FS KKR Capital Corp. (NYSE:FSK) Given Average Recommendation of “Reduce” by Brokerages

FS KKR Capital Corp. (NYSE:FSK) has been assigned a consensus rating of “Reduce” from the eight brokerages that are presently covering the firm, MarketBeat reports. Two research analysts have rated the stock with a sell recommendation and six have issued a hold recommendation on the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $10.5833.

FSK has been the topic of several recent research reports. Royal Bank Of Canada restated a “sector perform” rating and issued a $11.00 price target on shares of FS KKR Capital in a research report on Tuesday, May 12th. Wall Street Zen raised FS KKR Capital from a “sell” rating to a “hold” rating in a report on Saturday, August 1st. Wells Fargo & Company cut their price target on 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. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of FS KKR Capital in a report on Tuesday, June 2nd. Finally, Zacks Research lowered shares of FS KKR Capital from a “hold” rating to a “strong sell” rating in a research report on Monday, July 13th.

FS KKR Capital Trading Up 7.6%

NYSE:FSK opened at $11.87 on Friday. The company has a market capitalization of $3.33 billion, a PE ratio of -6.03 and a beta of 0.83. FS KKR Capital has a 52-week low of $9.72 and a 52-week high of $19.24. The stock’s 50 day moving average price is $10.72 and its 200 day moving average price is $11.26. 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 (NYSE:FSK) last announced its earnings results on Thursday, August 6th. The company reported $0.43 EPS for the quarter, beating analysts’ consensus estimates of $0.42 by $0.01. 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 $290.00 million during the quarter, compared to analysts’ expectations of $286.75 million. During the same period in the prior year, the company earned ($0.75) earnings per share. On average, research analysts anticipate that FS KKR Capital will post 1.64 EPS for the current year.

FS KKR Capital Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 2nd. Stockholders of record on Wednesday, September 16th will be paid a $0.44 dividend. This is a boost from FS KKR Capital’s previous quarterly dividend of $0.42. The ex-dividend date is Wednesday, September 16th. This represents a $1.76 annualized dividend and a dividend yield of 14.8%. FS KKR Capital’s dividend payout ratio (DPR) is -85.28%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in FSK. Northwestern Mutual Wealth Management Co. increased its stake in shares of FS KKR Capital by 55,074.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 7,741,004 shares of the company’s stock valued at $114,644,000 after acquiring an additional 7,726,974 shares during the last quarter. Saba Capital Management L.P. purchased a new stake in FS KKR Capital in the first quarter valued at approximately $35,729,000. Oak Hill Advisors LP acquired a new position in FS KKR Capital during the fourth quarter worth approximately $38,659,000. Cura Wealth Advisors LLC acquired a new position in FS KKR Capital during the second quarter worth approximately $22,391,000. Finally, Rivernorth Capital Management LLC increased its position in 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 during the last quarter. 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.