Connor Clark & Lunn Investment Management Ltd. Takes $5 Million Position in FS KKR Capital Corp. $FSK

Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of FS KKR Capital Corp. (NYSE:FSK) during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 476,366 shares of the company’s stock, valued at approximately $5,002,000. Connor Clark & Lunn Investment Management Ltd. owned approximately 0.17% of FS KKR Capital at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. boosted its position in shares of FS KKR Capital by 55,074.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 7,741,004 shares of the company’s stock worth $114,644,000 after buying an additional 7,726,974 shares during the period. Saba Capital Management L.P. purchased a new stake in shares of FS KKR Capital during the 1st quarter valued at about $35,729,000. Oak Hill Advisors LP acquired a new position in FS KKR Capital during the 4th quarter worth approximately $38,659,000. Cura Wealth Advisors LLC purchased a new position in FS KKR Capital in the 2nd quarter worth approximately $22,391,000. Finally, Rivernorth Capital Management LLC grew its position in FS KKR Capital by 580.7% in the first 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. 36.26% of the stock is currently owned by institutional investors and hedge funds.

FS KKR Capital Stock Performance

Shares of FSK opened at $12.24 on Friday. The stock has a market capitalization of $3.38 billion, a PE ratio of -9.07 and a beta of 0.83. The business’s fifty day moving average price is $11.13 and its 200 day moving average price is $11.08. The company has a debt-to-equity ratio of 1.26, a current ratio of 2.28 and a quick ratio of 2.28. FS KKR Capital Corp. has a 12-month low of $9.72 and a 12-month high of $18.25.

FS KKR Capital (NYSE:FSK) last released its earnings results on Thursday, August 6th. The company reported $0.43 earnings per share for the quarter, beating the consensus estimate of $0.42 by $0.01. The firm had revenue of $290.00 million during the quarter, compared to analyst estimates of $286.75 million. FS KKR Capital had a negative net margin of 28.52% and a positive return on equity of 9.70%. During the same quarter in the previous year, the firm earned ($0.75) earnings per share. Equities research analysts forecast that FS KKR Capital Corp. will post 1.64 EPS for the current year.

FS KKR Capital Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 2nd. Investors of record on Wednesday, September 16th will be given a dividend of $0.44 per share. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 14.4%. This is a boost from FS KKR Capital’s previous quarterly dividend of $0.42. FS KKR Capital’s payout ratio is currently -124.44%.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. Capital One Financial set a $12.00 price objective on shares of FS KKR Capital in a research note on Friday, August 7th. Truist Financial raised their price target on shares of FS KKR Capital from $11.00 to $12.00 and gave the company a “hold” rating in a report on Friday, August 7th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of FS KKR Capital in a research note on Tuesday, June 2nd. Wall Street Zen upgraded shares of FS KKR Capital from a “sell” rating to a “hold” rating in a report on Saturday, August 1st. Finally, Wells Fargo & Company decreased their price objective on shares of FS KKR Capital from $11.00 to $10.00 and set an “equal weight” rating for the company in a research report on Tuesday, May 12th. Seven investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $11.43.

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.