Waterloo Capital L.P. Decreases Position in FS KKR Capital Corp. $FSK

Key Points

• Waterloo Capital L.P. sharply reduced its FS KKR Capital stake by 83.4% in the fourth quarter, leaving it with 35,805 shares worth about $530,000.
• Analyst sentiment has turned more cautious, with several firms cutting price targets or ratings; the stock now carries a consensus “Reduce” rating and a target price of $10.58.
• FS KKR Capital recently missed earnings and revenue estimates, while also declaring a quarterly dividend of $0.42 per share, which implies a high annualized yield of 15.3%.

Waterloo Capital L.P. cut its position in FS KKR Capital Corp. (NYSE:FSK - Free Report) by 83.4% in the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 35,805 shares of the company's stock after selling 180,328 shares during the period. Waterloo Capital L.P.'s holdings in FS KKR Capital were worth $530,000 as of its most recent SEC filing.

Other large investors have also bought and sold shares of the company. Thurston Springer Miller Herd & Titak Inc. purchased a new position in FS KKR Capital in the fourth quarter worth about $26,000. FNY Investment Advisers LLC purchased a new position in FS KKR Capital in the fourth quarter worth about $28,000. Halbert Hargrove Global Advisors LLC purchased a new position in FS KKR Capital in the fourth quarter worth about $31,000. Basepoint Wealth LLC purchased a new position in FS KKR Capital in the fourth quarter worth about $31,000. Finally, Strategic Advocates LLC purchased a new position in FS KKR Capital in the third quarter worth about $38,000. 36.26% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

FSK has been the subject of a number of research analyst reports. Truist Financial reduced 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. Weiss Ratings lowered shares of FS KKR Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, March 5th. Wall Street Zen lowered shares of FS KKR Capital from a "hold" rating to a "sell" rating in a research note on Saturday, February 28th. 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 note on Friday, March 13th. Finally, Zacks Research upgraded shares of FS KKR Capital from a "strong sell" rating to a "hold" rating in a research note on Monday, May 4th. Seven research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus target price of $10.58.

Key Headlines Impacting FS KKR Capital

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 Stock Performance

Shares of NYSE FSK opened at $10.95 on Tuesday. The firm has a 50 day moving average of $10.68 and a 200 day moving average of $12.75. The company has a current ratio of 2.00, a quick ratio of 2.00 and a debt-to-equity ratio of 1.38. The firm has a market capitalization of $3.07 billion, a price-to-earnings ratio of -5.56 and a beta of 0.85. FS KKR Capital Corp. has a 12-month low of $9.72 and a 12-month high of $22.68.

FS KKR Capital (NYSE:FSK - Get Free Report) last announced its 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 business had revenue of $304.00 million for 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%. The business's quarterly revenue was down 24.0% compared to the same quarter last year. During the same quarter last year, the firm posted $0.65 earnings per share. On average, research analysts anticipate that FS KKR Capital Corp. will post 1.66 earnings per share for the current year.

FS KKR Capital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Wednesday, June 17th will be given a $0.42 dividend. The ex-dividend date is Wednesday, June 17th. This represents a $1.68 dividend on an annualized basis and a yield of 15.3%. FS KKR Capital's dividend payout ratio is presently -85.28%.

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.

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