FS KKR Capital Corp. (FSK) - What Are Brokerages Thinking About This Stock?

Key Points

• Analyst sentiment is cautious: Eight brokerages give FS KKR Capital an average “Reduce” rating, including two sells and six holds. The average 12-month price target is $11.43.
• FSK reported quarterly EPS of $0.43, slightly above the $0.42 consensus estimate, while revenue of $290 million also exceeded expectations.
• The company announced a $0.20-per-share special dividend for shareholders of record December 16, with payment scheduled for December 24. Institutional investors and hedge funds own 36.26% of the stock.

FS KKR Capital Corp. (NYSE:FSK - Get Free Report) has been given an average recommendation of "Reduce" by the eight brokerages that are currently covering the stock, MarketBeat Ratings reports. Two analysts have rated the stock with a sell rating and six have issued a hold rating on the company. The average 1-year target price among analysts that have covered the stock in the last year is $11.43.

A number of analysts have recently commented on FSK shares. Zacks Research raised FS KKR Capital from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 11th. Truist Financial upped their price objective on FS KKR Capital from $11.00 to $12.00 and gave the company a "hold" rating in a research note on Friday, August 7th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $13.00 price objective (up from $11.00) on shares of FS KKR Capital in a research note on Wednesday, August 12th. JPMorgan Chase & Co. raised their price objective on shares of FS KKR Capital from $9.50 to $11.00 and gave the company a "neutral" rating in a report on Wednesday, August 19th. Finally, Wall Street Zen upgraded shares of FS KKR Capital from a "sell" rating to a "hold" rating in a report on Saturday, August 1st.

FS KKR Capital Stock Up 1.8%

Shares of FSK opened at $10.73 on Friday. The company has a debt-to-equity ratio of 1.26, a quick ratio of 2.28 and a current ratio of 2.28. FS KKR Capital has a 52 week low of $9.72 and a 52 week high of $16.31. The stock has a market capitalization of $2.97 billion, a price-to-earnings ratio of -7.95 and a beta of 0.86. The stock has a fifty day moving average of $11.68 and a 200-day moving average of $11.07.

FS KKR Capital (NYSE:FSK - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.43 earnings per share for the quarter, topping analysts' consensus estimates of $0.42 by $0.01. FS KKR Capital had a positive return on equity of 9.70% and a negative net margin of 28.52%. The business had revenue of $290.00 million for the quarter, compared to analyst estimates of $286.75 million. During the same quarter in the previous year, the company posted ($0.75) EPS. As a group, sell-side analysts anticipate that FS KKR Capital will post 1.64 earnings per share for the current fiscal year.

FS KKR Capital Dividend Announcement

The firm also recently announced a special dividend, which will be paid on Thursday, December 24th. Shareholders of record on Wednesday, December 16th will be issued a dividend of $0.20 per share. This represents a yield of 1,633.0%. The ex-dividend date of this dividend is Wednesday, December 16th. FS KKR Capital's payout ratio is presently -130.37%.

Hedge Funds Weigh In On FS KKR Capital

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Van ECK Associates Corp lifted its holdings in shares of FS KKR Capital by 13.4% during the second quarter. Van ECK Associates Corp now owns 5,382,748 shares of the company's stock worth $56,519,000 after purchasing an additional 636,889 shares during the period. Saba Capital Management L.P. bought a new stake in shares of FS KKR Capital in the first quarter worth $35,729,000. Legal & General Group Plc acquired a new stake in FS KKR Capital in the second quarter valued at $28,742,000. Silver Point Capital L.P. acquired a new stake in FS KKR Capital in the second quarter valued at $28,602,000. Finally, Cura Wealth Advisors LLC acquired a new stake in FS KKR Capital in the second quarter valued at $22,391,000. 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 business development company that provides financing to privately owned middle-market companies. The company primarily invests in senior secured loans, including first-lien and second-lien debt, and may also make select equity investments. Its portfolio companies operate across a range of industries and are generally located in the United States.

FSK seeks to generate income and long-term capital appreciation by partnering with companies that require financing for acquisitions, recapitalizations, growth initiatives, refinancing and other corporate purposes.

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