Gateway Wealth Partners LLC Sells 709,409 Shares of FS KKR Capital Corp. $FSK

Key Points

• Gateway Wealth Partners cut its FS KKR Capital stake by 95.5% in the first quarter, selling 709,409 shares and retaining 33,130 shares valued at approximately $337,000. Institutional investors own 36.26% of the company.
• Analysts remain cautious, with a consensus rating of “Reduce” and an average price target of $10.58. Recent firms lowered their targets, while Zacks downgraded the stock to “strong sell.”
• FS KKR Capital reported weaker-than-expected quarterly results, including $0.41 in EPS versus $0.44 expected and a 24% year-over-year revenue decline. The company declared a $0.42 quarterly dividend, equating to a 15.9% annualized yield at the reported share price.

Gateway Wealth Partners LLC lessened its position in FS KKR Capital Corp. (NYSE:FSK - Free Report) by 95.5% during the first quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 33,130 shares of the company's stock after selling 709,409 shares during the quarter. Gateway Wealth Partners LLC's holdings in FS KKR Capital were worth $337,000 as of its most recent filing with the SEC.

Several other institutional investors have also recently bought and sold shares of the company. Thurston Springer Miller Herd & Titak Inc. bought a new position in shares of FS KKR Capital during the 4th quarter worth approximately $26,000. Jessup Wealth Management Inc acquired a new stake in shares of FS KKR Capital in the fourth quarter valued at approximately $26,000. FNY Investment Advisers LLC bought a new stake in shares of FS KKR Capital in the fourth quarter worth $28,000. Halbert Hargrove Global Advisors LLC bought a new stake in shares of FS KKR Capital in the fourth quarter worth $31,000. Finally, Basepoint Wealth LLC acquired a new position in FS KKR Capital during the fourth quarter worth $31,000. Institutional investors own 36.26% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on FSK. 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. Wells Fargo & Company cut their price target on shares of FS KKR Capital from $11.00 to $10.00 and set an "equal weight" rating on the stock in a research report on Tuesday, May 12th. Weiss Ratings restated a "sell (d+)" rating on shares of FS KKR Capital in a research note on Tuesday, June 2nd. Royal Bank Of Canada restated a "sector perform" rating and issued a $11.00 price objective on shares of FS KKR Capital in a report on Tuesday, May 12th. Finally, Zacks Research downgraded FS KKR Capital from a "hold" rating to a "strong sell" rating in a research report on Monday, July 13th. Six research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus price target of $10.58.

FS KKR Capital Trading Up 0.0%

NYSE FSK opened at $10.56 on Friday. FS KKR Capital Corp. has a 12 month low of $9.72 and a 12 month high of $21.34. 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 stock has a 50 day moving average of $10.68 and a 200-day moving average of $11.37. The company has a market cap of $2.96 billion, a PE ratio of -5.36 and a beta of 0.82.

FS KKR Capital (NYSE:FSK - Get Free Report) last issued its 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 firm 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 firm posted $0.65 earnings per share. FS KKR Capital's quarterly revenue was down 24.0% on a year-over-year basis. On average, equities research analysts anticipate that FS KKR Capital Corp. will post 1.64 EPS for the current fiscal year.

FS KKR Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Wednesday, June 17th were given a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 15.9%. The ex-dividend date of this dividend was Wednesday, June 17th. FS KKR Capital's dividend payout ratio (DPR) is -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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