FS KKR Capital (NYSE:FSK) Reaches New 12-Month Low on Analyst Downgrade

FS KKR Capital Corp. (NYSE:FSK) hit a new 52-week low during mid-day trading on Friday after Wall Street Zen downgraded the stock from a hold rating to a sell rating. The stock traded as low as $10.79 and last traded at $10.7950, with a volume of 11559575 shares. The stock had previously closed at $11.29.

FSK has been the subject of several other research reports. Weiss Ratings reissued a “hold (c-)” rating on shares of FS KKR Capital in a report on Thursday, January 22nd. Zacks Research raised shares of FS KKR Capital from a “strong sell” rating to a “hold” rating in a report on Wednesday, December 10th. Keefe, Bruyette & Woods reduced their target price on shares of FS KKR Capital from $18.50 to $18.00 and set a “market perform” rating for the company in a research note on Monday, November 10th. Wells Fargo & Company decreased their target price on shares of FS KKR Capital from $15.00 to $11.00 and set an “equal weight” rating for the company in a research report on Friday. Finally, Royal Bank Of Canada dropped their price target on shares of FS KKR Capital from $17.00 to $15.00 and set a “sector perform” rating on the stock in a research note on Friday. Eight analysts have rated the stock with a Hold rating, According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $16.50.

Key Stories Impacting FS KKR Capital

Here are the key news stories impacting FS KKR Capital this week:

• Positive Sentiment: Small special dividend announced (record March 18; $0.03 per share, payable April 2) — a one‑time cash distribution that provides a modest near‑term payout to holders.
• Neutral Sentiment: FS KKR posted Q4 2025 results and held an earnings call; management released the presentation and supplemental materials that give detail on portfolio performance and NAV drivers. These disclosures help investors assess credit quality and payout sustainability. Earnings Presentation
• Neutral Sentiment: Analysts and outlets ran focused metric reviews of the quarter (coverage on Q4 key metrics and model impacts). These notes outline where EPS and revenue missed and what to watch next (credit yields, prepayments, expense/costs). Zacks Analysis
• Negative Sentiment: Management cut the regular dividend by ~31%, a direct hit to income investors and a major reason for the stock decline — the market treats BDC payout cuts as a signal of weaker portfolio income or coverage pressure. Dividend Cut Article
• Negative Sentiment: RBC Capital reduced its price target (from $17 to $15) and cited dividend outlook concerns, placing a sector‑perform rating on the stock — analyst downgrades lower investor expectations and can accelerate selling pressure. RBC Coverage
• Negative Sentiment: Wells Fargo cut its price target from $15 to $11 and moved to an equal‑weight rating, signaling lower near‑term upside after the quarter — another anchor on sentiment. Wells Fargo Note
• Negative Sentiment: Broader credit‑market concerns: a Financial Times piece reported a jump in troubled loans at a KKR‑managed private credit fund — investors may fear spillover to FS KKR’s portfolio or tighter credit fundamentals for the manager’s strategies. FT Article

Institutional Investors Weigh In On FS KKR Capital

Institutional investors and hedge funds have recently bought and sold shares of the business. Beacon Capital Management Inc. acquired a new position in shares of FS KKR Capital in the 2nd quarter worth approximately $26,000. Atlantic Union Bankshares Corp bought a new stake in FS KKR Capital during the second quarter worth approximately $26,000. Thurston Springer Miller Herd & Titak Inc. acquired a new position in FS KKR Capital in the fourth quarter worth approximately $26,000. Jessup Wealth Management Inc acquired a new position in FS KKR Capital in the fourth quarter worth approximately $26,000. Finally, FNY Investment Advisers LLC bought a new position in shares of FS KKR Capital in the fourth quarter valued at $28,000. 36.26% of the stock is owned by institutional investors and hedge funds.

FS KKR Capital Price Performance

The company has a debt-to-equity ratio of 1.19, a quick ratio of 1.30 and a current ratio of 1.30. The business has a 50-day moving average price of $13.90 and a 200 day moving average price of $15.25.

FS KKR Capital (NYSE:FSK) last issued its earnings results on Wednesday, February 25th. The company reported $0.52 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.55 by ($0.03). FS KKR Capital had a return on equity of 5.12% and a net margin of 0.72%.The company had revenue of $348.00 million during the quarter, compared to analyst estimates of $361.59 million. During the same quarter in the previous year, the firm earned $0.66 earnings per share. On average, equities research analysts expect that FS KKR Capital Corp. will post 2.89 EPS for the current year.

FS KKR Capital Dividend Announcement

The company also recently disclosed a special dividend, which will be paid on Thursday, April 2nd. Shareholders of record on Wednesday, March 18th will be paid a dividend of $0.03 per share. The ex-dividend date of this dividend is Wednesday, March 18th. This represents a yield of 1,595.0%. FS KKR Capital’s dividend payout ratio is currently 8,533.33%.

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.