FS KKR Capital (NYSE:FSK) Price Target Cut to $10.00 by Analysts at Wells Fargo & Company

Key Points

• Wells Fargo cut its price target on FS KKR Capital from $11.00 to $10.00 and kept an equal weight rating, implying about 5.66% downside from the current share price.
• Other analysts have also turned cautious, with multiple recent target cuts and rating downgrades. The stock now carries a consensus view of "Reduce" and an average price target of $10.92.
• FS KKR Capital’s latest quarterly results were weak, with EPS of $0.41 missing estimates and revenue also falling short. The company also posted a year-over-year decline in revenue, adding to concerns about operating performance.

FS KKR Capital (NYSE:FSK - Get Free Report) had its target price dropped by analysts at Wells Fargo & Company from $11.00 to $10.00 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Wells Fargo & Company's target price points to a potential downside of 5.66% from the stock's current price.

Several other equities analysts also recently weighed in on the stock. Zacks Research raised shares of FS KKR Capital from a "strong sell" rating to a "hold" rating in a research note on Monday, May 4th. Keefe, Bruyette & Woods dropped their price objective on shares of FS KKR Capital from $15.00 to $11.00 and set a "market perform" rating for the company in a research note on Thursday, April 16th. 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. Truist Financial lowered their target price on FS KKR Capital from $17.00 to $11.00 and set a "hold" rating on the stock in a report on Wednesday, March 4th. Finally, JPMorgan Chase & Co. dropped their price target on FS KKR Capital from $13.00 to $9.50 and set a "neutral" rating for the company in a research report on Friday, March 13th. Seven analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Reduce" and a consensus target price of $10.92.

FS KKR Capital Stock Performance

Shares of NYSE:FSK opened at $10.60 on Tuesday. The company has a debt-to-equity ratio of 1.31, a current ratio of 3.05 and a quick ratio of 3.05. FS KKR Capital has a 1 year low of $9.72 and a 1 year high of $22.68. The firm has a market capitalization of $2.97 billion, a PE ratio of 353.33 and a beta of 0.85. The business's 50 day moving average price is $10.60 and its 200-day moving average price is $13.21.

FS KKR Capital (NYSE:FSK - Get Free Report) last posted its quarterly earnings data on Monday, May 11th. The company reported $0.41 EPS for the quarter, missing the consensus estimate of $0.44 by ($0.03). FS KKR Capital had a net margin of 0.72% and a return on equity of 5.21%. The firm had revenue of $304.00 million during the quarter, compared to analyst estimates of $316.81 million. During the same period in the prior year, the company posted $0.65 earnings per share. The firm's revenue for the quarter was down 24.0% compared to the same quarter last year. As a group, equities research analysts expect that FS KKR Capital will post 1.7 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Daniel Pietrzak acquired 5,000 shares of FS KKR Capital stock in a transaction that occurred on Friday, February 27th. The shares were purchased at an average cost of $11.25 per share, for a total transaction of $56,250.00. Following the acquisition, the insider owned 64,800 shares in the company, valued at approximately $729,000. This represents a 8.36% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Insiders own 0.25% of the company's stock.

Institutional Investors Weigh In On FS KKR Capital

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

Key FS KKR Capital News

Here are the key news stories impacting FS KKR Capital this week:

• Negative Sentiment: FS KKR reported Q1 2026 earnings of $0.41 per share, below estimates of $0.44, with revenue of $304 million also missing expectations. Results were down sharply from a year ago, reinforcing concerns about operating weakness. Article Title
• Negative Sentiment: The company also cut its quarterly distribution to $0.42 per share, which likely disappointed income-focused investors and signals management sees added pressure on cash generation and portfolio performance. Article Title
• Negative Sentiment: JPMorgan-led lenders reduced FS KKR’s credit facility by about $648 million and increased borrowing costs, adding to concerns about financing flexibility and the health of the business development company’s balance sheet. Article Title
• Negative Sentiment: KKR announced a $300 million support package and a tender offer for up to $150 million of FSK common stock, which suggests the sponsor is stepping in to stabilize the situation after disappointing results. Article Title
• Neutral Sentiment: Multiple law firms have announced or reminded investors about a securities class action and lead-plaintiff deadlines. These headlines add overhang, but they are not likely to change fundamentals immediately. Article Title

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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