Northwestern Mutual Wealth Management Co. Buys 7,726,974 Shares of FS KKR Capital Corp. $FSK

Key Points

• Northwestern Mutual Wealth Management Co. dramatically increased its FS KKR Capital stake in Q4, buying 7.73 million additional shares and lifting its holdings to 7.74 million shares valued at about $114.6 million.
• Wall Street sentiment remains cautious: seven analysts rate FSK as a Hold, one rates it a Sell, and the consensus price target is $10.58, below the stock’s recent $11.00 opening price.
• FS KKR Capital reported mixed results and continued shareholder payouts, missing Q1 EPS and revenue estimates while also declaring a quarterly dividend of $0.42 per share, implying a 15.3% annualized yield.

Northwestern Mutual Wealth Management Co. lifted its stake in shares of FS KKR Capital Corp. (NYSE:FSK - Free Report) by 55,074.7% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 7,741,004 shares of the company's stock after acquiring an additional 7,726,974 shares during the quarter. Northwestern Mutual Wealth Management Co.'s holdings in FS KKR Capital were worth $114,644,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds also recently made changes to their positions in the stock. Proactive Wealth Strategies LLC raised its position in shares of FS KKR Capital by 5.2% during the fourth quarter. Proactive Wealth Strategies LLC now owns 68,394 shares of the company's stock worth $1,013,000 after acquiring an additional 3,361 shares during the last quarter. Global Wealth Management Investment Advisory Inc. raised its position in shares of FS KKR Capital by 39.8% during the fourth quarter. Global Wealth Management Investment Advisory Inc. now owns 77,498 shares of the company's stock worth $1,148,000 after acquiring an additional 22,056 shares during the last quarter. World Investment Advisors raised its position in shares of FS KKR Capital by 439.9% during the fourth quarter. World Investment Advisors now owns 86,263 shares of the company's stock worth $1,278,000 after acquiring an additional 70,285 shares during the last quarter. RFG Advisory LLC raised its position in shares of FS KKR Capital by 10.2% during the fourth quarter. RFG Advisory LLC now owns 111,469 shares of the company's stock worth $1,651,000 after acquiring an additional 10,284 shares during the last quarter. Finally, Alpha Wealth Funds LLC raised its position in shares of FS KKR Capital by 196.9% during the fourth quarter. Alpha Wealth Funds LLC now owns 166,364 shares of the company's stock worth $2,464,000 after acquiring an additional 110,332 shares during the last quarter. 36.26% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on FSK shares. Zacks Research upgraded FS KKR Capital from a "strong sell" rating to a "hold" rating in a research report on Monday, May 4th. Royal Bank Of Canada restated a "sector perform" rating and set a $11.00 price objective on shares of FS KKR Capital in a research report on Tuesday. JPMorgan Chase & Co. lowered their price objective on FS KKR Capital from $13.00 to $9.50 and set a "neutral" rating for the company in a research report on Friday, March 13th. Wells Fargo & Company lowered their price objective 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, Truist Financial dropped their price target on FS KKR Capital from $17.00 to $11.00 and set a "hold" rating on the stock in a research note on Wednesday, March 4th. Seven analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and an average price target of $10.58.

Insider Activity at FS KKR Capital

In other news, insider Daniel Pietrzak acquired 5,000 shares of the firm's stock in a transaction dated Friday, February 27th. The stock was purchased at an average price of $11.25 per share, for a total transaction of $56,250.00. Following the completion of the acquisition, the insider directly owned 64,800 shares in the company, valued at $729,000. The trade was a 8.36% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. 0.18% of the stock is currently owned by corporate insiders.

Key Stories Impacting FS KKR Capital

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

• Positive Sentiment: No clearly positive company-specific catalyst was included in the latest articles.
• Neutral Sentiment: Multiple law firms are advertising lead-plaintiff deadlines in the FS KKR Capital securities case, including deadlines in early July 2026. Article Title
• Neutral Sentiment: The class action covers investors who bought FSK between May 8, 2024 and February 25, 2026, indicating the dispute is centered on past disclosures rather than a new operating update. Article Title
• Negative Sentiment: The new securities fraud lawsuit and repeated reminders from plaintiff firms may increase uncertainty around FS KKR Capital’s financial reporting and dividend/portfolio valuations, which is likely contributing to weaker sentiment. Article Title

FS KKR Capital Trading Up 1.8%

NYSE FSK opened at $11.00 on Friday. The company has a market cap of $3.08 billion, a price-to-earnings ratio of -5.58 and a beta of 0.85. FS KKR Capital Corp. has a 52 week low of $9.72 and a 52 week high of $22.68. The business has a 50 day moving average price of $10.59 and a 200-day moving average price of $13.11. The company has a quick ratio of 3.05, a current ratio of 2.00 and a debt-to-equity ratio of 1.38.

FS KKR Capital (NYSE:FSK - Get Free Report) last released its quarterly earnings data on Monday, May 11th. The company reported $0.41 EPS for the quarter, missing the consensus estimate of $0.44 by ($0.03). The firm had revenue of $304.00 million for the quarter, compared to the consensus estimate of $316.81 million. FS KKR Capital had a negative net margin of 38.65% and a positive return on equity of 4.34%. The company's revenue was down 24.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.65 EPS. As a group, equities analysts expect that FS KKR Capital Corp. will post 1.68 earnings per share for the current fiscal year.

FS KKR Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 2nd. Stockholders of record on Wednesday, June 17th will be issued a dividend of $0.42 per share. The ex-dividend date is Wednesday, June 17th. This represents a $1.68 annualized dividend and a dividend yield of 15.3%. FS KKR Capital's payout ratio is currently -91.37%.

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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