Alpha Wealth Funds LLC Has $2.46 Million Position in FS KKR Capital Corp. $FSK

Key Points

• Alpha Wealth Funds LLC boosted its stake in FS KKR Capital (NYSE:FSK) by 196.9% in Q4 to 166,364 shares worth $2.46 million, making FSK its sixth-largest holding (about 1.5% of the portfolio).
• Multiple analysts have cut targets and ratings on FSK—MarketBeat shows a consensus rating of Reduce with an average target of $12.50 after downgrades from RBC, B. Riley, Truist and JPMorgan.
• Insider Daniel Pietrzak bought 5,000 shares at $11.25, increasing his stake to 64,800 shares, while the company reported a Q4 EPS miss ($0.52 vs. $0.55) and paid a small special dividend.

Alpha Wealth Funds LLC raised its stake in FS KKR Capital Corp. (NYSE:FSK - Free Report) by 196.9% in the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 166,364 shares of the company's stock after purchasing an additional 110,332 shares during the quarter. FS KKR Capital makes up about 1.5% of Alpha Wealth Funds LLC's portfolio, making the stock its 6th biggest holding. Alpha Wealth Funds LLC's holdings in FS KKR Capital were worth $2,464,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also recently bought and sold shares of FSK. Aries Wealth Management raised its holdings in shares of FS KKR Capital by 3.1% in the 3rd quarter. Aries Wealth Management now owns 23,565 shares of the company's stock valued at $352,000 after purchasing an additional 700 shares during the period. Bison Wealth LLC raised its holdings in shares of FS KKR Capital by 3.4% in the 4th quarter. Bison Wealth LLC now owns 21,935 shares of the company's stock valued at $476,000 after purchasing an additional 720 shares during the period. Kathmere Capital Management LLC raised its holdings in shares of FS KKR Capital by 2.5% in the 4th quarter. Kathmere Capital Management LLC now owns 37,305 shares of the company's stock valued at $552,000 after purchasing an additional 900 shares during the period. Delta Investment Management LLC raised its holdings in shares of FS KKR Capital by 4.6% in the 4th quarter. Delta Investment Management LLC now owns 24,086 shares of the company's stock valued at $357,000 after purchasing an additional 1,049 shares during the period. Finally, Cahaba Wealth Management Inc. raised its holdings in shares of FS KKR Capital by 6.4% in the 4th quarter. Cahaba Wealth Management Inc. now owns 18,254 shares of the company's stock valued at $270,000 after purchasing an additional 1,093 shares during the period. 36.26% of the stock is currently owned by institutional investors.

Insider Activity

In other FS KKR Capital news, insider Daniel Pietrzak bought 5,000 shares of the firm's stock in a transaction on Friday, February 27th. The shares were purchased at an average price of $11.25 per share, for a total transaction of $56,250.00. Following the transaction, the insider directly owned 64,800 shares in the company, valued at approximately $729,000. This trade represents a 8.36% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.25% of the stock is currently owned by insiders.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on FSK shares. Royal Bank Of Canada dropped their target price on shares of FS KKR Capital from $15.00 to $13.00 and set a "sector perform" rating on the stock in a report on Monday, April 6th. B. Riley Financial decreased their price target on shares of FS KKR Capital from $17.50 to $11.00 and set a "neutral" rating on the stock in a research note on Tuesday, March 3rd. Zacks Research lowered shares of FS KKR Capital from a "hold" rating to a "strong sell" rating in a research note on Monday, March 2nd. Truist Financial decreased their price target on shares of FS KKR Capital from $17.00 to $11.00 and set a "hold" rating on the stock in a research note on Wednesday, March 4th. Finally, JPMorgan Chase & Co. decreased their price target on shares of FS KKR Capital from $13.00 to $9.50 and set a "neutral" rating on the stock in a research note on Friday, March 13th. Seven investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, FS KKR Capital currently has a consensus rating of "Reduce" and an average target price of $12.50.

FS KKR Capital Stock Performance

Shares of NYSE:FSK opened at $11.63 on Tuesday. The company's 50 day moving average price is $10.76 and its two-hundred day moving average price is $13.35. FS KKR Capital Corp. has a 12-month low of $9.72 and a 12-month high of $22.68. The firm has a market cap of $3.26 billion, a PE ratio of 387.50 and a beta of 0.85. The company has a quick ratio of 3.05, a current ratio of 3.05 and a debt-to-equity ratio of 1.31.

FS KKR Capital (NYSE:FSK - Get Free Report) last announced its earnings results on Wednesday, February 25th. The company reported $0.52 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.55 by ($0.03). FS KKR Capital had a return on equity of 5.21% and a net margin of 0.72%.The business had revenue of $348.00 million for the quarter, compared to analyst estimates of $361.59 million. During the same quarter in the previous year, the company earned $0.66 EPS. Equities research analysts predict that FS KKR Capital Corp. will post 1.7 earnings per share for the current year.

FS KKR Capital Announces Dividend

The firm also recently announced a special dividend, which was paid on Thursday, April 2nd. Shareholders of record on Wednesday, March 18th were given a dividend of $0.03 per share. This represents a dividend yield of 118.0%. The ex-dividend date was Wednesday, March 18th. FS KKR Capital's dividend payout ratio is presently 6,000.00%.

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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