FS KKR Capital Corp. (NYSE:FSK) Receives Average Recommendation of “Reduce” from Analysts

Shares of FS KKR Capital Corp. (NYSE:FSK) have received a consensus recommendation of “Reduce” from the eight brokerages that are presently covering the stock, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation and seven have assigned a hold recommendation to the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $10.5833.

A number of analysts have recently commented on FSK shares. JPMorgan Chase & Co. cut their target price on shares of FS KKR Capital from $13.00 to $9.50 and set a “neutral” rating for the company in a research note on Friday, March 13th. Truist Financial cut their target price on shares of FS KKR Capital from $17.00 to $11.00 and set a “hold” rating for the company in a research note on Wednesday, March 4th. Zacks Research raised shares of FS KKR Capital from a “strong sell” rating to a “hold” rating in a research note on Monday, May 4th. Wells Fargo & Company cut their target price on shares of FS KKR Capital from $11.00 to $10.00 and set an “equal weight” rating for the company in a research note on Tuesday, May 12th. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $11.00 price objective on shares of FS KKR Capital in a research note on Tuesday, May 12th.

Insider Transactions at FS KKR Capital

In other FS KKR Capital news, insider Daniel Pietrzak acquired 5,000 shares of the company’s stock in a transaction that occurred on Friday, February 27th. The stock was bought at an average price of $11.25 per share, with a total value of $56,250.00. Following the purchase, the insider owned 64,800 shares in the company, valued at approximately $729,000. The trade was a 8.36% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.18% of the company’s stock.

Institutional Trading of FS KKR Capital

Several large investors have recently bought and sold shares of the business. Bank of America Corp DE grew its stake in FS KKR Capital by 221.0% during the 1st quarter. Bank of America Corp DE now owns 416,171 shares of the company’s stock valued at $4,237,000 after acquiring an additional 286,541 shares in the last quarter. Rivernorth Capital Management LLC grew its stake in FS KKR Capital by 580.7% during the 1st quarter. Rivernorth Capital Management LLC now owns 2,097,170 shares of the company’s stock valued at $21,349,000 after acquiring an additional 1,789,090 shares in the last quarter. Infrastructure Capital Advisors LLC purchased a new stake in FS KKR Capital during the 1st quarter valued at about $102,000. Saba Capital Management L.P. purchased a new stake in FS KKR Capital during the 1st quarter valued at about $35,729,000. Finally, SummitTX Capital L.P. purchased a new stake in FS KKR Capital during the 1st quarter valued at about $1,650,000. Hedge funds and other institutional investors own 36.26% of the company’s stock.

FS KKR Capital Stock Down 1.3%

FSK stock opened at $10.79 on Tuesday. The stock has a market capitalization of $3.02 billion, a P/E ratio of -5.47 and a beta of 0.85. The firm has a 50-day simple moving average of $10.60 and a 200-day simple moving average of $12.95. The company has a quick ratio of 2.00, a current ratio of 2.00 and a debt-to-equity ratio of 1.38. FS KKR Capital has a 52 week low of $9.72 and a 52 week high of $22.68.

FS KKR Capital (NYSE:FSK) last released its earnings results on Monday, May 11th. The company reported $0.41 EPS for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.03). The company had revenue of $304.00 million for the quarter, compared to analysts’ expectations of $316.81 million. FS KKR Capital had a positive return on equity of 4.34% and a negative net margin of 38.65%.The firm’s revenue for the quarter was down 24.0% on a year-over-year basis. During the same period in the prior year, the firm earned $0.65 EPS. Equities analysts forecast that FS KKR Capital will post 1.66 earnings per share for the current fiscal year.

FS KKR Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Wednesday, June 17th will be paid a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 15.6%. The ex-dividend date of this dividend is Wednesday, June 17th. FS KKR Capital’s dividend payout ratio is currently -91.37%.

Trending Headlines about FS KKR Capital

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

• Negative Sentiment: Several law firms, including Rosen, Faruqi & Faruqi, Bronstein Gewirtz & Grossman, the Schall Law Firm, and others, announced or reminded investors about a securities class action against FS KKR Capital over alleged misstatements related to portfolio valuations and investor harm. Article Title
• Negative Sentiment: The lawsuits increase the risk of legal costs, management distraction, and possible settlement expenses for FS KKR Capital, which can weigh on sentiment toward the stock. Article Title
• Neutral Sentiment: One commentary article highlighted FSK as a high-yield BDC and noted interest from income investors, but it also referenced two recent dividend cuts, leaving the outlook mixed. Article Title

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.