FS KKR Capital Corp. $FSK Shares Sold by HighTower Advisors LLC

Key Points

• HighTower Advisors LLC cut its FS KKR Capital stake by 40.3% in the fourth quarter, selling 93,432 shares and leaving it with 138,389 shares worth about $2.05 million.
• FS KKR Capital recently missed quarterly earnings expectations, reporting $0.41 EPS versus the $0.44 estimate and revenue of $304 million versus $316.81 million expected. The company’s revenue also fell 24% year over year.
• The company declared a quarterly dividend of $0.42 per share, implying an annualized yield of 15.3%, while analysts remain cautious with an average rating of “Reduce” and a $10.58 price target.

HighTower Advisors LLC lessened its holdings in shares of FS KKR Capital Corp. (NYSE:FSK - Free Report) by 40.3% in the fourth quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 138,389 shares of the company's stock after selling 93,432 shares during the quarter. HighTower Advisors LLC's holdings in FS KKR Capital were worth $2,050,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also recently bought and sold shares of FSK. Bison Wealth LLC increased its position in FS KKR Capital by 3.4% during the 4th quarter. Bison Wealth LLC now owns 21,935 shares of the company's stock worth $476,000 after purchasing an additional 720 shares in the last quarter. Goldman Sachs Group Inc. increased its position in FS KKR Capital by 13.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 267,890 shares of the company's stock worth $5,612,000 after purchasing an additional 32,258 shares in the last quarter. Empowered Funds LLC increased its position in FS KKR Capital by 139.9% during the 1st quarter. Empowered Funds LLC now owns 26,744 shares of the company's stock worth $560,000 after purchasing an additional 15,596 shares in the last quarter. Marshall Wace LLP acquired a new stake in FS KKR Capital during the 2nd quarter worth approximately $1,806,000. Finally, Nebula Research & Development LLC increased its position in FS KKR Capital by 83.1% during the 2nd quarter. Nebula Research & Development LLC now owns 20,236 shares of the company's stock worth $420,000 after purchasing an additional 9,183 shares in the last quarter. Institutional investors and hedge funds own 36.26% of the company's stock.

More FS KKR Capital News

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

• Positive Sentiment: FS KKR Capital is reportedly planning to sell at least $400 million of junk bonds for high-yield investors, which could help it raise capital and support liquidity. FS KKR plans to sell at least $400M of junk bonds for high yield - report
• Neutral Sentiment: One article argues FS KKR Capital may be a buy as activist investor Saba enters ahead of a possible 13D filing, suggesting potential defense measures or a catalyst from shareholder activism. FS KKR Capital Finally A Buy On Saba Pre-13D Entry, Early Defense Measures
• Negative Sentiment: Multiple law firms are promoting class-action lawsuits and reminding investors of lead-plaintiff deadlines, alleging FS KKR Capital made misleading portfolio valuation disclosures that hurt shareholders. Rosen Encourages FS KKR Capital Investors to Secure Counsel
• Negative Sentiment: The lawsuits and deadline reminders from Bronstein, Gewirtz & Grossman, Faruqi & Faruqi, Berger Montague, and Schall reinforce litigation risk around the stock and may keep investors cautious. Bronstein, Gewirtz & Grossman class action alert

Analyst Ratings Changes

FSK has been the subject of a number of research analyst reports. Wall Street Zen downgraded shares of FS KKR Capital from a "hold" rating to a "sell" rating in a research report on Saturday, February 28th. Zacks Research raised shares of FS KKR Capital from a "strong sell" rating to a "hold" rating in a research report on Monday, May 4th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $11.00 price objective on shares of FS KKR Capital in a research report on Tuesday, May 12th. Keefe, Bruyette & Woods lowered their price objective 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. Finally, B. Riley Financial lowered 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. Seven analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, FS KKR Capital has an average rating of "Reduce" and an average price target of $10.58.

FS KKR Capital Stock Up 0.7%

FSK stock opened at $10.95 on Tuesday. FS KKR Capital Corp. has a twelve month low of $9.72 and a twelve month high of $22.68. 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 market capitalization of $3.07 billion, a P/E ratio of -5.56 and a beta of 0.85. The firm has a 50 day simple moving average of $10.68 and a 200-day simple moving average of $12.75.

FS KKR Capital (NYSE:FSK - Get Free Report) last released 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 company had revenue of $304.00 million for the quarter, compared to analyst estimates of $316.81 million. During the same period in the previous year, the business posted $0.65 EPS. The firm's quarterly revenue was down 24.0% compared to the same quarter last year. On average, equities research analysts predict that FS KKR Capital Corp. will post 1.66 earnings per share for the current fiscal year.

FS KKR Capital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Stockholders of record on Wednesday, June 17th will be given a dividend of $0.42 per share. The ex-dividend date of this dividend is Wednesday, June 17th. This represents a $1.68 dividend on an annualized basis and a dividend yield of 15.3%. FS KKR Capital's dividend payout ratio (DPR) is presently -85.28%.

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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