Independent Financial Group LLC Buys Shares of 1,153,934 FS KKR Capital Corp. $FSK

Key Points

• Independent Financial Group LLC bought a new stake in FS KKR Capital Corp. during the first quarter, purchasing 1,153,934 shares valued at about $11.7 million.
• Several other institutions also adjusted holdings, and 36.26% of the company is now owned by hedge funds and other institutional investors.
• Analysts remain cautious on the stock, with a consensus rating of "Reduce" and a target price of $10.58, while FS KKR Capital also recently reported earnings of $0.41 per share, below estimates, despite paying a quarterly dividend of $0.42 per share.

Independent Financial Group LLC purchased a new stake in shares of FS KKR Capital Corp. (NYSE:FSK - Free Report) during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor purchased 1,153,934 shares of the company's stock, valued at approximately $11,747,000. Independent Financial Group LLC owned 0.41% of FS KKR Capital as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Bison Wealth LLC grew its stake in FS KKR Capital by 3.4% during the fourth quarter. Bison Wealth LLC now owns 21,935 shares of the company's stock valued at $476,000 after acquiring an additional 720 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings 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 acquiring an additional 32,258 shares during the period. Empowered Funds LLC lifted its stake in FS KKR Capital by 139.9% in 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 purchased a new stake in FS KKR Capital in the 2nd quarter worth approximately $1,806,000. Finally, Nebula Research & Development LLC boosted its holdings in FS KKR Capital by 83.1% in the 2nd quarter. Nebula Research & Development LLC now owns 20,236 shares of the company's stock valued at $420,000 after purchasing an additional 9,183 shares during the period. 36.26% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the stock. Royal Bank Of Canada restated a "sector perform" rating and set a $11.00 price target on shares of FS KKR Capital in a research report on Tuesday, May 12th. Zacks Research downgraded FS KKR Capital from a "hold" rating to a "strong sell" rating in a research report on Monday. Weiss Ratings reissued a "sell (d+)" rating on shares of FS KKR Capital in a research note on Tuesday, June 2nd. Wells Fargo & Company reduced their target price 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. Finally, Keefe, Bruyette & Woods decreased their target price on FS KKR Capital from $15.00 to $11.00 and set a "market perform" rating on the stock in a research note on Thursday, April 16th. Six 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, the company currently has a consensus rating of "Reduce" and a consensus target price of $10.58.

FS KKR Capital Stock Up 2.0%

FSK opened at $11.11 on Friday. The stock has a market cap of $3.11 billion, a PE ratio of -5.64 and a beta of 0.82. 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. The business's fifty day simple moving average is $10.68 and its 200 day simple moving average is $11.65.

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 negative net margin of 38.65% and a positive return on equity of 4.34%. The firm had revenue of $304.00 million for the quarter, compared to analysts' expectations of $316.81 million. During the same quarter in the previous year, the business earned $0.65 EPS. The company's revenue for the quarter was down 24.0% on a year-over-year basis. As a group, research analysts expect that FS KKR Capital Corp. will post 1.64 earnings per share 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. Investors of record on Wednesday, June 17th were issued a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a dividend yield of 15.1%. The ex-dividend date of this dividend was Wednesday, June 17th. FS KKR Capital's dividend payout ratio (DPR) is currently -85.28%.

FS KKR Capital 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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