FS Credit Opportunities Corp. (NYSE:FSCO) Sees Large Drop in Short Interest

Key Points

• Short interest in FSCO fell sharply by 55.0% in April to 159,983 shares (about 0.1% of the float), leaving a very low days-to-cover of 0.2 days.
• Insider Michael C. Forman bought 38,549 shares at $5.20 on Feb. 26, increasing his holdings to 44,312 shares; company insiders now own roughly 0.27% of FSCO.
• Several institutional investors boosted positions (Wagner Wealth Management now holds 3.47M shares), lifting institutional ownership to 36.37%, and the fund declared a monthly dividend of $0.0583 (ex‑div Apr. 23) implying a 14.0% yield.

FS Credit Opportunities Corp. (NYSE:FSCO - Get Free Report) was the target of a large decline in short interest in the month of April. As of April 15th, there was short interest totaling 159,983 shares, a decline of 55.0% from the March 31st total of 355,437 shares. Approximately 0.1% of the shares of the company are short sold. Based on an average daily trading volume, of 1,040,497 shares, the days-to-cover ratio is currently 0.2 days.

Insider Activity

In other news, insider Michael C. Forman acquired 38,549 shares of the business's stock in a transaction on Thursday, February 26th. The stock was bought at an average cost of $5.20 per share, for a total transaction of $200,454.80. Following the purchase, the insider owned 44,312 shares in the company, valued at approximately $230,422.40. This represents a 668.91% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.27% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Wagner Wealth Management LLC lifted its holdings in FS Credit Opportunities by 781.3% in the first quarter. Wagner Wealth Management LLC now owns 3,474,655 shares of the company's stock valued at $17,721,000 after acquiring an additional 3,080,389 shares during the last quarter. Sit Investment Associates Inc. lifted its holdings in FS Credit Opportunities by 6.9% in the fourth quarter. Sit Investment Associates Inc. now owns 3,247,090 shares of the company's stock valued at $20,457,000 after acquiring an additional 210,736 shares during the last quarter. Thomas J. Herzfeld Advisors Inc. lifted its holdings in FS Credit Opportunities by 97.2% in the fourth quarter. Thomas J. Herzfeld Advisors Inc. now owns 1,899,781 shares of the company's stock valued at $11,969,000 after acquiring an additional 936,272 shares during the last quarter. Rockefeller Capital Management L.P. lifted its holdings in FS Credit Opportunities by 4.9% in the fourth quarter. Rockefeller Capital Management L.P. now owns 1,295,650 shares of the company's stock valued at $8,163,000 after acquiring an additional 60,398 shares during the last quarter. Finally, Matisse Capital acquired a new position in FS Credit Opportunities in the fourth quarter valued at approximately $5,657,000. 36.37% of the stock is currently owned by institutional investors and hedge funds.

FS Credit Opportunities Price Performance

Shares of FSCO stock traded up $0.02 during trading hours on Friday, reaching $5.01. The company had a trading volume of 1,383,144 shares, compared to its average volume of 1,855,919. The stock has a fifty day moving average of $5.13 and a 200-day moving average of $5.89. FS Credit Opportunities has a 12-month low of $4.13 and a 12-month high of $7.65.

FS Credit Opportunities (NYSE:FSCO - Get Free Report) last posted its quarterly earnings results on Monday, March 2nd. The company reported $0.11 earnings per share (EPS) for the quarter. The company had revenue of $57.34 million during the quarter.

FS Credit Opportunities Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Thursday, April 23rd will be given a $0.0583 dividend. The ex-dividend date is Thursday, April 23rd. This represents a c) dividend on an annualized basis and a dividend yield of 14.0%.

About FS Credit Opportunities

FS Credit Opportunities Fund Inc NYSE: FSCO is a diversified closed-end management investment company that seeks to provide shareholders with a high level of current income and capital appreciation. The fund pursues its objectives by investing primarily in corporate credit instruments, including high-yield bonds, leveraged loans and other credit-related securities. FSCO’s flexible mandate allows it to allocate across the credit spectrum, rotating among sectors, maturities and structures in response to changing market conditions.

Under normal market environments, the fund typically invests at least 80% of its total assets in non-investment grade corporate debt securities, with the remainder allocated to investment-grade obligations, cash and cash equivalents.

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