SummitTX Capital L.P. Buys Shares of 162,066 FS KKR Capital Corp. $FSK

Key Points

• SummitTX Capital bought 162,066 shares of FS KKR Capital in the first quarter, valued at approximately $1.65 million and representing a 0.06% stake. Institutional investors collectively own 36.26% of the company.
• FS KKR Capital’s latest quarterly results fell short of expectations, with EPS of $0.41 versus the $0.44 consensus and revenue of $304 million, down 24% year over year. The stock opened at $10.74, near its 52-week low, and analysts have an average “Reduce” rating.
• The company paid a quarterly dividend of $0.42 per share, equivalent to an annualized $1.68 dividend and a 15.6% yield. Analysts’ average price target is $10.58, while several firms have lowered their targets or maintained neutral-to-negative ratings.

SummitTX Capital L.P. purchased a new position in shares of FS KKR Capital Corp. (NYSE:FSK - Free Report) in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 162,066 shares of the company's stock, valued at approximately $1,650,000. SummitTX Capital L.P. owned 0.06% of FS KKR Capital as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds also recently modified their holdings of FSK. Bison Wealth LLC raised its stake in shares of FS KKR Capital by 3.4% during the fourth quarter. Bison Wealth LLC now owns 21,935 shares of the company's stock valued at $476,000 after purchasing an additional 720 shares in the last quarter. Acorn Wealth Advisors LLC lifted its holdings in FS KKR Capital by 1.4% in the fourth quarter. Acorn Wealth Advisors LLC now owns 65,079 shares of the company's stock worth $964,000 after purchasing an additional 914 shares during the period. Rockport Wealth LLC grew its position in FS KKR Capital by 9.8% in the 1st quarter. Rockport Wealth LLC now owns 11,367 shares of the company's stock valued at $116,000 after buying an additional 1,018 shares in the last quarter. Delta Investment Management LLC grew its position in FS KKR Capital by 4.6% in the 4th quarter. Delta Investment Management LLC now owns 24,086 shares of the company's stock valued at $357,000 after buying an additional 1,049 shares in the last quarter. Finally, Wescott Financial Advisory Group LLC increased its stake in FS KKR Capital by 3.9% during the 4th quarter. Wescott Financial Advisory Group LLC now owns 28,412 shares of the company's stock valued at $421,000 after buying an additional 1,079 shares during the period. Institutional investors own 36.26% of the company's stock.

FS KKR Capital Trading Down 2.2%

Shares of NYSE:FSK opened at $10.74 on Thursday. The company has a debt-to-equity ratio of 1.38, a quick ratio of 2.00 and a current ratio of 2.00. The stock has a market capitalization of $3.01 billion, a price-to-earnings ratio of -5.45 and a beta of 0.82. FS KKR Capital Corp. has a 1-year low of $9.72 and a 1-year high of $21.71. The company has a 50 day moving average price of $10.69 and a 200 day moving average price of $11.40.

FS KKR Capital (NYSE:FSK - Get Free Report) last posted its quarterly earnings results on Monday, May 11th. The company reported $0.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.44 by ($0.03). The company had revenue of $304.00 million during 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%. FS KKR Capital's quarterly revenue was down 24.0% on a year-over-year basis. During the same period in the prior year, the company posted $0.65 EPS. On average, research analysts anticipate that FS KKR Capital Corp. will post 1.64 EPS for the current fiscal year.

FS KKR Capital Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Wednesday, June 17th were given a dividend of $0.42 per share. The ex-dividend date of this dividend was 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 -85.28%.

Analyst Upgrades and Downgrades

A number of analysts have commented on FSK shares. Keefe, Bruyette & Woods dropped their price target on shares of FS KKR Capital from $15.00 to $11.00 and set a "market perform" rating on the stock in a research report on Thursday, April 16th. Zacks Research cut shares of FS KKR Capital from a "hold" rating to a "strong sell" rating in a report on Monday, July 13th. Wells Fargo & Company lowered their price objective on shares of FS KKR Capital from $11.00 to $10.00 and set an "equal weight" rating on the stock in a research note on Tuesday, May 12th. Royal Bank Of Canada restated a "sector perform" rating and issued a $11.00 target price on shares of FS KKR Capital in a research report on Tuesday, May 12th. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of FS KKR Capital in a research report on Tuesday, June 2nd. Six research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and an average target price of $10.58.

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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