FS KKR Capital (NYSE:FSK) Sets New 12-Month Low - Time to Sell?

Key Points

• FS KKR Capital's stock hit a new 52-week low at $15.48 amidst trading concerns, closing at $15.49 with a significant trading volume of over 2.9 million shares.
• Analyst ratings have turned negative, with several firms reducing their price targets and downgrading the stock to a "sell", leading to a consensus rating of "Reduce" and an average target price of $18.42.
• The company recently announced a dividend increase to $0.70 per share, reflecting an annualized yield of 18.2%, despite facing significant losses reported in their latest earnings.

FS KKR Capital Corp. (NYSE:FSK - Get Free Report) shares reached a new 52-week low on Monday . The company traded as low as $15.48 and last traded at $15.49, with a volume of 2933392 shares. The stock had previously closed at $15.86.

Analyst Ratings Changes

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

FS KKR Capital Stock Performance

The company has a current ratio of 2.40, a quick ratio of 2.40 and a debt-to-equity ratio of 1.31. The company's 50-day simple moving average is $18.93 and its 200-day simple moving average is $20.01.

FS KKR Capital (NYSE:FSK - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported ($0.60) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.63 by ($1.23). FS KKR Capital had a return on equity of 6.24% and a net margin of 13.24%.The firm had revenue of $398.00 million for the quarter, compared to the consensus estimate of $402.00 million. During the same period last year, the company posted $0.75 earnings per share. Equities research analysts anticipate that FS KKR Capital Corp. will post 2.89 EPS for the current year.

FS KKR Capital Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 2nd. Shareholders of record on Wednesday, September 17th will be given a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 18.4%. This is an increase 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 currently 328.21%.

Hedge Funds Weigh In On FS KKR Capital

Large investors have recently modified their holdings of the stock. Atlantic Union Bankshares Corp bought a new position in shares of FS KKR Capital in the second quarter valued at about $26,000. Beacon Capital Management Inc. bought a new position in shares of FS KKR Capital in the second quarter valued at about $26,000. Flaharty Asset Management LLC bought a new position in shares of FS KKR Capital in the first quarter valued at about $29,000. Trust Co. of Vermont raised its position in shares of FS KKR Capital by 51.0% in the second quarter. Trust Co. of Vermont now owns 1,525 shares of the company's stock valued at $32,000 after purchasing an additional 515 shares during the period. Finally, Caitong International Asset Management Co. Ltd bought a new position in shares of FS KKR Capital in the first quarter valued at about $34,000. 36.26% of the stock is owned by institutional investors.

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.