Bank of America Corp DE Purchases 286,541 Shares of FS KKR Capital Corp. $FSK

Key Points

• Bank of America increased its FS KKR Capital stake by 221% in the first quarter, purchasing 286,541 additional shares for a total position of 416,171 shares valued at approximately $4.24 million.
• FS KKR Capital reported quarterly EPS of $0.43, slightly above analyst expectations, while revenue reached $290 million. The company raised its quarterly dividend to $0.44, implying a 14.3% annualized yield.
• Analyst sentiment remains cautious: seven analysts rate the stock Hold and one rates it Sell, resulting in a consensus “Reduce” rating and an average price target of $11.43, below the reported $12.28 share price.

Bank of America Corp DE increased its position in shares of FS KKR Capital Corp. (NYSE:FSK - Free Report) by 221.0% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 416,171 shares of the company's stock after acquiring an additional 286,541 shares during the period. Bank of America Corp DE owned about 0.15% of FS KKR Capital worth $4,237,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also added to or reduced their stakes in FSK. Jessup Wealth Management Inc bought a new position in shares of FS KKR Capital in the 4th quarter valued at $26,000. Basepoint Wealth LLC acquired a new position in shares of FS KKR Capital during the 4th quarter worth $31,000. Smartleaf Asset Management LLC lifted its position in shares of FS KKR Capital by 201.2% during 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 during the last quarter. Knott David M Jr bought a new stake in shares of FS KKR Capital during the 4th quarter worth $43,000. Finally, Kingdom Financial Group LLC. acquired a new stake in FS KKR Capital in the fourth quarter valued at about $50,000. 36.26% of the stock is owned by institutional investors.

FS KKR Capital Stock Performance

NYSE:FSK opened at $12.28 on Friday. The company has a debt-to-equity ratio of 1.26, a quick ratio of 2.28 and a current ratio of 2.28. FS KKR Capital Corp. has a fifty-two week low of $9.72 and a fifty-two week high of $18.25. The company has a 50 day simple moving average of $11.17 and a two-hundred day simple moving average of $11.08. The company has a market capitalization of $3.39 billion, a PE ratio of -9.10 and a beta of 0.83.

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 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 the consensus estimate of $286.75 million. During the same quarter in the previous year, the company earned ($0.75) EPS. Research analysts anticipate that FS KKR Capital Corp. will post 1.64 earnings per share for the current year.

FS KKR Capital Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 2nd. Investors of record on Wednesday, September 16th will be issued a $0.44 dividend. The ex-dividend date is Wednesday, September 16th. This is a positive change from FS KKR Capital's previous quarterly dividend of $0.42. This represents a $1.76 annualized dividend and a yield of 14.3%. FS KKR Capital's dividend payout ratio (DPR) is presently -124.44%.

Wall Street Analyst Weigh In

FSK has been the topic of a number of recent analyst reports. Wall Street Zen upgraded FS KKR Capital from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. Royal Bank Of Canada reissued a "sector perform" rating and issued a $13.00 target price (up from $11.00) on shares of FS KKR Capital in a report on Wednesday, August 12th. Weiss Ratings restated a "sell (d+)" rating on shares of FS KKR Capital in a research note on Tuesday, June 2nd. Zacks Research raised shares of FS KKR Capital from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 11th. Finally, Truist Financial upped their price objective on shares of FS KKR Capital from $11.00 to $12.00 and gave the stock a "hold" rating in a research report on Friday, August 7th. 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, the company presently has a consensus rating of "Reduce" and an average price target of $11.43.

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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