Royal Bank Of Canada Cuts FS KKR Capital (NYSE:FSK) Price Target to $13.00

Key Points

• Royal Bank of Canada cut its price target on FS KKR Capital from $15.00 to $13.00 and maintained a "sector perform" rating, implying roughly a 22% upside from the stock's current price (~$10.65).
• Multiple brokers have lowered targets recently (JPMorgan to $9.50, Truist/Wells Fargo/B. Riley to around $11), leaving the consensus analyst rating at "Reduce" with an average price target of about $13.07.
• FSK traded at $10.65 (up 1.3%) with a 52-week range of $9.72–$22.68; the company missed quarterly EPS and revenue estimates and saw an insider purchase of 5,000 shares.

FS KKR Capital (NYSE:FSK - Get Free Report) had its price objective cut by equities research analysts at Royal Bank Of Canada from $15.00 to $13.00 in a research note issued on Monday,Benzinga reports. The firm currently has a "sector perform" rating on the stock. Royal Bank Of Canada's target price would suggest a potential upside of 22.12% from the stock's current price.

A number of other brokerages have also issued reports on FSK. JPMorgan Chase & Co. dropped their price objective on shares of FS KKR Capital from $13.00 to $9.50 and set a "neutral" rating for the company in a report on Friday, March 13th. Truist Financial reduced their target price on shares of FS KKR Capital from $17.00 to $11.00 and set a "hold" rating on the stock in a research note on Wednesday, March 4th. Zacks Research lowered shares of FS KKR Capital from a "hold" rating to a "strong sell" rating in a report on Monday, March 2nd. Wells Fargo & Company cut their price target on shares of FS KKR Capital from $15.00 to $11.00 and set an "equal weight" rating for the company in a report on Friday, February 27th. Finally, B. Riley Financial reduced their price target on shares of FS KKR Capital from $17.50 to $11.00 and set a "neutral" rating on the stock in a research report on Tuesday, March 3rd. Seven investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Reduce" and a consensus price target of $13.07.

FS KKR Capital Trading Up 1.3%

FS KKR Capital stock traded up $0.14 during trading on Monday, reaching $10.65. 384,182 shares of the company were exchanged, compared to its average volume of 3,817,969. FS KKR Capital has a 52-week low of $9.72 and a 52-week high of $22.68. The company has a market capitalization of $2.98 billion, a P/E ratio of 355.03 and a beta of 0.83. The company has a debt-to-equity ratio of 1.31, a current ratio of 3.05 and a quick ratio of 3.05. The stock's 50 day simple moving average is $11.80 and its two-hundred day simple moving average is $13.92.

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 (EPS) for the quarter, missing the consensus estimate of $0.55 by ($0.03). FS KKR Capital had a net margin of 0.72% and a return on equity of 5.21%. The company had revenue of $348.00 million during the quarter, compared to analysts' expectations of $361.59 million. During the same quarter in the previous year, the company earned $0.66 earnings per share. On average, equities research analysts expect that FS KKR Capital will post 2.89 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Daniel Pietrzak bought 5,000 shares of the stock in a transaction on Friday, February 27th. The stock was bought at an average price of $11.25 per share, with a total value of $56,250.00. Following the completion of the purchase, the insider directly owned 64,800 shares in the company, valued at $729,000. This represents a 8.36% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 0.18% of the stock is owned by insiders.

Hedge Funds Weigh In On FS KKR Capital

Several large investors have recently made changes to their positions in FSK. Beacon Capital Management Inc. purchased a new stake in FS KKR Capital in the second quarter valued at approximately $26,000. Thurston Springer Miller Herd & Titak Inc. purchased a new position in shares of FS KKR Capital during the fourth quarter worth $26,000. Jessup Wealth Management Inc acquired a new stake in shares of FS KKR Capital in the fourth quarter valued at $26,000. FNY Investment Advisers LLC acquired a new stake in shares of FS KKR Capital in the fourth quarter valued at $28,000. Finally, Eastern Bank raised its holdings in shares of FS KKR Capital by 355.6% in the 3rd quarter. Eastern Bank now owns 2,000 shares of the company's stock valued at $30,000 after buying an additional 1,561 shares during the period. 36.26% of the stock is currently owned by institutional investors and hedge funds.

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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