Keefe, Bruyette & Woods Issues Pessimistic Forecast for FS KKR Capital (NYSE:FSK) Stock Price

Key Points

• Keefe, Bruyette & Woods cut its price target on FS KKR Capital from $15 to $11 while maintaining a "market perform" rating, and multiple brokers have lowered targets leading to a MarketBeat consensus of Reduce with an average target of $12.50.
• FSK's latest quarter missed estimates (EPS $0.52 vs. $0.55 expected; revenue $348M vs. $361.6M expected), and the stock is trading near $11.13 — close to its 12‑month low and below the $13.65 200‑day moving average.
• Insider Daniel Pietrzak purchased 5,000 shares at about $11.25, increasing his stake, and institutional investors own roughly 36.3% of the company.

FS KKR Capital (NYSE:FSK - Get Free Report) had its price objective cut by Keefe, Bruyette & Woods from $15.00 to $11.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has a "market perform" rating on the stock. Keefe, Bruyette & Woods' target price suggests a potential downside of 1.14% from the company's previous close.

Several other equities research analysts also recently issued reports on FSK. Wall Street Zen downgraded FS KKR Capital from a "hold" rating to a "sell" rating in a research report on Saturday, February 28th. Truist Financial dropped their target price on FS KKR Capital from $17.00 to $11.00 and set a "hold" rating on the stock in a research report on Wednesday, March 4th. JPMorgan Chase & Co. dropped their target price on FS KKR Capital from $13.00 to $9.50 and set a "neutral" rating on the stock in a research report on Friday, March 13th. Zacks Research cut FS KKR Capital from a "hold" rating to a "strong sell" rating in a research report on Monday, March 2nd. Finally, Royal Bank Of Canada decreased their price target on FS KKR Capital from $15.00 to $13.00 and set a "sector perform" rating on the stock in a research report on Monday, April 6th. Seven analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average price target of $12.50.

FS KKR Capital Price Performance

Shares of NYSE:FSK opened at $11.13 on Thursday. The company has a quick ratio of 3.05, a current ratio of 3.05 and a debt-to-equity ratio of 1.31. The firm has a market capitalization of $3.12 billion, a PE ratio of 370.90 and a beta of 0.83. FS KKR Capital has a twelve month low of $9.72 and a twelve month high of $22.68. The company has a 50-day moving average price of $11.28 and a two-hundred day moving average price of $13.65.

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

Insider Activity at FS KKR Capital

In other news, insider Daniel Pietrzak purchased 5,000 shares of FS KKR Capital stock in a transaction dated Friday, February 27th. The stock was purchased at an average cost of $11.25 per share, for a total transaction of $56,250.00. Following the transaction, the insider directly owned 64,800 shares of the company's stock, valued at approximately $729,000. This trade represents a 8.36% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.18% of the stock is owned by company insiders.

Institutional Trading of FS KKR Capital

A number of large investors have recently modified their holdings of FSK. Bison Wealth LLC boosted its position in shares of FS KKR Capital by 3.4% during the 4th quarter. Bison Wealth LLC now owns 21,935 shares of the company's stock valued at $476,000 after acquiring an additional 720 shares during the last quarter. Goldman Sachs Group Inc. raised its position in shares of FS KKR Capital by 13.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 267,890 shares of the company's stock valued at $5,612,000 after buying an additional 32,258 shares in the last quarter. Empowered Funds LLC raised its position in shares of FS KKR Capital by 139.9% during the 1st quarter. Empowered Funds LLC now owns 26,744 shares of the company's stock valued at $560,000 after buying an additional 15,596 shares in the last quarter. Marshall Wace LLP purchased a new stake in shares of FS KKR Capital during the 2nd quarter valued at $1,806,000. Finally, Nebula Research & Development LLC raised its position in shares of FS KKR Capital by 83.1% during the 2nd quarter. Nebula Research & Development LLC now owns 20,236 shares of the company's stock valued at $420,000 after buying an additional 9,183 shares in the last quarter. Institutional investors own 36.26% of the company's stock.

FS KKR Capital Company Profile

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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