National Securities restated their neutral rating on shares of FS Investment (NYSE:FSIC) in a research report report published on Monday, November 13th. The firm currently has a $10.00 target price on the financial services provider’s stock.
“• FSIC posted adjusted NII/share of $0.21 for 3Q17, beating our estimate of $0.19 and matching the quarterly dividend. Interest income came in stronger than we had anticipated, although we expect this was buoyed by accelerated accretion of OID (original issue discount) pertaining to prepayment activity.
• NAV/share improved Q/Q to $9.43 from $9.30 largely as a result of unrealized appreciation of $54.2 million on investments during the quarter, partially offset by $18.2 million of realized losses. Asset quality remains sound at FSIC with non-accruals at cost decreasing to $18.1 million or 0.5% of the portfolio from $25.3 million or 0.7% Q/Q. Paw Luxco II came off non-accrual but Brock Holdings III and Global A&T Electronics were both added to non-accrual status during the quarter.
• The portfolio at cost decreased modestly during the quarter to $3.77 billion from $3.82 billion in 2Q17 as sales and repayments of $225.5 million outpaced the $182.4 million of originations during the quarter. We think that FSIC has the origination platform and capacity to increase the portfolio steadily from 4Q17 – 4Q18 although we note that net portfolio growth is likely more contingent upon prepayment activity slowing down than originations picking up meaningfully.
• We are revising our 2017 adjusted NII/share estimate to $0.85 from $0.82 and our 2018 NII/share estimate to $0.87 from $0.85.,” National Securities’ analyst commented.
A number of other analysts have also recently commented on FSIC. BidaskClub cut shares of FS Investment from a hold rating to a sell rating in a report on Monday, July 17th. Zacks Investment Research raised shares of FS Investment from a sell rating to a hold rating in a report on Tuesday, July 18th. Keefe, Bruyette & Woods restated a hold rating and set a $10.00 target price on shares of FS Investment in a research report on Tuesday, July 25th. Finally, ValuEngine lowered shares of FS Investment from a buy rating to a hold rating in a research report on Friday, September 1st. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and one has given a buy rating to the company. The company currently has an average rating of Hold and a consensus target price of $9.56.
FS Investment (NYSE:FSIC) last released its quarterly earnings data on Thursday, November 9th. The financial services provider reported $0.21 earnings per share for the quarter, beating the consensus estimate of $0.19 by $0.02. FS Investment had a net margin of 52.49% and a return on equity of 8.97%. The firm had revenue of $103.69 million during the quarter, compared to analysts’ expectations of $97.03 million. research analysts forecast that FS Investment will post 0.8 EPS for the current year.
The company also recently announced a quarterly dividend, which will be paid on Wednesday, January 3rd. Stockholders of record on Wednesday, December 20th will be paid a $0.19 dividend. This represents a $0.76 annualized dividend and a dividend yield of 9.38%. The ex-dividend date is Tuesday, December 19th. FS Investment’s dividend payout ratio is currently 98.89%.
Several institutional investors and hedge funds have recently made changes to their positions in the company. Commonwealth Equity Services Inc raised its stake in shares of FS Investment by 1.8% in the third quarter. Commonwealth Equity Services Inc now owns 12,467,400 shares of the financial services provider’s stock valued at $105,349,000 after acquiring an additional 220,296 shares during the period. Muzinich & Co. Inc. increased its stake in FS Investment by 2.0% in the 2nd quarter. Muzinich & Co. Inc. now owns 9,670,172 shares of the financial services provider’s stock worth $88,482,000 after buying an additional 193,652 shares during the period. Ameriprise Financial Inc. increased its stake in FS Investment by 0.8% in the 3rd quarter. Ameriprise Financial Inc. now owns 2,418,770 shares of the financial services provider’s stock worth $20,196,000 after buying an additional 19,363 shares during the period. Private Advisor Group LLC increased its stake in FS Investment by 6.7% in the 3rd quarter. Private Advisor Group LLC now owns 2,218,069 shares of the financial services provider’s stock worth $19,186,000 after buying an additional 139,059 shares during the period. Finally, Advisor Group Inc. increased its stake in FS Investment by 16.7% in the 3rd quarter. Advisor Group Inc. now owns 1,743,026 shares of the financial services provider’s stock worth $14,728,000 after buying an additional 249,179 shares during the period. 32.46% of the stock is currently owned by institutional investors and hedge funds.
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About FS Investment
FS Investment Corporation is an externally managed, non-diversified, closed-end management investment company. The Company’s investment objectives are to generate current income and long-term capital appreciation. Its portfolio consists primarily of investments in senior secured loans and second lien secured loans of the private United States middle market companies and subordinated loans of the private United States companies.
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