Key Points
- Insider buy: Director Daniel Pietrzak bought 10,000 shares on Nov. 7 at $15.15 each, boosting his holding by 20.08% to 59,800 shares valued at about $905,970.
- Dividend concerns: FS KKR announced a $0.64 quarterly dividend (annualized $2.56) implying a 16.7% yield, but the payout ratio is an unsustainably high 263.92%.
- Operational and market backdrop: Q3 EPS of $0.57 met estimates while revenue was slightly below consensus; the stock trades near its 50-day average and carries a MarketBeat consensus rating of Hold with a $17.67 price target after several analysts cut forecasts.
FS KKR Capital Corp. (NYSE:FSK - Get Free Report) insider Daniel Pietrzak purchased 10,000 shares of the stock in a transaction dated Friday, November 7th. The stock was acquired at an average cost of $15.15 per share, with a total value of $151,500.00. Following the transaction, the insider directly owned 59,800 shares in the company, valued at approximately $905,970. This trade represents a 20.08% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink.
FS KKR Capital Stock Performance
Shares of NYSE:FSK opened at $15.35 on Tuesday. The firm has a 50 day moving average of $15.65 and a 200 day moving average of $18.72. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.30 and a quick ratio of 1.30. FS KKR Capital Corp. has a 52 week low of $14.05 and a 52 week high of $24.10.
FS KKR Capital (NYSE:FSK - Get Free Report) last announced its quarterly earnings results on Wednesday, November 5th. The company reported $0.57 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.57. The business had revenue of $373.00 million for the quarter, compared to the consensus estimate of $374.89 million. FS KKR Capital had a return on equity of 5.63% and a net margin of 17.24%.During the same period last year, the business posted $0.74 EPS. Equities research analysts predict that FS KKR Capital Corp. will post 2.89 earnings per share for the current fiscal year.
FS KKR Capital Cuts Dividend
The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 17th. Shareholders of record on Wednesday, December 3rd will be issued a $0.64 dividend. The ex-dividend date is Wednesday, December 3rd. This represents a $2.56 dividend on an annualized basis and a yield of 16.7%. FS KKR Capital's payout ratio is currently 263.92%.
Wall Street Analyst Weigh In
A number of analysts have recently weighed in on FSK shares. Weiss Ratings restated a "hold (c-)" rating on shares of FS KKR Capital in a report on Wednesday, October 8th. JPMorgan Chase & Co. lowered their target price on shares of FS KKR Capital from $18.00 to $15.00 and set a "neutral" rating for the company in a research note on Wednesday, October 1st. Wall Street Zen lowered shares of FS KKR Capital from a "hold" rating to a "sell" rating in a report on Saturday, October 25th. Royal Bank Of Canada decreased their price objective on FS KKR Capital from $21.00 to $18.00 and set a "sector perform" rating for the company in a report on Tuesday, August 26th. Finally, Zacks Research upgraded FS KKR Capital from a "strong sell" rating to a "hold" rating in a research note on Wednesday, October 8th. Eight analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $17.67.
Get Our Latest Research Report on FSK
Institutional Investors Weigh In On FS KKR Capital
Institutional investors and hedge funds have recently made changes to their positions in the stock. CCLA Investment Management acquired a new stake in FS KKR Capital during the 2nd quarter valued at approximately $33,463,000. Gateway Wealth Partners LLC raised its holdings in shares of FS KKR Capital by 4,863.0% during the third quarter. Gateway Wealth Partners LLC now owns 723,508 shares of the company's stock worth $10,802,000 after purchasing an additional 708,930 shares during the last quarter. North Ground Capital lifted its position in FS KKR Capital by 3,743.8% during the third quarter. North Ground Capital now owns 615,000 shares of the company's stock valued at $9,182,000 after purchasing an additional 599,000 shares during the period. SCS Capital Management LLC purchased a new stake in FS KKR Capital in the first quarter valued at $10,822,000. Finally, Generali Asset Management SPA SGR grew its position in FS KKR Capital by 21.7% during the 2nd quarter. Generali Asset Management SPA SGR now owns 2,485,265 shares of the company's stock worth $51,569,000 after purchasing an additional 442,374 shares during the period. 36.26% of the stock is currently owned by institutional investors and hedge funds.
About FS KKR Capital
(
Get Free Report)
FS KKR Capital Corp. is a business development company specializing in investments in debt securities. It provides customized credit solutions to private middle market U.S. companies. It invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market U.S.
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