FS KKR Capital (NYSE:FSK) Shares Gap Down - Here's What Happened

Key Points

• FS KKR Capital shares fell 4.0%, opening at $11.56 after closing at $12.00. The stock’s consensus analyst rating is “Reduce,” with an average price target of $11.43.
• The company reported quarterly EPS of $0.43, slightly beating expectations of $0.42, while revenue totaled $290 million versus the $286.75 million consensus estimate.
• FS KKR Capital increased its quarterly dividend to $0.44 per share, implying an annualized dividend of $1.76 and a yield of approximately 15.3%.

Shares of FS KKR Capital Corp. (NYSE:FSK - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $12.00, but opened at $11.56. FS KKR Capital shares last traded at $11.5350, with a volume of 149,944 shares.

Analysts Set New Price Targets

Several equities analysts have issued reports on the company. Zacks Research raised 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 upgraded shares of FS KKR Capital from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. Royal Bank Of Canada reissued a "sector perform" rating and set a $13.00 target price (up from $11.00) on shares of FS KKR Capital in a research note on Wednesday, August 12th. Finally, JPMorgan Chase & Co. raised their price target on shares of FS KKR Capital from $9.50 to $11.00 and gave the stock a "neutral" rating in a report on Wednesday, August 19th. Seven equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, FS KKR Capital presently has an average rating of "Reduce" and a consensus target price of $11.43.

FS KKR Capital Trading Down 4.0%

The firm has a fifty day simple moving average of $11.61 and a 200-day simple moving average of $10.98. The firm has a market cap of $3.18 billion, a P/E ratio of -8.54 and a beta of 0.83. 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 released its quarterly earnings data on Thursday, August 6th. The company reported $0.43 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 firm had revenue of $290.00 million during the quarter, compared to the consensus estimate of $286.75 million. During the same quarter in the previous year, the company posted ($0.75) earnings per share. On average, equities research analysts expect that FS KKR Capital Corp. will post 1.64 earnings per share for the current year.

FS KKR Capital Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 2nd. Shareholders of record on Wednesday, September 16th will be issued a dividend of $0.44 per share. The ex-dividend date is Wednesday, September 16th. This is a positive change from FS KKR Capital's previous quarterly dividend of $0.42. This represents a $1.76 annualized dividend and a yield of 15.3%. FS KKR Capital's dividend payout ratio is currently -124.44%.

Institutional Investors Weigh In On FS KKR Capital

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Saba Capital Management L.P. purchased a new position in FS KKR Capital during the first quarter worth about $35,729,000. Legal & General Group Plc purchased a new stake in FS KKR Capital in the 2nd quarter valued at about $28,742,000. Silver Point Capital L.P. purchased a new stake in FS KKR Capital in the 2nd quarter valued at about $28,602,000. Cura Wealth Advisors LLC bought a new position in shares of FS KKR Capital during the 2nd quarter worth approximately $22,391,000. Finally, Rivernorth Capital Management LLC lifted its position in shares of FS KKR Capital by 580.7% during the 1st quarter. Rivernorth Capital Management LLC now owns 2,097,170 shares of the company's stock worth $21,349,000 after buying an additional 1,789,090 shares in the last quarter. 36.26% of the stock is owned by institutional investors.

About FS KKR Capital

FS KKR Capital Corp. NYSE: FSK is a business development company that provides financing to private middle-market companies, primarily in the United States. The company seeks to support businesses across a range of industries by investing in senior secured loans, subordinated debt and, to a lesser extent, equity securities.

FSK's portfolio is generally focused on established companies with annual revenues and earnings that may require capital for acquisitions, recapitalizations, growth initiatives, refinancings and other corporate purposes.

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