.96, a quick ratio of 2.96 and a debt-to-equity ratio of 1.21.

FS KKR Capital (NYSE:FSK) last issued its quarterly earnings results on Wednesday, November 6th. The company reported $0.74 EPS for the quarter, topping analysts’ consensus estimates of $0.70 by $0.04. The firm had revenue of $441.00 million for the quarter, compared to analysts’ expectations of $423.58 million. FS KKR Capital had a return on equity of 12.31% and a net margin of 29.98%. During the same period in the previous year, the firm posted $0.80 EPS. On average, equities research analysts predict that FS KKR Capital will post 2.89 EPS for the current year.

FS KKR Capital Increases Dividend

The company also recently announced a None dividend, which will be paid on Wednesday, December 18th. Investors of record on Wednesday, December 4th will be issued a $0.70 dividend. The ex-dividend date of this dividend is Wednesday, December 4th. This represents a yield of 12.7%. This is an increase from FS KKR Capital’s previous None dividend of $0.64. FS KKR Capital’s dividend payout ratio is currently 136.17%.

About FS KKR Capital

FS KKR Capital Corp. is a business development company specializing in investments in debt securities. It provides customized credit solutions to private middle market U.S. companies. It invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market U.S.