FS KKR Capital (NYSE:FSK) Rating Lowered to Sell at Wall Street Zen

FS KKR Capital (NYSE:FSK) was downgraded by investment analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a report released on Saturday.

A number of other equities research analysts have also recently weighed in on FSK. Zacks Research raised shares of FS KKR Capital from a “strong sell” rating to a “hold” rating in a research note on Wednesday, December 10th. Weiss Ratings reiterated a “hold (c-)” rating on shares of FS KKR Capital in a report on Thursday, January 22nd. Keefe, Bruyette & Woods decreased their price target on FS KKR Capital from $18.50 to $18.00 and set a “market perform” rating on the stock in a research note on Monday, November 10th. Wells Fargo & Company lowered their price target on 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 cut their price objective on FS KKR Capital from $17.00 to $15.00 and set a “sector perform” rating on the stock in a report on Friday. Eight research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $16.50.

FS KKR Capital Trading Down 4.4%

NYSE:FSK opened at $10.80 on Friday. FS KKR Capital has a 52 week low of $10.79 and a 52 week high of $23.84. The stock’s fifty day moving average is $13.90 and its two-hundred day moving average is $15.25. The company has a debt-to-equity ratio of 1.19, a quick ratio of 1.30 and a current ratio of 1.30.

FS KKR Capital (NYSE:FSK) last released its quarterly 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 for the quarter, compared to analysts’ expectations of $361.59 million. FS KKR Capital had a return on equity of 5.12% and a net margin of 0.72%.During the same quarter in the prior year, the company posted $0.66 earnings per share. On average, equities research analysts predict that FS KKR Capital will post 2.89 EPS for the current year.

Institutional Investors Weigh In On FS KKR Capital

A number of hedge funds have recently bought and sold shares of FSK. Bison Wealth LLC grew its position 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 buying an additional 720 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in FS KKR Capital by 13.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 267,890 shares of the company’s stock worth $5,612,000 after acquiring an additional 32,258 shares in the last quarter. Empowered Funds LLC grew its holdings in FS KKR Capital by 139.9% during the 1st quarter. Empowered Funds LLC now owns 26,744 shares of the company’s stock worth $560,000 after acquiring an additional 15,596 shares in the last quarter. IFG Advisory LLC increased its position in shares of FS KKR Capital by 3.2% in the 2nd quarter. IFG Advisory LLC now owns 90,361 shares of the company’s stock valued at $1,875,000 after purchasing an additional 2,837 shares during the last quarter. Finally, AlphaStar Capital Management LLC acquired a new stake in shares of FS KKR Capital in the 2nd quarter valued at $426,000. Institutional investors and hedge funds own 36.26% of the company’s stock.

FS KKR Capital News Summary

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

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.