FS KKR Capital (NYSE:FSK) Lowered to “Strong Sell” Rating by 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 issued to investors on Monday morning,Zacks.com reports.

A number of other brokerages have also weighed in on FSK. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of FS KKR Capital in a research report on Tuesday, June 2nd. Keefe, Bruyette & Woods cut their price target on FS KKR Capital from $15.00 to $11.00 and set a “market perform” rating on the stock in a research note on Thursday, April 16th. Wells Fargo & Company decreased their price objective on FS KKR Capital from $11.00 to $10.00 and set an “equal weight” rating for the company in a report on Tuesday, May 12th. Finally, Royal Bank Of Canada restated a “sector perform” rating and issued a $11.00 price objective on shares of FS KKR Capital in a report on Tuesday, May 12th. Six equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Reduce” and an average price target of $10.58.

FS KKR Capital Stock Performance

Shares of NYSE:FSK opened at $10.78 on Monday. The firm’s 50 day simple moving average is $10.69 and its 200-day simple moving average is $11.70. The company has a debt-to-equity ratio of 1.38, a quick ratio of 2.00 and a current ratio of 2.00. FS KKR Capital has a one year low of $9.72 and a one year high of $22.68. The firm has a market cap of $3.02 billion, a PE ratio of -5.47 and a beta of 0.82.

FS KKR Capital (NYSE:FSK) last announced its quarterly earnings results on Monday, May 11th. The company reported $0.41 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.03). FS KKR Capital had a negative net margin of 38.65% and a positive return on equity of 4.34%. The firm had revenue of $304.00 million during the quarter, compared to analysts’ expectations of $316.81 million. During the same quarter in the previous year, the firm posted $0.65 EPS. The firm’s revenue for the quarter was down 24.0% on a year-over-year basis. As a group, equities analysts predict that FS KKR Capital will post 1.64 EPS for the current year.

FS KKR Capital Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Wednesday, June 17th were given a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 15.6%. The ex-dividend date of this dividend was Wednesday, June 17th. FS KKR Capital’s dividend payout ratio (DPR) is -85.28%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Bison Wealth LLC increased its stake in FS KKR Capital by 3.4% during the 4th quarter. Bison Wealth LLC now owns 21,935 shares of the company’s stock worth $476,000 after buying an additional 720 shares during the period. Kathmere Capital Management LLC boosted its position in FS KKR Capital by 2.5% in the 4th quarter. Kathmere Capital Management LLC now owns 37,305 shares of the company’s stock valued at $552,000 after buying an additional 900 shares during the last quarter. Acorn Wealth Advisors LLC boosted its position in FS KKR Capital by 1.4% in the 4th quarter. Acorn Wealth Advisors LLC now owns 65,079 shares of the company’s stock valued at $964,000 after buying an additional 914 shares during the last quarter. Rockport Wealth LLC boosted its position in FS KKR Capital by 9.8% in the 1st quarter. Rockport Wealth LLC now owns 11,367 shares of the company’s stock valued at $116,000 after buying an additional 1,018 shares during the last quarter. Finally, Delta Investment Management LLC grew its stake in shares of FS KKR Capital by 4.6% during the fourth quarter. Delta Investment Management LLC now owns 24,086 shares of the company’s stock valued at $357,000 after acquiring an additional 1,049 shares in the last quarter. 36.26% of the stock is owned by institutional investors.

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.