FS KKR Capital (NYSE:FSK) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

Key Points

• JPMorgan raised FS KKR Capital’s price target from $9.50 to $11.00 while maintaining a “neutral” rating, implying 8.75% downside from the prior close.
• Analyst sentiment remains cautious: seven analysts rate the stock “Hold” and one rates it “Sell,” resulting in a consensus “Reduce” rating and an average price target of $11.43.
• FSK shares rose 1.2% to $12.05, while the company reported quarterly earnings of $0.43 per share and revenue of $290 million, slightly exceeding analyst expectations.

FS KKR Capital (NYSE:FSK - Get Free Report) had its price target boosted by JPMorgan Chase & Co. from $9.50 to $11.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s target price suggests a potential downside of 8.75% from the stock's previous close.

FSK has been the topic of several other research reports. Zacks Research raised FS KKR Capital from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 11th. Capital One Financial set a $12.00 target price on FS KKR Capital in a report on Friday, August 7th. Wall Street Zen raised FS KKR Capital from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. Royal Bank Of Canada restated a "sector perform" rating and set a $13.00 price target (up from $11.00) on shares of FS KKR Capital in a research note on Wednesday, August 12th. Finally, Wells Fargo & Company cut their price target on FS KKR Capital from $11.00 to $10.00 and set an "equal weight" rating on the stock in a research report on Tuesday, May 12th. Seven research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and an average price target of $11.43.

FS KKR Capital Stock Up 1.2%

FS KKR Capital stock traded up $0.14 during mid-day trading on Wednesday, hitting $12.05. The company had a trading volume of 1,371,144 shares, compared to its average volume of 3,337,504. The stock has a market cap of $3.33 billion, a price-to-earnings ratio of -8.93 and a beta of 0.83. FS KKR Capital has a 1 year low of $9.72 and a 1 year high of $18.25. The company has a quick ratio of 2.28, a current ratio of 2.28 and a debt-to-equity ratio of 1.26. The business has a fifty day moving average of $10.94 and a 200 day moving average of $11.14.

FS KKR Capital (NYSE:FSK - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.43 earnings per share for the quarter, topping analysts' consensus estimates of $0.42 by $0.01. The company had revenue of $290.00 million for the quarter, compared to analysts' expectations of $286.75 million. FS KKR Capital had a negative net margin of 28.52% and a positive return on equity of 9.70%. During the same quarter last year, the company earned ($0.75) earnings per share. On average, sell-side analysts expect that FS KKR Capital will post 1.64 earnings per share for the current fiscal year.

Hedge Funds Weigh In On FS KKR Capital

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. lifted its position in FS KKR Capital by 55,074.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 7,741,004 shares of the company's stock worth $114,644,000 after acquiring an additional 7,726,974 shares during the period. Van ECK Associates Corp raised its stake in shares of FS KKR Capital by 2.4% during the fourth quarter. Van ECK Associates Corp now owns 4,083,940 shares of the company's stock worth $60,484,000 after purchasing an additional 94,262 shares during the last quarter. UBS Group AG lifted its holdings in shares of FS KKR Capital by 15.3% during the fourth quarter. UBS Group AG now owns 3,806,076 shares of the company's stock worth $56,368,000 after purchasing an additional 505,982 shares during the period. Saba Capital Management L.P. acquired a new stake in shares of FS KKR Capital during the first quarter worth $35,729,000. Finally, Legal & General Group Plc purchased a new position in FS KKR Capital in the 2nd quarter valued at $28,742,000. Hedge funds and other institutional investors own 36.26% of the company's stock.

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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