BlackRock Inc. Makes New Investment in FS KKR Capital Corp. $FSK

Key Points

• BlackRock acquired 1.06 million shares of FS KKR Capital during the second quarter, valued at approximately $11.1 million and representing about 0.38% of the company.
• Analysts remain cautious: seven rate FSK as Hold and one as Sell, resulting in an average “Reduce” rating and an average price target of $11.43.
• FS KKR Capital raised its quarterly dividend to $0.44 per share, or $1.76 annually, implying a 14.1% yield; the company also narrowly exceeded quarterly earnings and revenue estimates.

BlackRock Inc. acquired a new stake in shares of FS KKR Capital Corp. (NYSE:FSK - Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 1,058,574 shares of the company's stock, valued at approximately $11,115,000. BlackRock Inc. owned approximately 0.38% of FS KKR Capital at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Jessup Wealth Management Inc acquired a new stake in shares of FS KKR Capital during the 4th quarter worth about $26,000. Basepoint Wealth LLC acquired a new stake in FS KKR Capital during the 4th quarter valued at $31,000. Smartleaf Asset Management LLC raised its position in FS KKR Capital by 201.2% in the 4th quarter. Smartleaf Asset Management LLC now owns 2,678 shares of the company's stock valued at $40,000 after purchasing an additional 1,789 shares during the last quarter. Knott David M Jr acquired a new position in FS KKR Capital in the fourth quarter worth $43,000. Finally, Kingdom Financial Group LLC. acquired a new position in FS KKR Capital in the fourth quarter worth $50,000. 36.26% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research analysts recently issued reports on FSK shares. Truist Financial lifted their price target on FS KKR Capital from $11.00 to $12.00 and gave the company a "hold" rating in a report on Friday, August 7th. Royal Bank Of Canada reissued a "sector perform" rating and set a $13.00 price objective (up from $11.00) on shares of FS KKR Capital in a report on Wednesday, August 12th. Capital One Financial set a $12.00 target price on shares of FS KKR Capital in a research note on Friday, August 7th. Weiss Ratings reiterated a "sell (d+)" rating on shares of FS KKR Capital in a research report on Friday, August 28th. Finally, Wells Fargo & Company decreased their price target on shares of FS KKR Capital from $11.00 to $10.00 and set an "equal weight" rating on the stock in a research note on Tuesday, May 12th. Seven research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, FS KKR Capital has an average rating of "Reduce" and an average price target of $11.43.

FS KKR Capital Price Performance

NYSE:FSK opened at $12.46 on Friday. The firm has a market capitalization of $3.44 billion, a price-to-earnings ratio of -9.23 and a beta of 0.83. The stock's 50 day moving average price is $11.39 and its two-hundred day moving average price is $11.05. FS KKR Capital Corp. has a 12-month low of $9.72 and a 12-month high of $18.21. The company has a quick ratio of 2.28, a current ratio of 2.28 and a debt-to-equity ratio of 1.26.

FS KKR Capital (NYSE:FSK - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.43 earnings per share for the quarter, beating the consensus estimate of $0.42 by $0.01. The firm had revenue of $290.00 million for the quarter, compared to analysts' expectations of $286.75 million. FS KKR Capital had a negative net margin of 28.52% and a positive return on equity of 9.70%. During the same period in the prior year, the firm earned ($0.75) EPS. On average, 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 disclosed a quarterly dividend, which will be paid on Friday, October 2nd. Shareholders of record on Wednesday, September 16th will be given a dividend of $0.44 per share. This represents a $1.76 annualized dividend and a yield of 14.1%. The ex-dividend date is Wednesday, September 16th. This is a positive change from FS KKR Capital's previous quarterly dividend of $0.42. FS KKR Capital's dividend payout ratio (DPR) is -124.44%.

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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