FS KKR Capital (NYSE:FSK) Hits New 52-Week Low – What’s Next?

FS KKR Capital Corp. (NYSE:FSK)’s stock price hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $10.16 and last traded at $10.4540, with a volume of 5669426 shares. The stock had previously closed at $10.56.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on FSK. Wells Fargo & Company decreased their price objective 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, February 27th. Zacks Research lowered FS KKR Capital from a “hold” rating to a “strong sell” rating in a research report on Monday, March 2nd. Weiss Ratings cut shares of FS KKR Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, March 5th. Royal Bank Of Canada lowered their price objective on FS KKR Capital from $17.00 to $15.00 and set a “sector perform” rating for the company in a research report on Friday, February 27th. Finally, Truist Financial decreased their price objective on FS KKR Capital from $17.00 to $11.00 and set a “hold” rating for the company in a report on Wednesday, March 4th. Seven analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Reduce” and an average price target of $13.36.

FS KKR Capital Price Performance

The company has a quick ratio of 3.05, a current ratio of 3.05 and a debt-to-equity ratio of 1.31. The company has a fifty day simple moving average of $13.10 and a two-hundred day simple moving average of $14.76.

FS KKR Capital (NYSE:FSK) last announced its quarterly earnings data 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 company had revenue of $348.00 million for the quarter, compared to analysts’ expectations of $361.59 million. During the same period in the prior year, the firm earned $0.66 earnings per share. On average, analysts forecast that FS KKR Capital Corp. 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 paid a dividend of $0.03 per share. The ex-dividend date is Wednesday, March 18th. This represents a yield of 1,595.0%. FS KKR Capital’s payout ratio is presently 8,533.33%.

Insider Activity at FS KKR Capital

In other news, insider Daniel Pietrzak bought 5,000 shares of FS KKR Capital stock in a transaction on Friday, February 27th. The stock was purchased at an average cost of $11.25 per share, with a total value of $56,250.00. Following the purchase, the insider directly owned 64,800 shares of the company’s stock, valued at approximately $729,000. This trade represents a 8.36% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 0.18% of the company’s stock.

Institutional Trading of FS KKR Capital

A number of hedge funds and other institutional investors have recently modified their holdings of FSK. Beacon Capital Management Inc. acquired a new position in FS KKR Capital in the 2nd quarter worth about $26,000. Atlantic Union Bankshares Corp bought a new stake in shares of FS KKR Capital during the second quarter valued at approximately $26,000. Thurston Springer Miller Herd & Titak Inc. bought a new position in shares of FS KKR Capital during the 4th quarter worth about $26,000. Jessup Wealth Management Inc bought a new position in FS KKR Capital during the fourth quarter worth about $26,000. Finally, FNY Investment Advisers LLC bought a new stake in FS KKR Capital in the fourth quarter valued at $28,000. Institutional investors own 36.26% of the company’s stock.

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.