FS KKR Capital (NYSE:FSK) Reaches New 1-Year Low - Time to Sell?

Key Points

• FS KKR Capital's share price has reached a new 52-week low of $14.89, prompting analysts to reassess their ratings, with some downgrades to "sell."
• The company recently reported a quarterly earnings loss of ($0.60) per share, missing analysts' estimates and showing a decline from the previous year's earnings of $0.75 per share.
• FS KKR Capital also declared an increase in its quarterly dividend to $0.70 per share, which represents a significant annualized yield of 18.7% despite a high payout ratio of 328.21%.

FS KKR Capital Corp. (NYSE:FSK - Get Free Report)'s share price reached a new 52-week low on Wednesday . The company traded as low as $14.89 and last traded at $14.94, with a volume of 3273036 shares changing hands. The stock had previously closed at $14.98.

Wall Street Analyst Weigh In

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

FS KKR Capital Stock Down 0.3%

The business's fifty day moving average price is $18.08 and its 200 day moving average price is $19.75. The company has a market capitalization of $4.18 billion, a P/E ratio of 19.15 and a beta of 0.95. The company has a current ratio of 2.40, a quick ratio of 2.40 and a debt-to-equity ratio of 1.31.

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). The company had revenue of $398.00 million during the quarter, compared to analyst estimates of $402.00 million. FS KKR Capital had a net margin of 13.24% and a return on equity of 6.24%. During the same period in the prior year, the business earned $0.75 EPS. As a group, equities research analysts predict that FS KKR Capital Corp. will post 2.89 earnings per share for the current fiscal year.

FS KKR Capital Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 2nd. Investors of record on Wednesday, September 17th will be paid a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 18.7%. This is a positive change from FS KKR Capital's previous quarterly dividend of $0.64. The ex-dividend date of this dividend is Wednesday, September 17th. FS KKR Capital's payout ratio is presently 328.21%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Trust Co. of Vermont raised its position in FS KKR Capital by 51.0% during the second quarter. Trust Co. of Vermont now owns 1,525 shares of the company's stock worth $32,000 after acquiring an additional 515 shares in the last quarter. Kathmere Capital Management LLC raised its position in FS KKR Capital by 1.4% during the first quarter. Kathmere Capital Management LLC now owns 41,258 shares of the company's stock worth $864,000 after acquiring an additional 562 shares in the last quarter. CFO4Life Group LLC raised its position in FS KKR Capital by 3.0% during the second quarter. CFO4Life Group LLC now owns 20,081 shares of the company's stock worth $417,000 after acquiring an additional 578 shares in the last quarter. West Michigan Advisors LLC raised its position in FS KKR Capital by 1.5% during the second quarter. West Michigan Advisors LLC now owns 41,194 shares of the company's stock worth $884,000 after acquiring an additional 591 shares in the last quarter. Finally, Transce3nd LLC raised its position in FS KKR Capital by 3.5% during the second quarter. Transce3nd LLC now owns 17,426 shares of the company's stock worth $362,000 after acquiring an additional 591 shares in the last quarter. Institutional investors and hedge funds own 36.26% of the company's stock.

About FS KKR Capital

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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