FS KKR Capital (NYSE:FSK) Sets New 12-Month Low - Here's Why

Key Points

• FS KKR Capital's stock reached a new 52-week low at $14.66, with significant trading volume of over 3.5 million shares.
• Analysts have revised their price targets, with Wells Fargo upgrading to $15.00 and Zacks Research issuing a "strong sell" rating, leading to a consensus target price of $17.75.
• The company recently announced an increased quarterly dividend of $0.70 per share, resulting in a substantial annual yield of 19.1% despite a high dividend payout ratio of 328.21%.

FS KKR Capital Corp. (NYSE:FSK - Get Free Report)'s stock price reached a new 52-week low on Tuesday . The stock traded as low as $14.66 and last traded at $14.69, with a volume of 3573689 shares changing hands. The stock had previously closed at $14.96.

Analysts Set New Price Targets

Several research firms recently commented on FSK. Wells Fargo & Company upgraded shares of FS KKR Capital from an "underweight" rating to an "equal weight" rating and set a $15.00 price target for the company in a report on Monday. Zacks Research upgraded shares of FS KKR Capital to a "strong sell" rating in a research report on Friday, August 8th. 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 for the company in a research note on Tuesday, August 26th. JPMorgan Chase & Co. lowered their price target on shares of FS KKR Capital from $18.00 to $15.00 and set a "neutral" rating on the stock in a report on Wednesday, October 1st. Finally, Keefe, Bruyette & Woods cut their price objective on 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. Seven analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, FS KKR Capital presently has an average rating of "Reduce" and a consensus target price of $17.75.

FS KKR Capital Price Performance

The company has a quick ratio of 2.40, a current ratio of 2.40 and a debt-to-equity ratio of 1.31. The company has a market capitalization of $4.11 billion, a P/E ratio of 18.83 and a beta of 0.94. The company's 50-day simple moving average is $17.50 and its 200 day simple moving average is $19.58.

FS KKR Capital (NYSE:FSK - Get Free Report) last released 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 for the quarter, compared to the consensus estimate of $402.00 million. During the same quarter in the prior year, the business posted $0.75 EPS. As a group, sell-side analysts expect that FS KKR Capital Corp. will post 2.89 earnings per share for the current fiscal year.

FS KKR Capital Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, October 2nd. Shareholders of record on Wednesday, September 17th were issued a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 19.1%. This is an increase from FS KKR Capital's previous quarterly dividend of $0.64. The ex-dividend date was Wednesday, September 17th. FS KKR Capital's dividend payout ratio is 328.21%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Commonwealth Equity Services LLC raised its stake in shares of FS KKR Capital by 0.7% in the 2nd quarter. Commonwealth Equity Services LLC now owns 4,313,907 shares of the company's stock valued at $89,514,000 after acquiring an additional 28,619 shares in the last quarter. LPL Financial LLC grew its holdings in FS KKR Capital by 2.8% during the first quarter. LPL Financial LLC now owns 3,682,289 shares of the company's stock valued at $77,144,000 after purchasing an additional 98,647 shares during the last quarter. Generali Asset Management SPA SGR grew its holdings in FS KKR Capital by 21.7% during the second quarter. Generali Asset Management SPA SGR now owns 2,485,265 shares of the company's stock valued at $51,569,000 after purchasing an additional 442,374 shares during the last quarter. Legal & General Group Plc raised its position in shares of FS KKR Capital by 3.2% in the second quarter. Legal & General Group Plc now owns 2,147,309 shares of the company's stock valued at $44,546,000 after purchasing an additional 66,943 shares during the period. Finally, Cura Wealth Advisors LLC lifted its stake in shares of FS KKR Capital by 1.1% in the first quarter. Cura Wealth Advisors LLC now owns 1,784,604 shares of the company's stock worth $37,387,000 after buying an additional 19,367 shares during the last quarter. Institutional investors and hedge funds 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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