Andina Capital Management LLC Has $5.02 Million Stock Position in FS KKR Capital Corp. $FSK

Key Points

• Andina Capital Management increased its FS KKR Capital stake by 48.1% in the fourth quarter, buying 110,109 additional shares. The fund now holds 339,084 shares worth about $5.02 million, making FSK its 8th largest holding.
• Analyst sentiment remains cautious, with multiple firms cutting price targets and rating the stock mostly Hold/Neutral. The consensus view is now a “Reduce” rating with an average price target of $10.58.
• FS KKR Capital recently posted weaker-than-expected results and also declared a $0.42 quarterly dividend, implying a high annualized yield of 15.5%. The stock is also facing investor attention over a pending securities class action lawsuit and related deadline notices.

Andina Capital Management LLC raised its holdings in shares of FS KKR Capital Corp. (NYSE:FSK - Free Report) by 48.1% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 339,084 shares of the company's stock after purchasing an additional 110,109 shares during the quarter. FS KKR Capital accounts for approximately 3.0% of Andina Capital Management LLC's investment portfolio, making the stock its 8th largest holding. Andina Capital Management LLC owned approximately 0.12% of FS KKR Capital worth $5,022,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also made changes to their positions in the business. Thurston Springer Miller Herd & Titak Inc. purchased a new position in shares of FS KKR Capital during the fourth quarter valued at $26,000. Jessup Wealth Management Inc purchased a new position in shares of FS KKR Capital during the fourth quarter valued at $26,000. FNY Investment Advisers LLC purchased a new position in shares of FS KKR Capital during the fourth quarter valued at $28,000. Halbert Hargrove Global Advisors LLC purchased a new position in shares of FS KKR Capital during the fourth quarter valued at $31,000. Finally, Basepoint Wealth LLC purchased a new position in shares of FS KKR Capital during the fourth quarter valued at $31,000. 36.26% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

FSK has been the topic of a number of recent research reports. Truist Financial dropped their price objective on FS KKR Capital from $17.00 to $11.00 and set a "hold" rating on the stock in a research report on Wednesday, March 4th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $11.00 price objective on shares of FS KKR Capital in a research report on Tuesday, May 12th. Wells Fargo & Company dropped their price objective on FS KKR Capital from $11.00 to $10.00 and set an "equal weight" rating on the stock in a research report on Tuesday, May 12th. JPMorgan Chase & Co. lowered their price target on FS KKR Capital from $13.00 to $9.50 and set a "neutral" rating for the company in a report on Friday, March 13th. Finally, B. Riley Financial lowered their price target on FS KKR Capital from $17.50 to $11.00 and set a "neutral" rating for the company in a report on Tuesday, March 3rd. Seven research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, FS KKR Capital presently has a consensus rating of "Reduce" and a consensus price target of $10.58.

FS KKR Capital News Summary

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

• Negative Sentiment: Investors are being reminded of a pending class action alleging securities-law violations at FS KKR Capital, which can weigh on sentiment and raise concerns about legal costs, management distraction, and potential settlement risk. Levi & Korsinsky Deadline Alert
• Negative Sentiment: One notice says claims focus on alleged misrepresentations about non-accrual portfolio management that allegedly led to about $880 million in fair value losses across two corrective disclosures, increasing the perceived severity of the case. Levi & Korsinsky Deadline Alert
• Neutral Sentiment: Several firms are simply advertising the approaching July 3 or July 6 lead-plaintiff deadlines, which adds headline noise but does not provide new operational news about the business. Faruqi & Faruqi Shareholder Notice

FS KKR Capital Stock Down 1.5%

Shares of FSK stock opened at $10.84 on Friday. The stock has a 50 day moving average of $10.80 and a 200 day moving average of $12.49. The company has a current ratio of 2.00, a quick ratio of 2.00 and a debt-to-equity ratio of 1.38. The stock has a market cap of $3.04 billion, a P/E ratio of -5.50 and a beta of 0.83. FS KKR Capital Corp. has a twelve month low of $9.72 and a twelve month high of $22.68.

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

FS KKR Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, July 2nd. Stockholders of record on Wednesday, June 17th will be given a $0.42 dividend. The ex-dividend date is Wednesday, June 17th. This represents a $1.68 dividend on an annualized basis and a dividend yield of 15.5%. FS KKR Capital's payout ratio is -91.37%.

FS KKR Capital Company Profile

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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