FS KKR Capital Corp. (NYSE:FSK) Given Average Recommendation of "Reduce" by Analysts

Key Points

• Analysts give FSK an average rating of "Reduce" from nine firms (2 sell, 7 hold) with an average 1‑year target of $12.50, and several recent price‑target cuts to roughly $9.50–$11.00.
• FSK missed quarterly estimates, reporting EPS of $0.52 vs. $0.55 expected and revenue of $348M vs. $361.6M, while showing low ROE (5.21%), a slim net margin (0.72%) and an extremely high P/E of 352.5.
• The company paid a $0.03 special dividend (ex‑dividend March 18) noted in the report as a 118% yield with a DPR of 6,000%, an insider bought 5,000 shares, and institutional investors own about 36.3% of the stock.

FS KKR Capital Corp. (NYSE:FSK - Get Free Report) has received an average rating of "Reduce" from the nine ratings firms that are covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a sell recommendation and seven have assigned a hold recommendation to the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $12.50.

FSK has been the topic of several analyst reports. B. Riley Financial reduced their price target on shares of FS KKR Capital from $17.50 to $11.00 and set a "neutral" rating on the stock in a research report on Tuesday, March 3rd. JPMorgan Chase & Co. reduced their price target on shares of 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. Zacks Research lowered shares of FS KKR Capital from a "hold" rating to a "strong sell" rating in a research report on Monday, March 2nd. Truist Financial reduced their price target on shares of 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, Wells Fargo & Company reduced their price target on shares of 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.

FS KKR Capital Stock Performance

NYSE FSK opened at $10.58 on Friday. 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 firm has a market capitalization of $2.96 billion, a price-to-earnings ratio of 352.50 and a beta of 0.83. The firm's 50 day simple moving average is $11.01 and its 200 day simple moving average is $13.50. FS KKR Capital has a 1 year low of $9.72 and a 1 year high of $22.68.

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 the consensus estimate of $0.55 by ($0.03). The firm had revenue of $348.00 million for the quarter, compared to analyst estimates 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 prior year, the business posted $0.66 EPS. As a group, research analysts expect that FS KKR Capital will post 1.7 earnings per share for the current fiscal year.

FS KKR Capital Announces Dividend

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

Insiders Place Their Bets

In related news, insider Daniel Pietrzak bought 5,000 shares of the business's stock in a transaction on Friday, February 27th. The shares were purchased at an average price of $11.25 per share, for a total transaction of $56,250.00. Following the completion of the transaction, the insider directly owned 64,800 shares of the company's stock, valued at approximately $729,000. This represents a 8.36% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this link. 0.18% of the stock is owned by corporate insiders.

Institutional Trading of FS KKR Capital

Hedge funds have recently added to or reduced their stakes in the stock. Thurston Springer Miller Herd & Titak Inc. acquired a new stake in FS KKR Capital in the fourth quarter valued at approximately $26,000. Jessup Wealth Management Inc acquired a new stake in FS KKR Capital in the fourth quarter valued at approximately $26,000. FNY Investment Advisers LLC acquired a new stake in FS KKR Capital in the fourth quarter valued at approximately $28,000. Eastern Bank boosted its position in FS KKR Capital by 355.6% in the third quarter. Eastern Bank now owns 2,000 shares of the company's stock valued at $30,000 after buying an additional 1,561 shares in the last quarter. Finally, Halbert Hargrove Global Advisors LLC acquired a new stake in FS KKR Capital in the fourth quarter valued at approximately $31,000. Institutional investors and hedge funds own 36.26% of the company's stock.

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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