FS KKR Capital Corp. $FSK Stock Holdings Lowered by Cambridge Investment Research Advisors Inc.

Key Points

• Cambridge Investment Research Advisors cut its FS KKR Capital stake by 14.6% in the fourth quarter, selling 272,355 shares and leaving it with 1,586,949 shares valued at about $23.5 million.
• FS KKR Capital reported weaker-than-expected quarterly results, posting EPS of $0.41 versus estimates of $0.44 and revenue of $304 million versus expectations of $316.81 million. Revenue also fell 24% year over year.
• The company declared a quarterly dividend of $0.42, or $1.68 annualized, which implies a high yield of 15.6%. Analysts remain cautious, with a consensus rating of “Reduce” and an average price target of $10.58.

Cambridge Investment Research Advisors Inc. lowered its position in shares of FS KKR Capital Corp. (NYSE:FSK - Free Report) by 14.6% in the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 1,586,949 shares of the company's stock after selling 272,355 shares during the period. Cambridge Investment Research Advisors Inc.'s holdings in FS KKR Capital were worth $23,503,000 as of its most recent filing with the SEC.

Several other institutional investors have also modified their holdings of FSK. Bison Wealth LLC grew its position in shares of FS KKR Capital by 3.4% during the fourth quarter. Bison Wealth LLC now owns 21,935 shares of the company's stock worth $476,000 after acquiring an additional 720 shares during the last quarter. Goldman Sachs Group Inc. grew its position in shares of FS KKR Capital by 13.7% during the first quarter. Goldman Sachs Group Inc. now owns 267,890 shares of the company's stock worth $5,612,000 after acquiring an additional 32,258 shares during the last quarter. Empowered Funds LLC grew its position in shares of FS KKR Capital by 139.9% during the first quarter. Empowered Funds LLC now owns 26,744 shares of the company's stock worth $560,000 after acquiring an additional 15,596 shares during the last quarter. Marshall Wace LLP bought a new position in shares of FS KKR Capital during the second quarter worth about $1,806,000. Finally, Nebula Research & Development LLC grew its position in shares of FS KKR Capital by 83.1% during the second quarter. Nebula Research & Development LLC now owns 20,236 shares of the company's stock worth $420,000 after acquiring an additional 9,183 shares during the last quarter. Institutional investors own 36.26% of the company's stock.

Insiders Place Their Bets

In other FS KKR Capital news, insider Daniel Pietrzak purchased 5,000 shares of the business's stock in a transaction on Friday, February 27th. The stock was bought at an average cost of $11.25 per share, with a total value of $56,250.00. Following the acquisition, the insider owned 64,800 shares of the company's stock, valued at $729,000. The trade was a 8.36% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 0.25% of the company's stock.

FS KKR Capital Stock Performance

Shares of FSK opened at $10.76 on Tuesday. The firm has a 50-day moving average price of $10.59 and a 200 day moving average price of $13.06. The firm has a market capitalization of $3.01 billion, a PE ratio of -5.46 and a beta of 0.85. The company has a quick ratio of 2.00, a current ratio of 2.00 and a debt-to-equity ratio of 1.38. FS KKR Capital Corp. has a 52-week low of $9.72 and a 52-week high of $22.68.

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 negative net margin of 38.65% and a positive return on equity of 4.34%. The business had revenue of $304.00 million during the quarter, compared to analyst estimates of $316.81 million. During the same period in the previous year, the company posted $0.65 earnings per share. FS KKR Capital's revenue was down 24.0% compared to the same quarter last year. On average, sell-side analysts anticipate that FS KKR Capital Corp. will post 1.68 earnings per share for the current fiscal year.

FS KKR Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Wednesday, June 17th will be issued a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a yield of 15.6%. The ex-dividend date of this dividend is Wednesday, June 17th. FS KKR Capital's dividend payout ratio is presently -91.37%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. Zacks Research upgraded 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 reiterated a "sector perform" rating and issued a $11.00 target price on shares of FS KKR Capital in a research report on Tuesday, May 12th. Truist Financial decreased their target price on shares of FS KKR Capital from $17.00 to $11.00 and set a "hold" rating for the company in a research report on Wednesday, March 4th. 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. Finally, Keefe, Bruyette & Woods decreased their target price 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 equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average price target 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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