PFG Advisors Has $196,000 Position in FS KKR Capital Corp. $FSK

Key Points

• PFG Advisors cut its stake in FS KKR Capital by 92.7% in Q4, selling 169,097 shares and ending with 13,226 shares worth about $196,000 per its 13F filing.
• Multiple analysts have lowered price targets and ratings—FSK's consensus is now a "Reduce" with a consensus target price of $12.50 after downgrades from firms including JPMorgan, RBC, Truist and B. Riley.
• FSK missed quarterly expectations (EPS $0.52 vs. $0.55 estimate) and paid a special $0.03 dividend; the report flags unusually high metric figures (a cited 118% dividend yield and a 6,000% payout ratio) that investors should scrutinize.

PFG Advisors lowered its holdings in FS KKR Capital Corp. (NYSE:FSK - Free Report) by 92.7% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 13,226 shares of the company's stock after selling 169,097 shares during the period. PFG Advisors' holdings in FS KKR Capital were worth $196,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also modified their holdings of FSK. Bulldog Investors LLP acquired a new position in FS KKR Capital during the third quarter valued at $3,600,000. Alpine Global Management LLC acquired a new stake in FS KKR Capital during the 3rd quarter worth about $1,477,000. Dynamic Technology Lab Private Ltd purchased a new position in FS KKR Capital during the 3rd quarter valued at about $1,135,000. DNB Asset Management AS grew its stake in FS KKR Capital by 37.7% during the 3rd quarter. DNB Asset Management AS now owns 183,144 shares of the company's stock valued at $2,734,000 after acquiring an additional 50,102 shares in the last quarter. Finally, Muzinich & Co. Inc. increased its holdings in shares of FS KKR Capital by 10.7% in the 3rd quarter. Muzinich & Co. Inc. now owns 894,437 shares of the company's stock valued at $13,354,000 after purchasing an additional 86,677 shares during the period. Institutional investors and hedge funds own 36.26% of the company's stock.

Insider Activity

In other FS KKR Capital news, insider Daniel Pietrzak acquired 5,000 shares of FS KKR Capital stock in a transaction that occurred on Friday, February 27th. The stock was acquired at an average price of $11.25 per share, with a total value of $56,250.00. Following the purchase, the insider owned 64,800 shares in the company, valued at approximately $729,000. This trade represents a 8.36% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.25% of the company's stock.

Analysts Set New Price Targets

A number of research firms have recently issued reports on FSK. JPMorgan Chase & Co. reduced their price target on shares of 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. Royal Bank Of Canada dropped their price objective on shares of FS KKR Capital from $15.00 to $13.00 and set a "sector perform" rating on the stock in a research note on Monday, April 6th. Weiss Ratings downgraded shares of FS KKR Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, March 5th. Truist Financial decreased their target price on shares of FS KKR Capital from $17.00 to $11.00 and set a "hold" rating for the company in a research note on Wednesday, March 4th. Finally, B. Riley Financial lowered their price target on shares of FS KKR Capital from $17.50 to $11.00 and set a "neutral" rating on the stock in a report on Tuesday, March 3rd. Seven research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, FS KKR Capital currently has a consensus rating of "Reduce" and a consensus target price of $12.50.

FS KKR Capital Trading Down 0.1%

Shares of NYSE FSK opened at $10.51 on Monday. The business has a 50 day simple moving average of $10.96 and a 200 day simple moving average of $13.46. FS KKR Capital Corp. has a 52 week low of $9.72 and a 52 week high of $22.68. The stock has a market cap of $2.94 billion, a price-to-earnings ratio of 350.17 and a beta of 0.83. The company has a debt-to-equity ratio of 1.31, a quick ratio of 3.05 and a current ratio of 3.05.

FS KKR Capital (NYSE:FSK - Get Free Report) last issued its quarterly earnings data on Wednesday, February 25th. The company reported $0.52 earnings per share for the quarter, missing the consensus estimate of $0.55 by ($0.03). The business had revenue of $348.00 million for the quarter, compared to the consensus estimate of $361.59 million. FS KKR Capital had a net margin of 0.72% and a return on equity of 5.21%. During the same period in the previous year, the business posted $0.66 EPS. On average, research analysts predict that FS KKR Capital Corp. will post 1.7 earnings per share for the current fiscal year.

FS KKR Capital Announces Dividend

The firm also recently declared a special dividend, which was paid on Thursday, April 2nd. Stockholders of record on Wednesday, March 18th were issued a dividend of $0.03 per share. The ex-dividend date was Wednesday, March 18th. This represents a dividend yield of 118.0%. FS KKR Capital's dividend payout ratio (DPR) is currently 6,000.00%.

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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