FS KKR Capital Sees Unusually Large Options Volume (NYSE:FSK)

Key Points

• Unusual options activity: Investors purchased 2,732 put options on FS KKR Capital, 217% above its typical volume of 862 contracts, suggesting heightened downside hedging or bearish interest.
• Mixed financial picture: FSK shares rose 0.8% to $10.88, while the company exceeded quarterly EPS and revenue estimates. However, it reported a negative net margin and analysts maintain a consensus “Reduce” rating with an average $11.43 price target.
• Dividend and ownership updates: FS KKR Capital announced a $0.20 special dividend payable December 24, and institutional investors own 36.26% of the company after several funds increased their positions.

FS KKR Capital Corp. (NYSE:FSK - Get Free Report) was the target of some unusual options trading on Friday. Investors bought 2,732 put options on the stock. This is an increase of 217% compared to the typical volume of 862 put options.

FS KKR Capital Stock Up 0.8%

FSK stock traded up $0.09 during mid-day trading on Friday, hitting $10.88. The stock had a trading volume of 463,475 shares, compared to its average volume of 3,038,422. FS KKR Capital has a 1-year low of $9.72 and a 1-year high of $16.31. The company has a fifty day moving average of $11.73 and a 200 day moving average of $11.05. The company has a current ratio of 2.28, a quick ratio of 2.28 and a debt-to-equity ratio of 1.26. The stock has a market capitalization of $3.01 billion, a price-to-earnings ratio of -8.05 and a beta of 0.86.

FS KKR Capital (NYSE:FSK - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.42 by $0.01. FS KKR Capital had a positive return on equity of 9.70% and a negative net margin of 28.52%.The business had revenue of $290.00 million during the quarter, compared to analyst estimates of $286.75 million. During the same period in the previous year, the company earned ($0.75) EPS. On average, equities analysts expect that FS KKR Capital will post 1.64 EPS for the current fiscal year.

FS KKR Capital Announces Dividend

The firm also recently announced a special dividend, which will be paid on Thursday, December 24th. Shareholders of record on Wednesday, December 16th will be given a $0.20 dividend. This represents a yield of 1,633.0%. The ex-dividend date of this dividend is Wednesday, December 16th. FS KKR Capital's payout ratio is currently -130.37%.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on FSK. Zacks Research raised shares of FS KKR Capital from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 11th. JPMorgan Chase & Co. boosted their target price on shares of FS KKR Capital from $9.50 to $11.00 and gave the company a "neutral" rating in a research note on Wednesday, August 19th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $13.00 target price (up from $11.00) on shares of FS KKR Capital in a research report on Wednesday, August 12th. Truist Financial upped their price target on FS KKR Capital from $11.00 to $12.00 and gave the company a "hold" rating in a research report on Friday, August 7th. Finally, Wall Street Zen raised FS KKR Capital from a "sell" rating to a "hold" rating in a research note on Saturday, August 1st. Six research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, FS KKR Capital has a consensus rating of "Reduce" and an average price target of $11.43.

Institutional Investors Weigh In On FS KKR Capital

Several institutional investors and hedge funds have recently modified their holdings of FSK. Beacon Financial Advisory LLC raised its holdings in shares of FS KKR Capital by 1.7% in the 2nd quarter. Beacon Financial Advisory LLC now owns 61,266 shares of the company's stock worth $643,000 after buying an additional 1,000 shares in the last quarter. Rockport Wealth LLC boosted its stake in FS KKR Capital by 9.8% in the 1st quarter. Rockport Wealth LLC now owns 11,367 shares of the company's stock valued at $116,000 after buying an additional 1,018 shares in the last quarter. Wescott Financial Advisory Group LLC grew its position in FS KKR Capital by 3.9% in the fourth quarter. Wescott Financial Advisory Group LLC now owns 28,412 shares of the company's stock valued at $421,000 after acquiring an additional 1,079 shares during the period. Triumph Capital Management grew its position in FS KKR Capital by 98.1% in the second quarter. Triumph Capital Management now owns 2,575 shares of the company's stock valued at $27,000 after acquiring an additional 1,275 shares during the period. Finally, Allworth Financial LP raised its stake in FS KKR Capital by 8.9% during the second quarter. Allworth Financial LP now owns 16,700 shares of the company's stock worth $175,000 after acquiring an additional 1,369 shares in the last quarter. Institutional investors and hedge funds own 36.26% of the company's stock.

About FS KKR Capital

FS KKR Capital Corp. NYSE: FSK is a business development company that provides financing to privately owned middle-market companies. The company primarily invests in senior secured loans, including first-lien and second-lien debt, and may also make select equity investments. Its portfolio companies operate across a range of industries and are generally located in the United States.

FSK seeks to generate income and long-term capital appreciation by partnering with companies that require financing for acquisitions, recapitalizations, growth initiatives, refinancing and other corporate purposes.

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