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

Key Points

• Analyst sentiment is cautious: Eight brokerages give FS KKR Capital an average “Reduce” rating, with seven holds and one sell. The average 12-month price target is $11.43, below the reported $12.16 opening price.
• Quarterly results exceeded expectations: FS KKR Capital reported adjusted EPS of $0.43 versus the $0.42 consensus estimate and revenue of $290 million, ahead of the $286.75 million forecast.
• The quarterly dividend increased: The company raised its dividend to $0.44 per share, or $1.76 annualized, representing an indicated yield of approximately 14.5%.

Shares of FS KKR Capital Corp. (NYSE:FSK - Get Free Report) have been given an average rating of "Reduce" by the eight ratings firms that are presently covering the stock, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation and seven have assigned a hold recommendation to the company. The average twelve-month price objective among analysts that have covered the stock in the last year is $11.4286.

A number of brokerages have recently issued reports on FSK. JPMorgan Chase & Co. increased their price target on shares of FS KKR Capital from $9.50 to $11.00 and gave the stock a "neutral" rating in a report on Wednesday, August 19th. Wells Fargo & Company decreased their target price on shares of FS KKR Capital from $11.00 to $10.00 and set an "equal weight" rating on the stock in a report on Tuesday, May 12th. Zacks Research raised shares of FS KKR Capital from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 11th. Wall Street Zen upgraded FS KKR Capital from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. Finally, Royal Bank Of Canada reissued a "sector perform" rating and set a $13.00 price objective (up from $11.00) on shares of FS KKR Capital in a research note on Wednesday, August 12th.

FS KKR Capital Trading Up 0.9%

NYSE FSK opened at $12.16 on Thursday. The company has a debt-to-equity ratio of 1.26, a current ratio of 2.28 and a quick ratio of 2.28. The stock has a market capitalization of $3.36 billion, a price-to-earnings ratio of -9.01 and a beta of 0.83. FS KKR Capital has a one year low of $9.72 and a one year high of $18.25. The business's fifty day moving average is $11.09 and its 200-day moving average is $11.08.

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

FS KKR Capital Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 2nd. Shareholders of record on Wednesday, September 16th will be paid a $0.44 dividend. The ex-dividend date is Wednesday, September 16th. This represents a $1.76 dividend on an annualized basis and a yield of 14.5%. This is an increase from FS KKR Capital's previous quarterly dividend of $0.42. FS KKR Capital's dividend payout ratio is currently -124.44%.

Institutional Trading of FS KKR Capital

A number of large investors have recently modified their holdings of FSK. Jessup Wealth Management Inc bought a new position in shares of FS KKR Capital in the fourth quarter worth approximately $26,000. Triumph Capital Management lifted its position in FS KKR Capital by 98.1% during the second quarter. Triumph Capital Management now owns 2,575 shares of the company's stock valued at $27,000 after purchasing an additional 1,275 shares during the last quarter. Harborfront Financial Group LLC bought a new stake in FS KKR Capital during the second quarter valued at approximately $30,000. Basepoint Wealth LLC bought a new stake in FS KKR Capital during the fourth quarter valued at approximately $31,000. Finally, Smartleaf Asset Management LLC grew its stake in FS KKR Capital by 201.2% in the 4th quarter. Smartleaf Asset Management LLC now owns 2,678 shares of the company's stock worth $40,000 after buying an additional 1,789 shares in the last quarter. Institutional investors own 36.26% of the company's stock.

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.

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