FS KKR Capital (NYSE:FSK) Share Price Crosses Above 200 Day Moving Average - Here's Why

Key Points

• FS KKR Capital shares crossed above their 200-day moving average, reaching $11.45 and last trading around $11.44, with roughly 2.9 million shares changing hands.
• Analyst sentiment remains cautious: six analysts rate the stock “Hold” and two rate it “Sell,” producing an average “Reduce” rating and a consensus price target of $11.43.
• The company reported quarterly EPS of $0.43, slightly ahead of estimates, and announced a $0.20 special dividend payable December 15 to shareholders of record December 1.

FS KKR Capital Corp. (NYSE:FSK - Get Free Report)'s stock price passed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $11.36 and traded as high as $11.45. FS KKR Capital shares last traded at $11.4350, with a volume of 2,895,121 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. JPMorgan Chase & Co. upped their target price on FS KKR Capital from $9.50 to $11.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 19th. Zacks Research upgraded FS KKR Capital from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 11th. Weiss Ratings reiterated a "sell (d+)" rating on shares of FS KKR Capital in a research note on Friday, August 28th. Wall Street Zen raised FS KKR Capital from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. Finally, Wells Fargo & Company downgraded FS KKR Capital from a "sector perform" rating to an "underweight" rating and set a $10.00 price objective for the company. in a research report on Tuesday, September 29th. Six investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus target price of $11.43.

FS KKR Capital Price Performance

The business's 50-day simple moving average is $11.30 and its two-hundred day simple moving average is $11.36. The stock has a market cap of $3.16 billion, a price-to-earnings ratio of -8.47 and a beta of 0.86. The company has a debt-to-equity ratio of 1.26, a current ratio of 2.28 and a quick ratio of 2.28.

FS KKR Capital (NYSE:FSK - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.43 EPS for the quarter, beating analysts' consensus estimates 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 company had revenue of $290.00 million during the quarter, compared to analysts' expectations of $286.75 million. During the same period in the prior year, the company earned ($0.75) EPS. Research analysts expect that FS KKR Capital Corp. will post 1.64 earnings per share for the current year.

FS KKR Capital Dividend Announcement

The company also recently announced a special dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be issued a $0.20 dividend. The ex-dividend date of this dividend is Tuesday, December 1st. FS KKR Capital's dividend payout ratio is presently -130.37%.

Institutional Trading of FS KKR Capital

A number of hedge funds have recently made changes to their positions in the company. Triumph Capital Management increased its stake in shares of 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 buying an additional 1,275 shares during the period. Harborfront Financial Group LLC acquired a new position in shares of FS KKR Capital in the second quarter worth approximately $30,000. Northwestern Mutual Wealth Management Co. acquired a new position in shares of FS KKR Capital in the second quarter worth approximately $53,000. Fifth Third Bancorp acquired a new position in shares of FS KKR Capital in the first quarter worth approximately $65,000. Finally, Continuum Advisory LLC bought a new stake in FS KKR Capital in the second quarter valued at approximately $76,000. 36.26% of the stock is owned by institutional investors and hedge funds.

FS KKR Capital Company Profile

FS KKR Capital Corp. NYSE: FSK is a business development company (BDC) that provides financing to private middle-market companies. The company primarily invests in senior secured loans and other debt instruments, while also making select equity investments. Its portfolio companies generally operate across a range of industries and are typically based in the United States.

FSK is externally managed by FS/KKR Advisor, LLC, a joint venture between FS Investments and KKR. The adviser combines FS Investments' experience in serving individual and institutional investors with KKR's global investment platform and private credit capabilities.

The company traces its history to FS Investment Corporation and Corporate Capital Trust, which combined in 2018 to create FS KKR Capital Corp.

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