FS KKR Capital (NYSE:FSK) Hits New 52-Week Low - Time to Sell?

Key Points

• FS KKR Capital's shares have hit a new 52-week low at $16.94, dropping from a previous close of $17.54, with significant trading volume of over 3.7 million shares.
• Wells Fargo and Zacks have cut their price targets and ratings for the stock, with Wells Fargo lowering it to $15.00 and Zacks assigning a "strong sell" rating.
• The company announced an increase in its quarterly dividend from $0.64 to $0.70, reflecting a significant annual yield of 16.5%, despite a high dividend payout ratio of 328.21%.

FS KKR Capital Corp. (NYSE:FSK - Get Free Report) shares hit a new 52-week low on Tuesday . The stock traded as low as $16.94 and last traded at $16.95, with a volume of 3789332 shares. The stock had previously closed at $17.54.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. Wells Fargo & Company cut their target price on shares of FS KKR Capital from $18.00 to $15.00 and set an "underweight" rating on the stock in a research note on Friday, August 8th. Zacks Research upgraded shares of FS KKR Capital to a "strong sell" rating in a research note on Friday, August 8th. Keefe, Bruyette & Woods lowered their price target on shares of FS KKR Capital from $19.00 to $18.50 and set a "market perform" rating for the company in a report on Tuesday, August 12th. Royal Bank Of Canada decreased their target price on shares of FS KKR Capital from $21.00 to $18.00 and set a "sector perform" rating on the stock in a research report on Tuesday, August 26th. Finally, Wall Street Zen cut shares of FS KKR Capital from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Five analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, FS KKR Capital has a consensus rating of "Reduce" and a consensus price target of $18.42.

FS KKR Capital Stock Down 3.4%

The firm has a market cap of $4.75 billion, a price-to-earnings ratio of 21.73 and a beta of 0.95. The firm's fifty day moving average is $19.48 and its two-hundred day moving average is $20.25. The company has a debt-to-equity ratio of 1.31, a current ratio of 2.40 and a quick ratio of 2.40.

FS KKR Capital (NYSE:FSK - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported ($0.60) earnings per share for the quarter, missing analysts' consensus estimates of $0.63 by ($1.23). FS KKR Capital had a net margin of 13.24% and a return on equity of 6.24%. The business had revenue of $398.00 million during the quarter, compared to analyst estimates of $402.00 million. During the same period in the previous year, the company posted $0.75 earnings per share. On average, sell-side analysts expect that FS KKR Capital Corp. will post 2.89 EPS for the current fiscal year.

FS KKR Capital Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 2nd. Investors of record on Wednesday, September 17th will be issued a $0.70 dividend. This is an increase from FS KKR Capital's previous quarterly dividend of $0.64. This represents a $2.80 dividend on an annualized basis and a yield of 16.5%. The ex-dividend date is Wednesday, September 17th. FS KKR Capital's dividend payout ratio is currently 328.21%.

Institutional Investors Weigh In On FS KKR Capital

A number of large investors have recently added to or reduced their stakes in the stock. Mirae Asset Global Investments Co. Ltd. increased its stake in shares of FS KKR Capital by 35.8% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 28,920 shares of the company's stock valued at $607,000 after buying an additional 7,620 shares in the last quarter. Financial Gravity Asset Management Inc. bought a new position in FS KKR Capital during the first quarter worth about $6,383,000. Oppenheimer & Co. Inc. boosted its holdings in FS KKR Capital by 5.9% during the first quarter. Oppenheimer & Co. Inc. now owns 16,971 shares of the company's stock worth $356,000 after buying an additional 945 shares during the last quarter. BridgePort Financial Solutions LLC bought a new position in FS KKR Capital during the fourth quarter worth about $385,000. Finally, Wealth Enhancement Advisory Services LLC lifted its holdings in shares of FS KKR Capital by 11.0% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 129,330 shares of the company's stock valued at $2,809,000 after purchasing an additional 12,782 shares in the last quarter. Institutional investors own 36.26% of the company's stock.

FS KKR Capital Company Profile

FS KKR Capital Corp. is a business development company specializing in investments in debt securities. It provides customized credit solutions to private middle market U.S. companies. It invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market U.S.

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