FS KKR Capital (NYSE:FSK) Sets New 52-Week Low - What's Next?

Key Points

• FS KKR hit a new 52-week low — shares traded as low as $10.16 (last $10.4540) on heavy volume, below both the 50‑day and 200‑day moving averages and with a market cap around $2.93 billion.
• Analysts are turning negative — multiple downgrades and lower price targets (e.g., KBW to $15, Wells Fargo to $11) leave a MarketBeat consensus rating of “Reduce” with a $14.14 target.
• Quarterly results disappointed — the company missed EPS ($0.52 vs. $0.55) and revenue estimates, reported weak margins/ROE, announced a $0.03 special dividend, and saw an insider buy 5,000 shares.

FS KKR Capital Corp. (NYSE:FSK - Get Free Report)'s share price reached a new 52-week low on Wednesday . The stock traded as low as $10.16 and last traded at $10.4540, with a volume of 5669426 shares changing hands. The stock had previously closed at $10.56.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on FSK. Keefe, Bruyette & Woods lowered their price objective on shares of FS KKR Capital from $18.00 to $15.00 and set a "market perform" rating for the company in a research report on Monday, March 2nd. Zacks Research lowered FS KKR Capital from a "hold" rating to a "strong sell" rating in a research note on Monday, March 2nd. Wall Street Zen cut FS KKR Capital from a "hold" rating to a "sell" rating in a report on Saturday, February 28th. Weiss Ratings downgraded FS KKR Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, March 5th. Finally, Wells Fargo & Company reduced their price objective on FS KKR Capital from $15.00 to $11.00 and set an "equal weight" rating on the stock in a research note on Friday, February 27th. Seven equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus target price of $14.14.

FS KKR Capital Stock Performance

The company has a fifty day moving average price of $13.29 and a 200 day moving average price of $14.84. The company has a debt-to-equity ratio of 1.31, a current ratio of 3.05 and a quick ratio of 3.05. The stock has a market cap of $2.93 billion, a P/E ratio of 348.47 and a beta of 0.86.

FS KKR Capital (NYSE:FSK - Get Free Report) last issued its quarterly earnings data on Wednesday, February 25th. The company reported $0.52 earnings per share for the quarter, missing the consensus estimate of $0.55 by ($0.03). The company had revenue of $348.00 million for the quarter, compared to the consensus estimate of $361.59 million. FS KKR Capital had a net margin of 0.72% and a return on equity of 5.21%. During the same quarter last year, the business posted $0.66 earnings per share. On average, equities analysts expect that FS KKR Capital Corp. will post 2.89 EPS for the current year.

FS KKR Capital Dividend Announcement

The business also recently declared a special dividend, which will be paid on Thursday, April 2nd. Investors of record on Wednesday, March 18th will be issued a $0.03 dividend. This represents a dividend yield of 1,595.0%. The ex-dividend date of this dividend is Wednesday, March 18th. FS KKR Capital's payout ratio is 6,000.00%.

Insiders Place Their Bets

In related news, insider Daniel Pietrzak bought 5,000 shares of the company's stock in a transaction on Friday, February 27th. The shares were purchased at an average price of $11.25 per share, for a total transaction of $56,250.00. Following the completion of the transaction, the insider directly owned 64,800 shares in the company, valued at approximately $729,000. The trade was a 8.36% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 0.18% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On FS KKR Capital

A number of institutional investors have recently added to or reduced their stakes in FSK. Atlantic Union Bankshares Corp bought a new stake in FS KKR Capital in the second quarter worth $26,000. Beacon Capital Management Inc. purchased a new position in shares of FS KKR Capital in the second quarter worth about $26,000. Thurston Springer Miller Herd & Titak Inc. bought a new stake in shares of FS KKR Capital in the 4th quarter valued at about $26,000. Jessup Wealth Management Inc purchased a new stake in FS KKR Capital during the 4th quarter valued at about $26,000. Finally, FNY Investment Advisers LLC bought a new position in FS KKR Capital during the 4th quarter worth approximately $28,000. 36.26% of the stock is currently owned by institutional investors.

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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