FS KKR Capital (NYSE:FSK) Rating Increased to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded FS KKR Capital from “sell” to “hold,” though the broader analyst consensus remains “Reduce,” with six Hold ratings and two Sell ratings and an average price target of $10.58.
• FSK shares opened at $10.56, near their 52-week low of $9.72 and below both their 50-day and 200-day moving averages. Analysts have recently lowered price targets, including Wells Fargo’s reduction to $10 and Keefe, Bruyette & Woods’ cut to $11.
• The company missed quarterly expectations, reporting $0.41 in EPS versus the $0.44 consensus and $304 million in revenue versus $316.81 million expected; revenue declined 24% year over year.

FS KKR Capital (NYSE:FSK - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

Several other analysts also recently weighed in on the stock. Keefe, Bruyette & Woods dropped their target price on shares of FS KKR Capital from $15.00 to $11.00 and set a "market perform" rating on the stock in a research report on Thursday, April 16th. Royal Bank Of Canada reissued a "sector perform" rating and set a $11.00 price objective on shares of FS KKR Capital in a report on Tuesday, May 12th. Weiss Ratings restated a "sell (d+)" rating on shares of FS KKR Capital in a research note on Tuesday, June 2nd. Zacks Research downgraded FS KKR Capital from a "hold" rating to a "strong sell" rating in a research note on Monday, July 13th. Finally, Wells Fargo & Company cut their price objective on FS KKR Capital from $11.00 to $10.00 and set an "equal weight" rating on the stock in a report on Tuesday, May 12th. Six research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, FS KKR Capital presently has a consensus rating of "Reduce" and an average price target of $10.58.

FS KKR Capital Stock Up 0.0%

FS KKR Capital stock opened at $10.56 on Friday. FS KKR Capital has a 1-year low of $9.72 and a 1-year high of $21.34. The business has a fifty day moving average price of $10.68 and a 200-day moving average price of $11.37. The company has a debt-to-equity ratio of 1.38, a current ratio of 2.00 and a quick ratio of 2.00. The stock has a market capitalization of $2.96 billion, a price-to-earnings ratio of -5.36 and a beta of 0.82.

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

Hedge Funds Weigh In On FS KKR Capital

A number of large investors have recently bought and sold shares of FSK. Titan Investment Management LLC purchased a new stake in shares of FS KKR Capital during the fourth quarter worth $1,863,000. UBS Group AG lifted its stake in shares of FS KKR Capital by 15.3% in the fourth quarter. UBS Group AG now owns 3,806,076 shares of the company's stock worth $56,368,000 after buying an additional 505,982 shares in the last quarter. Legacy Capital Group California Inc. boosted its position in FS KKR Capital by 48.8% during the fourth quarter. Legacy Capital Group California Inc. now owns 313,615 shares of the company's stock worth $4,645,000 after acquiring an additional 102,864 shares during the last quarter. Legal & General Group Plc boosted its position in FS KKR Capital by 15.3% during the fourth quarter. Legal & General Group Plc now owns 2,296,070 shares of the company's stock worth $33,993,000 after acquiring an additional 304,556 shares during the last quarter. Finally, Marble Wealth LLC purchased a new stake in FS KKR Capital during the 4th quarter valued at about $1,567,000. 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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