FS KKR Capital Corp. $FSK Shares Sold by Invesco Ltd.

Key Points

• Invesco Ltd. has reduced its stake in FS KKR Capital Corp. by 5.4%, selling 39,301 shares in the first quarter, resulting in ownership of approximately 693,162 shares valued at $14.52 million.
• FS KKR Capital announced a quarterly dividend increase from $0.64 to $0.70 per share, highlighting a dividend yield of 15.5% and a payout ratio of 328.21%.
• Recent analyst ratings have varied, with B. Riley assigning a "neutral" rating and a price target of $19.00, while Wall Street Zen has downgraded the stock to a "sell" rating, reflecting a consensus view of reduced confidence in the company's prospects.

Invesco Ltd. reduced its position in FS KKR Capital Corp. (NYSE:FSK - Free Report) by 5.4% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 693,162 shares of the company's stock after selling 39,301 shares during the period. Invesco Ltd. owned 0.25% of FS KKR Capital worth $14,522,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in FSK. Kingswood Wealth Advisors LLC lifted its holdings in shares of FS KKR Capital by 250.9% in the 1st quarter. Kingswood Wealth Advisors LLC now owns 788,025 shares of the company's stock valued at $16,831,000 after purchasing an additional 563,432 shares during the last quarter. Financial Gravity Asset Management Inc. purchased a new stake in shares of FS KKR Capital in the 1st quarter valued at about $6,383,000. Geneos Wealth Management Inc. lifted its holdings in shares of FS KKR Capital by 88.5% in the 1st quarter. Geneos Wealth Management Inc. now owns 644,908 shares of the company's stock valued at $13,511,000 after purchasing an additional 302,773 shares during the last quarter. Sage Advisors LLC acquired a new position in FS KKR Capital in the 1st quarter valued at about $4,471,000. Finally, Lido Advisors LLC acquired a new position in FS KKR Capital in the 4th quarter valued at about $4,448,000. 36.26% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the company. Wall Street Zen cut FS KKR Capital from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Wells Fargo & Company dropped their price target on FS KKR Capital from $18.00 to $15.00 and set an "underweight" rating on the stock in a research report on Friday, August 8th. Oppenheimer dropped their price target on FS KKR Capital from $22.00 to $21.00 and set a "market perform" rating on the stock in a research report on Friday, May 9th. Keefe, Bruyette & Woods dropped their price target on FS KKR Capital from $19.00 to $18.50 and set a "market perform" rating on the stock in a research report on Tuesday, August 12th. Finally, B. Riley assumed coverage on FS KKR Capital in a research report on Tuesday, May 13th. They issued a "neutral" rating and a $19.00 price target on the stock. Five equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $18.42.

FS KKR Capital Price Performance

Shares of FSK traded down $0.03 on Thursday, reaching $18.00. The stock had a trading volume of 1,111,210 shares, compared to its average volume of 2,698,606. The firm has a market capitalization of $5.04 billion, a PE ratio of 23.07 and a beta of 0.93. The company has a quick ratio of 2.40, a current ratio of 2.40 and a debt-to-equity ratio of 1.31. The firm has a 50-day moving average of $20.19 and a 200 day moving average of $20.76. FS KKR Capital Corp. has a twelve month low of $17.35 and a twelve month high of $24.10.

FS KKR Capital (NYSE:FSK - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The company reported ($0.60) earnings per share for the quarter, missing analysts' consensus estimates of $0.63 by ($1.23). The firm had revenue of $398.00 million during the quarter, compared to analyst estimates of $402.00 million. FS KKR Capital had a return on equity of 6.24% and a net margin of 13.24%.During the same quarter in the prior year, the company earned $0.75 EPS. Sell-side analysts expect that FS KKR Capital Corp. will post 2.89 EPS for the current year.

FS KKR Capital Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 2nd. Investors of record on Wednesday, September 17th will be issued a $0.70 dividend. The ex-dividend date is Wednesday, September 17th. This represents a $2.80 dividend on an annualized basis and a dividend yield of 15.6%. This is an increase from FS KKR Capital's previous quarterly dividend of $0.64. FS KKR Capital's payout ratio is currently 328.21%.

About FS KKR Capital

FS KKR Capital Corp. is a business development company specializing in investments in debt securities. It provides customized credit solutions to private middle market U.S. companies. It invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market U.S.