FS KKR Capital (NYSE:FSK) Shares Gap Down – Here’s Why

FS KKR Capital Corp. (NYSE:FSK)’s share price gapped down prior to trading on Wednesday . The stock had previously closed at $10.78, but opened at $10.31. FS KKR Capital shares last traded at $10.4610, with a volume of 368,395 shares traded.

Analyst Ratings Changes

Several research analysts have recently commented on the company. B. Riley Financial lowered their price target on FS KKR Capital from $17.50 to $11.00 and set a “neutral” rating for the company in a research report on Tuesday, March 3rd. Weiss Ratings reiterated a “sell (d+)” rating on shares of FS KKR Capital in a report on Tuesday, June 2nd. Zacks Research upgraded FS KKR Capital from a “strong sell” rating to a “hold” rating in a report on Monday, May 4th. Keefe, Bruyette & Woods decreased their target price on FS KKR Capital from $15.00 to $11.00 and set a “market perform” rating for the company in a report on Thursday, April 16th. Finally, Wall Street Zen lowered FS KKR Capital from a “hold” rating to a “sell” rating in a report on Saturday, February 28th. Seven analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, FS KKR Capital has an average rating of “Reduce” and an average price target of $10.58.

FS KKR Capital Stock Performance

The company has a debt-to-equity ratio of 1.38, a current ratio of 2.00 and a quick ratio of 2.00. The company has a market capitalization of $2.91 billion, a price-to-earnings ratio of -5.27 and a beta of 0.83. The stock has a 50 day simple moving average of $10.83 and a two-hundred day simple moving average of $12.39.

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

FS KKR Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Wednesday, June 17th will be paid a $0.42 dividend. The ex-dividend date is Wednesday, June 17th. This represents a $1.68 dividend on an annualized basis and a yield of 16.2%. FS KKR Capital’s dividend payout ratio (DPR) is currently -85.28%.

Institutional Trading of FS KKR Capital

A number of hedge funds and other institutional investors have recently bought and sold shares of FSK. Northwestern Mutual Wealth Management Co. increased its position in shares of FS KKR Capital by 55,074.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 7,741,004 shares of the company’s stock worth $114,644,000 after purchasing an additional 7,726,974 shares in the last quarter. Saba Capital Management L.P. acquired a new stake in shares of FS KKR Capital during the first quarter worth about $35,729,000. Oak Hill Advisors LP acquired a new stake in shares of FS KKR Capital during the fourth quarter worth about $38,659,000. Rivernorth Capital Management LLC increased its position in shares of FS KKR Capital by 580.7% during the first quarter. Rivernorth Capital Management LLC now owns 2,097,170 shares of the company’s stock worth $21,349,000 after purchasing an additional 1,789,090 shares in the last quarter. Finally, Balyasny Asset Management L.P. acquired a new stake in shares of FS KKR Capital during the third quarter worth about $21,917,000. 36.26% of the stock is currently owned by institutional investors and hedge funds.

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.