Transcend Capital Advisors LLC Decreases Stock Position in FS KKR Capital Corp. $FSK

Key Points

• Transcend Capital Advisors LLC cut its stake in FS KKR Capital by 19.0% in Q4, leaving it with 796,311 shares valued at about $11.79 million and ranking FSK as its 19th largest holding.
• FS KKR missed quarterly expectations (EPS $0.52 vs. $0.55 est.; revenue $348M vs. $361.6M est.), reported weak margins, and has seen multiple analyst downgrades and price-target cuts — MarketBeat's consensus rating is Reduce with a $13.07 target.
• The company paid a special dividend of $0.03 (paid April 2) and an insider purchased 5,000 shares at $11.25, presenting mixed signals of shareholder distributions alongside insider buying.

Transcend Capital Advisors LLC lessened its holdings in FS KKR Capital Corp. (NYSE:FSK - Free Report) by 19.0% during the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 796,311 shares of the company's stock after selling 187,239 shares during the quarter. FS KKR Capital makes up 0.9% of Transcend Capital Advisors LLC's holdings, making the stock its 19th largest holding. Transcend Capital Advisors LLC's holdings in FS KKR Capital were worth $11,793,000 as of its most recent SEC filing.

Several other hedge funds also recently bought and sold shares of FSK. Beacon Capital Management Inc. bought a new position in FS KKR Capital in the 2nd quarter valued at $26,000. Thurston Springer Miller Herd & Titak Inc. bought a new position in FS KKR Capital in the 4th quarter valued at $26,000. FNY Investment Advisers LLC bought a new position in FS KKR Capital in the 4th quarter valued at $28,000. Eastern Bank grew its position in FS KKR Capital by 355.6% in the 3rd quarter. Eastern Bank now owns 2,000 shares of the company's stock valued at $30,000 after acquiring an additional 1,561 shares during the last quarter. Finally, Halbert Hargrove Global Advisors LLC bought a new position in FS KKR Capital in the 4th quarter valued at $31,000. Institutional investors own 36.26% of the company's stock.

FS KKR Capital Price Performance

FSK opened at $10.36 on Tuesday. FS KKR Capital Corp. has a 12-month low of $9.72 and a 12-month high of $22.68. 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 business's fifty day simple moving average is $11.37 and its 200-day simple moving average is $13.70. The company has a market capitalization of $2.90 billion, a price-to-earnings ratio of 345.47 and a beta of 0.83.

FS KKR Capital (NYSE:FSK - Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The company reported $0.52 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.55 by ($0.03). FS KKR Capital had a return on equity of 5.21% and a net margin of 0.72%.The firm had revenue of $348.00 million for the quarter, compared to the consensus estimate of $361.59 million. During the same period in the previous year, the company posted $0.66 EPS. On average, equities research analysts anticipate that FS KKR Capital Corp. will post 2.89 earnings per share for the current fiscal year.

FS KKR Capital Announces Dividend

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

Wall Street Analyst Weigh In

Several brokerages have commented on FSK. Wall Street Zen downgraded FS KKR Capital from a "hold" rating to a "sell" rating in a research report on Saturday, February 28th. Wells Fargo & Company dropped 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 downgraded FS KKR Capital from a "hold" rating to a "strong sell" rating in a research report on Monday, March 2nd. 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 report on Wednesday, March 4th. Finally, JPMorgan Chase & Co. dropped 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. Seven analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Reduce" and a consensus target price of $13.07.

Insider Buying and Selling at FS KKR Capital

In related news, insider Daniel Pietrzak acquired 5,000 shares of the firm's stock in a transaction that occurred on Friday, February 27th. The stock was purchased at an average cost of $11.25 per share, for a total transaction of $56,250.00. Following the purchase, the insider directly owned 64,800 shares of the company's stock, valued at $729,000. This trade represents a 8.36% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this link. 0.25% of the stock is owned by company insiders.

FS KKR Capital Company 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.