SCS Capital Management LLC Has $1.69 Million Stake in FS KKR Capital Corp. $FSK

Key Points

• SCS Capital Management cut its stake in FS KKR Capital by 75.4% in the fourth quarter, selling 349,797 shares and ending with 114,154 shares worth about $1.69 million.
• Several other institutional investors increased or initiated positions, and hedge funds and institutions now own 36.26% of the company’s stock.
• Wall Street sentiment remains cautious: analysts have mostly Hold/Neutral ratings, with a consensus target price of $10.58, while FS KKR Capital also faces litigation risk from class-action lawsuit activity tied to alleged misleading portfolio valuations.

SCS Capital Management LLC decreased its holdings in shares of FS KKR Capital Corp. (NYSE:FSK - Free Report) by 75.4% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 114,154 shares of the company's stock after selling 349,797 shares during the quarter. SCS Capital Management LLC's holdings in FS KKR Capital were worth $1,691,000 as of its most recent SEC filing.

Other large investors have also recently added to or reduced their stakes in the company. Bulldog Investors LLP acquired a new stake in FS KKR Capital in the third quarter valued at $3,600,000. UBS Group AG lifted its stake in FS KKR Capital by 15.3% in the fourth quarter. UBS Group AG now owns 3,806,076 shares of the company's stock valued at $56,368,000 after acquiring an additional 505,982 shares during the last quarter. Legacy Capital Group California Inc. lifted its stake in FS KKR Capital by 48.8% in the fourth quarter. Legacy Capital Group California Inc. now owns 313,615 shares of the company's stock valued at $4,645,000 after acquiring an additional 102,864 shares during the last quarter. Diversified Enterprises LLC acquired a new stake in FS KKR Capital in the fourth quarter valued at $4,711,000. Finally, Legal & General Group Plc lifted its stake in FS KKR Capital by 15.3% in the fourth quarter. Legal & General Group Plc now owns 2,296,070 shares of the company's stock valued at $33,993,000 after acquiring an additional 304,556 shares during the last quarter. Institutional investors and hedge funds own 36.26% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Truist Financial cut their price target 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. Wells Fargo & Company cut their price target on shares of FS KKR Capital from $11.00 to $10.00 and set an "equal weight" rating for the company in a research note on Tuesday, May 12th. B. Riley Financial dropped their price objective on shares of FS KKR Capital from $17.50 to $11.00 and set a "neutral" rating on the stock in a research report on Tuesday, March 3rd. Wall Street Zen lowered shares of FS KKR Capital from a "hold" rating to a "sell" rating in a research report on Saturday, February 28th. Finally, JPMorgan Chase & Co. dropped their price objective on shares of 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. Seven investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, FS KKR Capital presently has a consensus rating of "Reduce" and an average target price of $10.58.

FS KKR Capital News Summary

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

• Positive Sentiment: FS KKR Capital is reportedly planning to sell at least $400 million of junk bonds for high-yield investors, which could help it raise capital and support liquidity. FS KKR plans to sell at least $400M of junk bonds for high yield - report
• Neutral Sentiment: One article argues FS KKR Capital may be a buy as activist investor Saba enters ahead of a possible 13D filing, suggesting potential defense measures or a catalyst from shareholder activism. FS KKR Capital Finally A Buy On Saba Pre-13D Entry, Early Defense Measures
• Negative Sentiment: Multiple law firms are promoting class-action lawsuits and reminding investors of lead-plaintiff deadlines, alleging FS KKR Capital made misleading portfolio valuation disclosures that hurt shareholders. Rosen Encourages FS KKR Capital Investors to Secure Counsel
• Negative Sentiment: The lawsuits and deadline reminders from Bronstein, Gewirtz & Grossman, Faruqi & Faruqi, Berger Montague, and Schall reinforce litigation risk around the stock and may keep investors cautious. Bronstein, Gewirtz & Grossman class action alert

FS KKR Capital Price Performance

Shares of FSK opened at $10.95 on Tuesday. FS KKR Capital Corp. has a fifty-two week low of $9.72 and a fifty-two week high of $22.68. The firm has a market capitalization of $3.07 billion, a PE ratio of -5.56 and a beta of 0.85. The company's 50-day moving average is $10.68 and its 200-day moving average is $12.75. The company has a debt-to-equity ratio of 1.38, a current ratio of 2.00 and a quick ratio of 2.00.

FS KKR Capital (NYSE:FSK - Get Free Report) last released its quarterly earnings results on Monday, May 11th. The company reported $0.41 EPS for the quarter, missing analysts' consensus estimates of $0.44 by ($0.03). FS KKR Capital had a positive return on equity of 4.34% and a negative net margin of 38.65%.The business had revenue of $304.00 million for the quarter, compared to the consensus estimate of $316.81 million. During the same period in the prior year, the business posted $0.65 earnings per share. FS KKR Capital's revenue was down 24.0% compared to the same quarter last year. Equities analysts forecast that FS KKR Capital Corp. will post 1.66 EPS for the current year.

FS KKR Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Wednesday, June 17th will be given a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a yield of 15.3%. The ex-dividend date of this dividend is 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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