FS KKR Capital (NYSE:FSK) Shares Gap Down – Here’s Why

FS KKR Capital Corp. (NYSE:FSK) shares gapped down before the market opened on Wednesday . The stock had previously closed at $10.78, but opened at $10.31. FS KKR Capital shares last traded at $10.4610, with a volume of 368,395 shares.

Analyst Upgrades and Downgrades

FSK has been the topic of a number of research analyst reports. Royal Bank Of Canada reiterated a “sector perform” rating and set a $11.00 target price on shares of FS KKR Capital in a research report on Tuesday, May 12th. Wall Street Zen cut FS KKR Capital from a “hold” rating to a “sell” rating in a research report on Saturday, February 28th. Truist Financial cut their target price on FS KKR Capital from $17.00 to $11.00 and set a “hold” rating on the stock in a research report on Wednesday, March 4th. Keefe, Bruyette & Woods lowered their price target on FS KKR Capital from $15.00 to $11.00 and set a “market perform” rating on the stock in a report on Thursday, April 16th. Finally, Zacks Research raised FS KKR Capital from a “strong sell” rating to a “hold” rating in a report on Monday, May 4th. Seven investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Reduce” and an average target price of $10.58.

FS KKR Capital Stock Performance

The company has a quick ratio of 2.00, a current ratio of 2.00 and a debt-to-equity ratio of 1.38. The stock has a fifty day moving average of $10.83 and a 200-day moving average of $12.39. The stock has a market cap of $2.91 billion, a PE ratio of -5.27 and a beta of 0.83.

FS KKR Capital (NYSE:FSK) last released 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 positive return on equity of 4.34% and a negative net margin of 38.65%.The company had revenue of $304.00 million for the quarter, compared to analysts’ expectations of $316.81 million. During the same period in the prior year, the business earned $0.65 EPS. The business’s quarterly revenue was down 24.0% compared to the same quarter last year. On average, equities analysts forecast that FS KKR Capital Corp. will post 1.66 EPS for the current year.

FS KKR Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Wednesday, June 17th will be issued a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a yield of 16.2%. The ex-dividend date of this dividend is Wednesday, June 17th. FS KKR Capital’s payout ratio is currently -85.28%.

Institutional Investors Weigh In On FS KKR Capital

Institutional investors have recently added to or reduced their stakes in the business. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in FS KKR Capital in the 4th quarter valued at approximately $26,000. Jessup Wealth Management Inc purchased a new stake in FS KKR Capital in the 4th quarter valued at approximately $26,000. FNY Investment Advisers LLC purchased a new stake in FS KKR Capital in the 4th quarter valued at approximately $28,000. Halbert Hargrove Global Advisors LLC purchased a new stake in FS KKR Capital in the 4th quarter valued at approximately $31,000. Finally, Basepoint Wealth LLC purchased a new stake in FS KKR Capital in the 4th quarter valued at approximately $31,000. Hedge funds and other institutional investors own 36.26% of the company’s stock.

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.