MGO One Seven LLC Sells 416,304 Shares of FS KKR Capital Corp. $FSK

Key Points

• MGO One Seven LLC sharply cut its FS KKR Capital stake by 84.1% in the fourth quarter, selling 416,304 shares and leaving it with 78,659 shares valued at about $1.17 million.
• FS KKR Capital reported weaker-than-expected quarterly results, with EPS of $0.41 versus estimates of $0.44 and revenue of $304 million below forecasts, while analysts currently have a consensus rating of “Reduce”.
• The company declared a quarterly dividend of $0.42 per share, implying an annualized yield of about 15.6%, even as the stock has faced pressure from lowered price targets and recent financing concerns.

MGO One Seven LLC decreased its position in FS KKR Capital Corp. (NYSE:FSK - Free Report) by 84.1% during the 4th quarter, according to its most recent filing with the SEC. The institutional investor owned 78,659 shares of the company's stock after selling 416,304 shares during the period. MGO One Seven LLC's holdings in FS KKR Capital were worth $1,165,000 as of its most recent filing with the SEC.

Other institutional investors have also recently bought and sold shares of the company. Thurston Springer Miller Herd & Titak Inc. bought a new stake in FS KKR Capital in the 4th quarter valued at approximately $26,000. FNY Investment Advisers LLC acquired a new position in shares of FS KKR Capital during the 4th quarter worth approximately $28,000. Eastern Bank increased its position in shares of FS KKR Capital by 355.6% during the 3rd quarter. Eastern Bank now owns 2,000 shares of the company's stock worth $30,000 after purchasing an additional 1,561 shares during the last quarter. Halbert Hargrove Global Advisors LLC acquired a new position in shares of FS KKR Capital during the 4th quarter worth approximately $31,000. Finally, Strategic Advocates LLC acquired a new position in shares of FS KKR Capital during the 3rd quarter worth approximately $38,000. Institutional investors own 36.26% of the company's stock.

FS KKR Capital Stock Down 0.9%

FSK stock opened at $10.74 on Tuesday. The company has a current ratio of 3.05, a quick ratio of 3.05 and a debt-to-equity ratio of 1.31. The firm has a market capitalization of $3.01 billion, a PE ratio of 358.10 and a beta of 0.85. FS KKR Capital Corp. has a 1-year low of $9.72 and a 1-year high of $22.68. The business's 50 day simple moving average is $10.60 and its 200 day simple moving average is $13.21.

FS KKR Capital (NYSE:FSK - Get Free Report) last posted 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). The business had revenue of $304.00 million for the quarter, compared to analyst estimates of $316.81 million. FS KKR Capital had a return on equity of 5.21% and a net margin of 0.72%.The firm's revenue was down 24.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.65 earnings per share. As a group, research analysts anticipate that FS KKR Capital Corp. will post 1.7 EPS for the current year.

FS KKR Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Wednesday, June 17th will be issued 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 15.6%. FS KKR Capital's payout ratio is presently 6,000.00%.

Analysts Set New Price Targets

FSK has been the topic of several recent analyst reports. JPMorgan Chase & Co. lowered their price target on FS KKR Capital from $13.00 to $9.50 and set a "neutral" rating on the stock in a research report on Friday, March 13th. Wells Fargo & Company lowered their price target on FS KKR Capital from $15.00 to $11.00 and set an "equal weight" rating on the stock in a research report on Friday, February 27th. Zacks Research raised FS KKR Capital from a "strong sell" rating to a "hold" rating in a research report on Monday, May 4th. Weiss Ratings lowered FS KKR Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, March 5th. Finally, Truist Financial lowered their price target on FS KKR Capital from $17.00 to $11.00 and set a "hold" rating on the stock in a research report on Wednesday, March 4th. Seven research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, FS KKR Capital has a consensus rating of "Reduce" and an average price target of $11.08.

Insider Buying and Selling at FS KKR Capital

In other FS KKR Capital news, insider Daniel Pietrzak bought 5,000 shares of the firm's stock in a transaction that occurred on Friday, February 27th. The shares were acquired 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 document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.25% of the company's stock.

Key Stories Impacting FS KKR Capital

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

• Positive Sentiment: The board declared a second-quarter dividend of $0.42 per share, reinforcing FSK’s income appeal and implying a high annualized yield of about 15.6%. Article Title
• Neutral Sentiment: KKR Alternative Assets said it plans a tender offer for up to $150 million of FSK common stock and will provide a $150 million convertible preferred equity commitment, which could add financial support and improve flexibility. Article Title
• Negative Sentiment: FS KKR reported weaker-than-expected Q1 results, with EPS of $0.41 missing estimates and revenue of $304 million also falling short, adding to concerns about earnings momentum. Article Title
• Negative Sentiment: JPMorgan-led lenders reduced FSK’s credit facility by about $648 million and increased borrowing costs, signaling tighter financing conditions and rising risk. Article Title
• Negative Sentiment: Multiple shareholder lawsuits and law-firm alerts were filed over alleged securities-law violations, creating additional headline risk and potential legal costs. Article Title

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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