Short Interest in FS KKR Capital Corp. (NYSE:FSK) Expands By 104.9%

Key Points

• Short interest jumped 104.9% in February to 9,311,295 shares, leaving a days-to-cover ratio of about 1.6 days.
• FSK missed quarterly estimates (EPS $0.52 vs. $0.55 expected; revenue $348M vs. $361.6M), prompting several analyst downgrades and cuts to price targets, with a MarketBeat consensus rating of "Reduce" and an average target of $14.14.
• The stock trades near its one-year low (recently $10.33 vs. 1-year low $10.16) and insiders remain active, including Daniel Pietrzak's purchase of 5,000 shares.

FS KKR Capital Corp. (NYSE:FSK - Get Free Report) was the recipient of a significant increase in short interest during the month of February. As of February 27th, there was short interest totaling 9,311,295 shares, an increase of 104.9% from the February 12th total of 4,543,383 shares. Based on an average trading volume of 5,816,565 shares, the days-to-cover ratio is currently 1.6 days. Based on an average trading volume of 5,816,565 shares, the days-to-cover ratio is currently 1.6 days.

FS KKR Capital Price Performance

Shares of FSK stock traded down $0.13 on Thursday, reaching $10.33. 2,351,372 shares of the company were exchanged, compared to its average volume of 3,616,575. The company has a debt-to-equity ratio of 1.31, a quick ratio of 3.05 and a current ratio of 3.05. FS KKR Capital has a 1 year low of $10.16 and a 1 year high of $22.68. The company has a market cap of $2.89 billion, a price-to-earnings ratio of 341.83 and a beta of 0.86. The business has a 50-day moving average price of $13.29 and a 200 day moving average price of $14.84.

FS KKR Capital (NYSE:FSK - Get Free Report) last released 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 during the quarter, compared to analysts' expectations 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 period last year, the business earned $0.66 earnings per share. Equities research analysts forecast that FS KKR Capital will post 2.89 earnings per share for the current fiscal year.

FS KKR Capital Dividend Announcement

The business also recently announced a special dividend, which will be paid on Thursday, April 2nd. Investors of record on Wednesday, March 18th will be issued a $0.03 dividend. The ex-dividend date is Wednesday, March 18th. This represents a yield of 1,595.0%. FS KKR Capital's dividend payout ratio (DPR) is 6,000.00%.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the stock. Zacks Research lowered FS KKR Capital from a "hold" rating to a "strong sell" rating in a report on Monday, March 2nd. Wells Fargo & Company lowered their price target on shares of FS KKR Capital from $15.00 to $11.00 and set an "equal weight" rating on the stock in a report on Friday, February 27th. Keefe, Bruyette & Woods cut their price target on shares of FS KKR Capital from $18.00 to $15.00 and set a "market perform" rating on the stock in a report on Monday, March 2nd. B. Riley Financial reduced their target price on 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. Finally, Weiss Ratings downgraded FS KKR Capital from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, March 5th. Seven investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Reduce" and an average price target of $14.14.

Insiders Place Their Bets

In related news, insider Daniel Pietrzak acquired 5,000 shares of the company's stock in a transaction on Friday, February 27th. The stock was acquired at an average price of $11.25 per share, with a total value of $56,250.00. Following the acquisition, 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 filing with the SEC, which is available through this link. Insiders own 0.18% of the company's stock.

Hedge Funds Weigh In On FS KKR Capital

Hedge funds and other institutional investors have recently made changes to their positions in the stock. CFO4Life Group LLC raised its holdings in FS KKR Capital by 3.0% during the second quarter. CFO4Life Group LLC now owns 20,081 shares of the company's stock worth $417,000 after purchasing an additional 578 shares in the last quarter. Transce3nd LLC grew its stake in shares of FS KKR Capital by 3.5% in the 2nd quarter. Transce3nd LLC now owns 17,426 shares of the company's stock valued at $362,000 after purchasing an additional 591 shares during the last quarter. Wescott Financial Advisory Group LLC increased its stake in FS KKR Capital by 2.8% in the 2nd quarter. Wescott Financial Advisory Group LLC now owns 22,949 shares of the company's stock valued at $476,000 after buying an additional 615 shares during the period. Aries Wealth Management boosted its holdings in shares of FS KKR Capital by 3.1% in the third quarter. Aries Wealth Management now owns 23,565 shares of the company's stock valued at $352,000 after acquiring an additional 700 shares in the last quarter. Finally, Bison Wealth LLC increased its stake in shares of FS KKR Capital by 3.4% during the fourth quarter. Bison Wealth LLC now owns 21,935 shares of the company's stock worth $476,000 after acquiring an additional 720 shares during the period. Hedge funds and other 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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