UBS Group AG Raises Stock Position in FS KKR Capital Corp. $FSK

Key Points

• UBS Group AG increased its stake in FS KKR Capital (NYSE:FSK) by 15.3% in Q4, now holding 3,806,076 shares valued at about $56.4 million, and institutional investors own roughly 36.3% of the stock.
• Multiple brokerages have cut price targets and ratings on FSK, leaving the consensus rating at "Reduce" with an average target price of $12.50.
• FSK faces heightened risk from several class-action lawsuits alleging overstated valuations and disclosures, while recent quarterly results missed EPS and revenue estimates—factors that may prolong volatility and selling pressure.

UBS Group AG boosted its holdings in FS KKR Capital Corp. (NYSE:FSK - Free Report) by 15.3% during the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 3,806,076 shares of the company's stock after acquiring an additional 505,982 shares during the quarter. UBS Group AG's holdings in FS KKR Capital were worth $56,368,000 at the end of the most recent reporting period.

A number of other institutional investors have also added to or reduced their stakes in the business. Sanctuary Advisors LLC increased its stake in FS KKR Capital by 0.7% in the 4th quarter. Sanctuary Advisors LLC now owns 632,017 shares of the company's stock worth $9,360,000 after acquiring an additional 4,695 shares during the last quarter. Concurrent Investment Advisors LLC increased its stake in FS KKR Capital by 7.8% in the 4th quarter. Concurrent Investment Advisors LLC now owns 25,071 shares of the company's stock worth $371,000 after acquiring an additional 1,813 shares during the last quarter. Diversified Enterprises LLC bought a new position in FS KKR Capital in the 4th quarter worth about $4,711,000. Legacy Capital Group California Inc. increased its stake in FS KKR Capital by 48.8% in the 4th quarter. Legacy Capital Group California Inc. now owns 313,615 shares of the company's stock worth $4,645,000 after acquiring an additional 102,864 shares during the last quarter. Finally, HB Wealth Management LLC increased its stake in FS KKR Capital by 22.2% in the 4th quarter. HB Wealth Management LLC now owns 16,745 shares of the company's stock worth $248,000 after acquiring an additional 3,047 shares during the last quarter. 36.26% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of brokerages have weighed in on FSK. JPMorgan Chase & Co. decreased their target price on FS KKR Capital from $13.00 to $9.50 and set a "neutral" rating on the stock in a research note on Friday, March 13th. Wells Fargo & Company cut their price objective on FS KKR Capital from $15.00 to $11.00 and set an "equal weight" rating for the company in a report on Friday, February 27th. Weiss Ratings cut FS KKR Capital from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, March 5th. Royal Bank Of Canada cut their price objective on FS KKR Capital from $15.00 to $13.00 and set a "sector perform" rating for the company in a report on Monday, April 6th. Finally, Wall Street Zen cut FS KKR Capital from a "hold" rating to a "sell" rating in a report on Saturday, February 28th. Eight research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Reduce" and an average target price of $12.50.

Insiders Place Their Bets

In related news, insider Daniel Pietrzak bought 5,000 shares of the company's stock in a transaction that occurred on Friday, February 27th. The stock was bought at an average cost of $11.25 per share, for a total transaction of $56,250.00. Following the acquisition, the insider directly owned 64,800 shares of the company's stock, valued at $729,000. The trade was a 8.36% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.25% of the stock is owned by corporate insiders.

FS KKR Capital News Roundup

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

• Positive Sentiment: Zacks upgraded FSK from "strong sell" to "hold," a modest positive signal that may limit further weakness from some retail/quant selling. Zacks Upgrade
• Neutral Sentiment: FS KKR was scheduled to report earnings this week (investors were already focused on recent quarterly results that missed EPS and revenue estimates), which can increase volatility as markets reassess fundamentals. Earnings Notice
• Negative Sentiment: Multiple law firms have filed or announced class actions alleging securities fraud tied to the company's disclosures and the post-revelation stock drop; firms are soliciting lead plaintiffs and reminding investors of filing deadlines — this amplifies litigation risk and could pressure the stock and balance-sheet expectations. Class Action — BusinessWire
• Negative Sentiment: Allegations center on overstated portfolio valuations, overstated effectiveness of restructuring of nonaccrual assets, and overstated durability of the quarterly distribution strategy — if proven, these claims could lead to restatements, legal settlements, or changes to dividend policy. Allegations Detail — GlobeNewswire
• Negative Sentiment: Broader press coverage and investor complaints (e.g., accusations of misleading disclosures amid multiyear losses) extend reputational risk beyond initial legal filings and may prolong volatility and selling pressure. Press Coverage — Courthouse News

FS KKR Capital Price Performance

FSK opened at $11.51 on Wednesday. The stock has a 50-day moving average price of $10.73 and a 200-day moving average price of $13.32. 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 stock has a market capitalization of $3.22 billion, a P/E ratio of 383.77 and a beta of 0.85.

FS KKR Capital (NYSE:FSK - Get Free Report) last posted its quarterly earnings data 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). The firm had revenue of $348.00 million during the quarter, compared to analysts' expectations of $361.59 million. FS KKR Capital had a return on equity of 5.21% and a net margin of 0.72%.During the same quarter in the previous year, the company posted $0.66 earnings per share. Equities analysts predict that FS KKR Capital Corp. will post 1.7 earnings per share for the current fiscal year.

FS KKR Capital Dividend Announcement

The business also recently announced a special dividend, which was paid on Thursday, April 2nd. Investors 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 yield of 118.0%. FS KKR Capital's dividend payout ratio 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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