Andina Capital Management LLC Boosts Stake in FS KKR Capital Corp. $FSK

Key Points

• Andina Capital Management LLC increased its FS KKR Capital stake by 66.1% in the first quarter, bringing its holdings to 563,305 shares worth about $5.73 million. The position now makes up roughly 5.1% of its portfolio.
• FS KKR Capital missed earnings expectations in its latest quarterly report, posting EPS of $0.41 versus the $0.44 estimate and revenue of $304 million versus $316.81 million expected. Revenue also declined 24% year over year.
• The company announced a quarterly dividend of $0.42 per share, payable July 2, which annualizes to $1.68 per share and a very high 16.4% yield. Analysts remain cautious overall, with a consensus rating of “Reduce” and a consensus price target of $10.58.

Andina Capital Management LLC lifted its stake in shares of FS KKR Capital Corp. (NYSE:FSK - Free Report) by 66.1% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 563,305 shares of the company's stock after buying an additional 224,221 shares during the period. FS KKR Capital comprises approximately 5.1% of Andina Capital Management LLC's investment portfolio, making the stock its 2nd biggest position. Andina Capital Management LLC owned approximately 0.20% of FS KKR Capital worth $5,734,000 as of its most recent filing with the SEC.

A number of other large investors also recently modified their holdings of the company. Thurston Springer Miller Herd & Titak Inc. acquired a new position in FS KKR Capital in the 4th quarter worth about $26,000. Jessup Wealth Management Inc acquired a new position in shares of FS KKR Capital in the fourth quarter valued at approximately $26,000. FNY Investment Advisers LLC acquired a new position in shares of FS KKR Capital in the fourth quarter valued at approximately $28,000. Halbert Hargrove Global Advisors LLC bought a new position in FS KKR Capital in the 4th quarter valued at approximately $31,000. Finally, Basepoint Wealth LLC bought a new position in FS KKR Capital in the 4th quarter valued at approximately $31,000. 36.26% of the stock is currently owned by institutional investors.

FS KKR Capital Price Performance

FSK stock opened at $10.23 on Wednesday. The company has a quick ratio of 2.00, a current ratio of 2.00 and a debt-to-equity ratio of 1.38. The firm has a market cap of $2.87 billion, a price-to-earnings ratio of -5.19 and a beta of 0.83. The company's fifty day simple moving average is $10.82 and its 200 day simple moving average is $12.19. FS KKR Capital Corp. has a 12-month low of $9.72 and a 12-month high of $22.68.

FS KKR Capital (NYSE:FSK - Get Free Report) last issued its quarterly earnings results on Monday, May 11th. The company reported $0.41 earnings per share for the quarter, missing analysts' consensus estimates of $0.44 by ($0.03). FS KKR Capital had a positive return on equity of 4.34% and a negative net margin of 38.65%.The business had revenue of $304.00 million for the quarter, compared to analyst estimates of $316.81 million. During the same quarter in the previous year, the business posted $0.65 earnings per share. The business's revenue was down 24.0% on a year-over-year basis. On average, analysts expect that FS KKR Capital Corp. will post 1.66 earnings per share for the current year.

FS KKR Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Wednesday, June 17th will be paid a dividend of $0.42 per share. The ex-dividend date of this dividend is Wednesday, June 17th. This represents a $1.68 annualized dividend and a yield of 16.4%. FS KKR Capital's dividend payout ratio (DPR) is currently -85.28%.

Key Stories Impacting FS KKR Capital

Here are the key news stories impacting FS KKR Capital this week:

• Neutral Sentiment: Multiple law firms issued class-action reminders and lead-plaintiff deadline notices for FSK shareholders, increasing the stock’s litigation overhang. Article title
• Neutral Sentiment: Rosen Law Firm and others highlighted July lead-plaintiff deadlines, keeping the lawsuit in focus and potentially discouraging sentiment until the case progresses. Article title
• Neutral Sentiment: Earlier earnings results missed analyst estimates, with revenue down year over year, leaving the stock vulnerable to added downside when legal headlines surface. Article title

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the stock. Keefe, Bruyette & Woods decreased their price target on shares of FS KKR Capital from $15.00 to $11.00 and set a "market perform" rating for the company in a research report on Thursday, April 16th. Wall Street Zen lowered shares of FS KKR Capital from a "hold" rating to a "sell" rating in a report on Saturday, February 28th. JPMorgan Chase & Co. reduced their price objective 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. Zacks Research upgraded FS KKR Capital from a "strong sell" rating to a "hold" rating in a report on Monday, May 4th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of FS KKR Capital in a research report on Tuesday, June 2nd. Seven analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus price target of $10.58.

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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