CastleKnight Management LP Lowers Holdings in FS KKR Capital Corp. $FSK

Key Points

• CastleKnight Management LP cut its FSK stake by 16.4% in the fourth quarter, selling 101,700 shares and ending with 519,100 shares worth about $7.69 million.
• FS KKR Capital reported weaker-than-expected results for its latest quarter, posting EPS of $0.41 versus $0.44 expected and revenue of $304 million versus $316.8 million expected, with revenue down 24% year over year.
• The stock is under pressure amid legal and analyst caution, with shares near their 52-week low, a $0.42 quarterly dividend yielding 16.5%, and a consensus analyst rating of “Reduce.”

CastleKnight Management LP decreased its holdings in FS KKR Capital Corp. (NYSE:FSK - Free Report) by 16.4% in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 519,100 shares of the company's stock after selling 101,700 shares during the quarter. CastleKnight Management LP's holdings in FS KKR Capital were worth $7,688,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Thurston Springer Miller Herd & Titak Inc. purchased a new position in FS KKR Capital in the fourth quarter worth approximately $26,000. Jessup Wealth Management Inc purchased a new position in FS KKR Capital in the fourth quarter worth approximately $26,000. FNY Investment Advisers LLC purchased a new position in FS KKR Capital in the fourth quarter worth approximately $28,000. Halbert Hargrove Global Advisors LLC purchased a new position in FS KKR Capital in the fourth quarter worth approximately $31,000. Finally, Basepoint Wealth LLC purchased a new position in FS KKR Capital in the fourth quarter worth approximately $31,000. Hedge funds and other institutional investors own 36.26% of the company's stock.

FS KKR Capital Trading Down 5.3%

Shares of FS KKR Capital stock opened at $10.21 on Thursday. 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 company has a fifty day simple moving average of $10.82 and a 200-day simple moving average of $12.35. The stock has a market cap of $2.86 billion, a price-to-earnings ratio of -5.18 and a beta of 0.83. 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 posted its earnings results on Monday, May 11th. The company reported $0.41 EPS for the quarter, missing analysts' consensus estimates of $0.44 by ($0.03). The company had revenue of $304.00 million during 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 company's quarterly revenue was down 24.0% on a year-over-year basis. During the same period last year, the business earned $0.65 earnings per share. On average, equities analysts forecast that FS KKR Capital Corp. will post 1.66 EPS for the current fiscal year.

FS KKR Capital Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Wednesday, June 17th will be given a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 16.5%. The ex-dividend date of this dividend is Wednesday, June 17th. FS KKR Capital's dividend payout ratio (DPR) is -91.37%.

FS KKR Capital News Roundup

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

• Neutral Sentiment: Several law firms, including Glancy Prongay Wolke & Rotter, Levi & Korsinsky, Bernstein Liebhard, Pomerantz, Faruqi & Faruqi, Rosen, Portnoy, and The Gross Law Firm, reminded investors about class-action deadlines and lead-plaintiff opportunities related to FS KKR Capital. Article title: FS KKR Capital Corp. (FSK) Shareholders Who Lost Money Have Opportunity to Lead Securities Fraud Lawsuit
• Neutral Sentiment: One notice cited alleged portfolio losses totaling $880 million across two corrective disclosures, which may increase attention on the lawsuit and deepen investor concern. Article title: FSK Shareholder Alert: Investors With Losses May Seek to Lead the Class Action in FS KKR CAPITAL CORP. Securities Lawsuit - Contact Levi & Korsinsky
• Negative Sentiment: The legal campaign around FS KKR Capital may keep the stock under pressure as investors reassess litigation risk ahead of July deadlines, especially with the shares already trading near their 52-week low. Article title: INVESTOR ALERT: Pomerantz Law Firm Reminds Investors with Losses on their Investment in FS KKR Capital Corp. of Class Action Lawsuit and Upcoming Deadlines – FSK

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. Weiss Ratings reiterated a "sell (d+)" rating on shares of FS KKR Capital in a research note on Tuesday, June 2nd. Truist Financial decreased their price target on shares of FS KKR Capital from $17.00 to $11.00 and set a "hold" rating for the company in a research note on Wednesday, March 4th. Zacks Research upgraded shares of FS KKR Capital from a "strong sell" rating to a "hold" rating in a research note on Monday, May 4th. JPMorgan Chase & Co. decreased their price target on shares of FS KKR Capital from $13.00 to $9.50 and set a "neutral" rating for the company in a research note on Friday, March 13th. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and issued a $11.00 price target on shares of FS KKR Capital in a research note on Tuesday, May 12th. Seven investment 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, the company presently has a consensus rating of "Reduce" and a consensus target price of $10.58.

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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