Diversified Enterprises LLC Takes $4.71 Million Position in FS KKR Capital Corp. $FSK

Key Points

• Diversified Enterprises LLC acquired a new 318,098-share stake in FS KKR Capital (NYSE:FSK) in Q4, valued at about $4.71 million.
• FSK missed quarterly expectations with $0.52 EPS and revenue below estimates, prompting multiple price-target cuts and a MarketBeat consensus rating of "Reduce" with a $12.50 target.
• The company paid a special dividend of $0.03 per share (reported as a 118.0% yield), an insider purchased 5,000 shares at ~$11.25, and institutional investors own 36.26% of the stock.

Diversified Enterprises LLC acquired a new stake in FS KKR Capital Corp. (NYSE:FSK - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 318,098 shares of the company's stock, valued at approximately $4,711,000.

Other institutional investors have also modified their holdings of the company. Bulldog Investors LLP acquired a new position in shares of FS KKR Capital in the third quarter valued at approximately $3,600,000. Legacy Capital Group California Inc. raised its position in shares of FS KKR Capital by 48.8% in the fourth quarter. Legacy Capital Group California Inc. now owns 313,615 shares of the company's stock valued at $4,645,000 after buying an additional 102,864 shares during the last quarter. Alpine Global Management LLC acquired a new position in shares of FS KKR Capital in the third quarter valued at approximately $1,477,000. Corient Private Wealth LLC raised its position in shares of FS KKR Capital by 291.1% in the second quarter. Corient Private Wealth LLC now owns 48,324 shares of the company's stock valued at $1,003,000 after buying an additional 35,968 shares during the last quarter. Finally, Dynamic Technology Lab Private Ltd acquired a new position in shares of FS KKR Capital in the third quarter valued at approximately $1,135,000. Institutional investors and hedge funds own 36.26% of the company's stock.

FS KKR Capital Stock Performance

Shares of FSK stock opened at $10.58 on Friday. FS KKR Capital Corp. has a one year low of $9.72 and a one year high of $22.68. The company has a debt-to-equity ratio of 1.31, a quick ratio of 3.05 and a current ratio of 3.05. The company has a 50 day moving average price of $11.01 and a 200 day moving average price of $13.50. The firm has a market capitalization of $2.96 billion, a price-to-earnings ratio of 352.50 and a beta of 0.83.

FS KKR Capital (NYSE:FSK - Get Free Report) last issued its quarterly earnings results on Wednesday, February 25th. The company reported $0.52 EPS for the quarter, missing the consensus estimate of $0.55 by ($0.03). FS KKR Capital had a return on equity of 5.21% and a net margin of 0.72%.The company had revenue of $348.00 million for the quarter, compared to analyst estimates of $361.59 million. During the same period last year, the company posted $0.66 EPS. Sell-side analysts anticipate that FS KKR Capital Corp. will post 1.7 EPS for the current year.

FS KKR Capital Announces Dividend

The firm also recently disclosed a special dividend, which was paid on Thursday, April 2nd. Shareholders of record on Wednesday, March 18th were paid a dividend of $0.03 per share. This represents a yield of 118.0%. The ex-dividend date was Wednesday, March 18th. FS KKR Capital's payout ratio is currently 6,000.00%.

Insider Transactions at FS KKR Capital

In other FS KKR Capital news, insider Daniel Pietrzak acquired 5,000 shares of the firm's stock in a transaction on Friday, February 27th. The stock was bought at an average cost of $11.25 per share, for a total transaction of $56,250.00. Following the completion of the purchase, the insider directly owned 64,800 shares in the company, valued at $729,000. This represents a 8.36% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.18% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

FSK has been the subject of a number of analyst reports. B. Riley Financial cut their price objective on shares of FS KKR Capital from $17.50 to $11.00 and set a "neutral" rating for the company in a research report on Tuesday, March 3rd. Royal Bank Of Canada dropped their price target on shares of FS KKR Capital from $15.00 to $13.00 and set a "sector perform" rating for the company in a research report on Monday, April 6th. Wall Street Zen lowered shares of FS KKR Capital from a "hold" rating to a "sell" rating in a research report on Saturday, February 28th. Wells Fargo & Company dropped their price target on shares of FS KKR Capital from $15.00 to $11.00 and set an "equal weight" rating for the company in a research report on Friday, February 27th. Finally, Keefe, Bruyette & Woods dropped 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. Seven investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, FS KKR Capital currently has a consensus rating of "Reduce" and a consensus target price of $12.50.

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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