FS KKR Capital (NYSE:FSK) Downgraded by Zacks Research to Strong Sell

Key Points

• Zacks Research downgraded FS KKR Capital from hold to strong sell, adding to a generally cautious analyst outlook.
• Other recent analyst actions were also mixed to negative, including lower price targets from Keefe, Bruyette & Woods and Wells Fargo, while MarketBeat shows a consensus rating of Reduce with a $10.58 price target.
• The company recently missed earnings expectations, reporting $0.41 EPS versus $0.44 expected, alongside revenue of $304 million that came in below estimates and was down 24% year over year.

FS KKR Capital (NYSE:FSK - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Monday,Zacks.com reports.

FSK has been the subject of several other reports. Keefe, Bruyette & Woods decreased their price objective on FS KKR Capital from $15.00 to $11.00 and set a "market perform" rating for the company in a research report on Thursday, April 16th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $11.00 price target on shares of FS KKR Capital in a research note on Tuesday, May 12th. Weiss Ratings reiterated a "sell (d+)" rating on shares of FS KKR Capital in a report on Tuesday, June 2nd. Finally, Wells Fargo & Company lowered their price objective on shares of FS KKR Capital from $11.00 to $10.00 and set an "equal weight" rating for the company in a research report on Tuesday, May 12th. Six investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, FS KKR Capital has an average rating of "Reduce" and a consensus price target of $10.58.

FS KKR Capital Price Performance

FSK opened at $10.78 on Monday. The stock has a market cap of $3.02 billion, a P/E ratio of -5.47 and a beta of 0.82. FS KKR Capital has a 12 month low of $9.72 and a 12 month high of $22.68. The company has a quick ratio of 2.00, a current ratio of 2.00 and a debt-to-equity ratio of 1.38. The company has a fifty day simple moving average of $10.69 and a 200 day simple moving average of $11.70.

FS KKR Capital (NYSE:FSK - Get Free Report) last posted its earnings results on Monday, May 11th. The company reported $0.41 earnings per share for the quarter, missing the consensus estimate of $0.44 by ($0.03). FS KKR Capital had a positive return on equity of 4.34% and a negative net margin of 38.65%.The business had revenue of $304.00 million for the quarter, compared to the consensus estimate of $316.81 million. During the same quarter in the prior year, the firm posted $0.65 earnings per share. The business's revenue was down 24.0% on a year-over-year basis. On average, research analysts expect that FS KKR Capital will post 1.64 EPS for the current year.

Institutional Trading of FS KKR Capital

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Bison Wealth LLC boosted its stake in shares of FS KKR Capital by 3.4% during the 4th quarter. Bison Wealth LLC now owns 21,935 shares of the company's stock worth $476,000 after buying an additional 720 shares during the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of FS KKR Capital by 13.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 267,890 shares of the company's stock valued at $5,612,000 after acquiring an additional 32,258 shares in the last quarter. Empowered Funds LLC increased its position in shares of FS KKR Capital by 139.9% in the first quarter. Empowered Funds LLC now owns 26,744 shares of the company's stock valued at $560,000 after acquiring an additional 15,596 shares during the last quarter. Marshall Wace LLP acquired a new stake in shares of FS KKR Capital in the second quarter valued at about $1,806,000. Finally, Nebula Research & Development LLC grew its stake in FS KKR Capital by 83.1% in the second quarter. Nebula Research & Development LLC now owns 20,236 shares of the company's stock valued at $420,000 after purchasing an additional 9,183 shares in the last quarter. 36.26% of the stock is currently owned by institutional investors and hedge funds.

About FS KKR Capital

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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