FS KKR Capital (NYSE:FSK) Cut to “Strong Sell” at Zacks Research

Zacks Research lowered shares of FS KKR Capital (NYSE:FSK) from a hold rating to a strong sell rating in a research note released on Monday,Zacks.com reports.

A number of other research analysts have also recently issued reports on the company. Keefe, Bruyette & Woods decreased their target price on FS KKR Capital from $18.00 to $15.00 and set a “market perform” rating on the stock in a research report on Monday. Royal Bank Of Canada reduced 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, February 27th. Wall Street Zen lowered shares of FS KKR Capital from a “hold” rating to a “sell” rating in a report on Saturday, February 28th. Weiss Ratings reiterated a “hold (c-)” rating on shares of FS KKR Capital in a research report on Thursday, January 22nd. Finally, B. Riley Financial decreased their target price on shares of FS KKR Capital from $17.50 to $11.00 and set a “neutral” rating on the stock in a research note on Tuesday. Eight equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus price target of $14.14.

FS KKR Capital Price Performance

NYSE FSK opened at $11.02 on Monday. The business has a fifty day moving average price of $13.69 and a two-hundred day moving average price of $15.09. 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 fifty-two week low of $10.28 and a fifty-two week high of $22.95.

FS KKR Capital (NYSE:FSK) last issued its quarterly 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 business had revenue of $348.00 million during the quarter, compared to the consensus estimate of $361.59 million. During the same quarter in the previous year, the business posted $0.66 EPS. As a group, research analysts anticipate that FS KKR Capital will post 2.89 EPS for the current year.

FS KKR Capital Dividend Announcement

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

Insider Transactions at FS KKR Capital

In other news, insider Daniel Pietrzak purchased 5,000 shares of the stock in a transaction on Friday, February 27th. The stock was purchased at an average price of $11.25 per share, for a total transaction of $56,250.00. Following the acquisition, the insider owned 64,800 shares in the company, valued at $729,000. This trade represents a 8.36% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.18% of the company’s stock.

Institutional Trading of FS KKR Capital

Several large investors have recently made changes to their positions in FSK. Atlantic Union Bankshares Corp bought a new stake in FS KKR Capital during the 2nd quarter valued at $26,000. Beacon Capital Management Inc. bought a new stake in shares of FS KKR Capital during the second quarter worth about $26,000. Thurston Springer Miller Herd & Titak Inc. acquired a new stake in shares of FS KKR Capital in the 4th quarter worth about $26,000. Jessup Wealth Management Inc bought a new position in FS KKR Capital in the 4th quarter valued at about $26,000. Finally, FNY Investment Advisers LLC acquired a new position in FS KKR Capital during the 4th quarter valued at about $28,000. 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.