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

Key Points

• Analysts maintain a cautious outlook: Eight brokerages give FS KKR Capital an average “Reduce” rating, consisting of one sell and seven hold ratings. The average 12-month price target is $11.43, slightly above the stock’s $11.26 opening price.
• Quarterly results exceeded expectations: FS KKR Capital reported earnings of $0.43 per share versus the $0.42 consensus estimate, while revenue reached $290 million compared with expectations of $286.75 million.
• The quarterly dividend increased to $0.44 per share, equivalent to $1.76 annually and a 15.6% yield; institutional investors own approximately 36.26% of the company.

Shares of FS KKR Capital Corp. (NYSE:FSK - Get Free Report) have been given an average rating of "Reduce" by the eight research firms that are covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell rating and seven have given a hold rating to the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is $11.4286.

A number of analysts have commented on FSK shares. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of FS KKR Capital in a research report on Friday, August 28th. Capital One Financial set a $12.00 price objective on FS KKR Capital in a research note on Friday, August 7th. JPMorgan Chase & Co. lifted their target price on FS KKR Capital from $9.50 to $11.00 and gave the stock a "neutral" rating in a report on Wednesday, August 19th. Truist Financial upped their target price on FS KKR Capital from $11.00 to $12.00 and gave the company a "hold" rating in a research report on Friday, August 7th. Finally, Zacks Research upgraded shares of FS KKR Capital from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 11th.

FS KKR Capital Trading Down 0.2%

NYSE FSK opened at $11.26 on Monday. FS KKR Capital has a 12-month low of $9.72 and a 12-month high of $16.31. The company has a fifty day simple moving average of $11.66 and a two-hundred day simple moving average of $10.99. The company has a current ratio of 2.28, a quick ratio of 2.28 and a debt-to-equity ratio of 1.26. The stock has a market cap of $3.11 billion, a P/E ratio of -8.34 and a beta of 0.83.

FS KKR Capital (NYSE:FSK - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.43 earnings per share for the quarter, beating analysts' consensus estimates 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 firm had revenue of $290.00 million for the quarter, compared to analyst estimates of $286.75 million. During the same period in the previous year, the company earned ($0.75) earnings per share. On average, analysts forecast that FS KKR Capital will post 1.64 earnings per share 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. Stockholders of record on Wednesday, September 16th will be issued a $0.44 dividend. This is an increase from FS KKR Capital's previous quarterly dividend of $0.42. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $1.76 annualized dividend and a dividend yield of 15.6%. FS KKR Capital's payout ratio is currently -130.37%.

Institutional Trading of FS KKR Capital

A number of hedge funds and other institutional investors have recently made changes to their positions in FSK. Concorde Asset Management LLC lifted its position in FS KKR Capital by 12.3% during the second quarter. Concorde Asset Management LLC now owns 70,634 shares of the company's stock valued at $771,000 after purchasing an additional 7,714 shares during the period. RFG Advisory LLC grew its position in FS KKR Capital by 3.1% during the 2nd quarter. RFG Advisory LLC now owns 110,640 shares of the company's stock worth $1,162,000 after purchasing an additional 3,283 shares during the period. NewEdge Advisors LLC grew its position in FS KKR Capital by 29.9% during the 2nd quarter. NewEdge Advisors LLC now owns 181,798 shares of the company's stock worth $1,909,000 after purchasing an additional 41,820 shares during the period. Allworth Financial LP raised its stake in shares of FS KKR Capital by 8.9% during the 2nd quarter. Allworth Financial LP now owns 16,700 shares of the company's stock valued at $175,000 after buying an additional 1,369 shares during the last quarter. Finally, HighTower Advisors LLC raised its stake in shares of FS KKR Capital by 0.7% during the 2nd quarter. HighTower Advisors LLC now owns 362,213 shares of the company's stock valued at $3,803,000 after buying an additional 2,429 shares during the last quarter. Institutional investors and hedge funds own 36.26% of the company's stock.

FS KKR Capital Company Profile

FS KKR Capital Corp. NYSE: FSK is a business development company that provides financing to private middle-market companies, primarily in the United States. The company seeks to support businesses across a range of industries by investing in senior secured loans, subordinated debt and, to a lesser extent, equity securities.

FSK's portfolio is generally focused on established companies with annual revenues and earnings that may require capital for acquisitions, recapitalizations, growth initiatives, refinancings and other corporate purposes.

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