Silver Point Capital L.P. Makes New $28.60 Billion Investment in FS KKR Capital Corp. $FSK

Silver Point Capital L.P. acquired a new stake in FS KKR Capital Corp. (NYSE:FSK) in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 2,724,000 shares of the company’s stock, valued at approximately $28,602,000,000. FS KKR Capital makes up 2.6% of Silver Point Capital L.P.’s investment portfolio, making the stock its 6th largest holding. Silver Point Capital L.P. owned approximately 0.99% of FS KKR Capital at the end of the most recent reporting period.

A number of other hedge funds also recently added to or reduced their stakes in FSK. Bison Wealth LLC increased 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 acquiring an additional 720 shares during the period. Goldman Sachs Group Inc. increased 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 purchasing an additional 32,258 shares during the period. Empowered Funds LLC raised its position in FS KKR Capital by 139.9% in the 1st quarter. Empowered Funds LLC now owns 26,744 shares of the company’s stock valued at $560,000 after purchasing an additional 15,596 shares in the last quarter. Marshall Wace LLP purchased a new position in shares of FS KKR Capital in the 2nd quarter valued at about $1,806,000. Finally, Nebula Research & Development LLC grew its position in shares of FS KKR Capital by 83.1% during the second quarter. Nebula Research & Development LLC now owns 20,236 shares of the company’s stock worth $420,000 after buying an additional 9,183 shares in the last quarter. 36.26% of the stock is currently owned by institutional investors and hedge funds.

FS KKR Capital Price Performance

Shares of NYSE:FSK opened at $12.16 on Thursday. FS KKR Capital Corp. has a 12 month low of $9.72 and a 12 month high of $18.25. The firm has a market capitalization of $3.36 billion, a P/E ratio of -9.01 and a beta of 0.83. The company has a debt-to-equity ratio of 1.26, a current ratio of 2.28 and a quick ratio of 2.28. The company’s fifty day moving average price is $11.09 and its 200 day moving average price is $11.08.

FS KKR Capital (NYSE:FSK) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.42 by $0.01. FS KKR Capital had a negative net margin of 28.52% and a positive return on equity of 9.70%. The company had revenue of $290.00 million during the quarter, compared to the consensus estimate of $286.75 million. During the same quarter in the prior year, the firm posted ($0.75) earnings per share. As a group, sell-side analysts predict that FS KKR Capital Corp. will post 1.64 earnings per share for the current fiscal year.

FS KKR Capital Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 2nd. Investors of record on Wednesday, September 16th will be given a $0.44 dividend. This is a boost from FS KKR Capital’s previous quarterly dividend of $0.42. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 14.5%. FS KKR Capital’s payout ratio is currently -124.44%.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the stock. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $13.00 price target (up from $11.00) on shares of FS KKR Capital in a research note on Wednesday, August 12th. JPMorgan Chase & Co. increased their target price on FS KKR Capital from $9.50 to $11.00 and gave the company a “neutral” rating in a report on Wednesday, August 19th. Wall Street Zen upgraded FS KKR Capital from a “sell” rating to a “hold” rating in a research note on Saturday, August 1st. Zacks Research raised FS KKR Capital from a “strong sell” rating to a “hold” rating in a research report on Tuesday, August 11th. Finally, Wells Fargo & Company cut their target price on FS KKR Capital from $11.00 to $10.00 and set an “equal weight” rating on the stock in a research report on Tuesday, May 12th. Seven investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Reduce” and an average target price of $11.43.

FS KKR Capital 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.