Diversify Wealth Management LLC Has $2.14 Million Holdings in FS KKR Capital Corp. $FSK

Key Points

• Diversify Wealth Management LLC increased its stake in FS KKR Capital by 95% in the first quarter, ending with 200,812 shares valued at about $2.14 million.
• Analysts remain cautious on the stock: the consensus rating is “Reduce” with an average price target of $10.58, while several firms recently trimmed targets or maintained hold/sell views.
• FS KKR Capital reported first-quarter earnings of $0.41 per share, missing estimates, and recently paid a quarterly dividend of $0.42 per share, equal to a 15.5% yield.

Diversify Wealth Management LLC lifted its position in shares of FS KKR Capital Corp. (NYSE:FSK - Free Report) by 95.0% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 200,812 shares of the company's stock after acquiring an additional 97,808 shares during the quarter. Diversify Wealth Management LLC owned approximately 0.07% of FS KKR Capital worth $2,139,000 at the end of the most recent reporting period.

Several other hedge funds also recently modified their holdings of FSK. Titan Investment Management LLC bought a new stake in FS KKR Capital during the 4th quarter worth approximately $1,863,000. UBS Group AG raised its stake in shares of FS KKR Capital by 15.3% during the fourth quarter. UBS Group AG now owns 3,806,076 shares of the company's stock valued at $56,368,000 after acquiring an additional 505,982 shares during the last quarter. Legacy Capital Group California Inc. raised its stake in shares of FS KKR Capital by 48.8% during the fourth quarter. Legacy Capital Group California Inc. now owns 313,615 shares of the company's stock valued at $4,645,000 after acquiring an additional 102,864 shares during the last quarter. Legal & General Group Plc lifted its holdings in shares of FS KKR Capital by 15.3% during the fourth quarter. Legal & General Group Plc now owns 2,296,070 shares of the company's stock worth $33,993,000 after purchasing an additional 304,556 shares during the period. Finally, Marble Wealth LLC acquired a new position in shares of FS KKR Capital during the fourth quarter worth $1,567,000. Institutional investors and hedge funds own 36.26% of the company's stock.

Analysts Set New Price Targets

A number of analysts recently weighed in on FSK shares. Zacks Research upgraded FS KKR Capital from a "strong sell" rating to a "hold" rating in a report on Monday, May 4th. Keefe, Bruyette & Woods cut their target price on FS KKR Capital from $15.00 to $11.00 and set a "market perform" rating on the stock in a report on Thursday, April 16th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of FS KKR Capital in a report on Tuesday, June 2nd. 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 report on Tuesday, May 12th. Finally, Wells Fargo & Company lowered their price objective on FS KKR Capital from $11.00 to $10.00 and set an "equal weight" rating for the company in a research report on Tuesday, May 12th. Seven equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Reduce" and an average price target of $10.58.

FS KKR Capital Trading Up 0.1%

NYSE:FSK opened at $10.81 on Tuesday. FS KKR Capital Corp. has a 52 week low of $9.72 and a 52 week high of $22.68. The company has a debt-to-equity ratio of 1.38, a quick ratio of 2.00 and a current ratio of 2.00. The firm's fifty day moving average is $10.71 and its 200-day moving average is $11.72. The firm has a market cap of $3.03 billion, a P/E ratio of -5.49 and a beta of 0.82.

FS KKR Capital (NYSE:FSK - Get Free Report) last issued its quarterly earnings results on Monday, May 11th. The company reported $0.41 earnings per share for the quarter, missing analysts' consensus estimates of $0.44 by ($0.03). FS KKR Capital had a positive return on equity of 4.34% and a negative net margin of 38.65%.The business had revenue of $304.00 million for the quarter, compared to analyst estimates of $316.81 million. During the same quarter in the previous year, the business posted $0.65 earnings per share. The business's revenue was down 24.0% on a year-over-year basis. Equities analysts expect that FS KKR Capital Corp. will post 1.64 earnings per share for the current year.

FS KKR Capital Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Investors of record on Wednesday, June 17th were given a dividend of $0.42 per share. The ex-dividend date was Wednesday, June 17th. This represents a $1.68 annualized dividend and a dividend yield of 15.5%. FS KKR Capital's dividend payout ratio is presently -85.28%.

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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