FS KKR Capital Corp. $FSK Stake Cut by HighTower Advisors LLC

HighTower Advisors LLC cut its position in shares of FS KKR Capital Corp. (NYSE:FSK) by 40.3% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 138,389 shares of the company’s stock after selling 93,432 shares during the quarter. HighTower Advisors LLC’s holdings in FS KKR Capital were worth $2,050,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in FSK. Bison Wealth LLC lifted its stake in 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 purchasing an additional 720 shares during the last quarter. Goldman Sachs Group Inc. lifted its stake in FS KKR Capital by 13.7% during the first 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 last quarter. Empowered Funds LLC lifted its stake in FS KKR Capital by 139.9% during the first quarter. Empowered Funds LLC now owns 26,744 shares of the company’s stock worth $560,000 after purchasing an additional 15,596 shares during the last quarter. Marshall Wace LLP bought a new position in FS KKR Capital during the second quarter worth $1,806,000. Finally, Nebula Research & Development LLC lifted its stake in 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 purchasing an additional 9,183 shares during the last quarter. 36.26% of the stock is currently owned by institutional investors.

More FS KKR Capital News

Here are the key news stories impacting FS KKR Capital this week:

• Positive Sentiment: FS KKR Capital is reportedly planning to sell at least $400 million of junk bonds for high-yield investors, which could help it raise capital and support liquidity. FS KKR plans to sell at least $400M of junk bonds for high yield – report
• Neutral Sentiment: One article argues FS KKR Capital may be a buy as activist investor Saba enters ahead of a possible 13D filing, suggesting potential defense measures or a catalyst from shareholder activism. FS KKR Capital Finally A Buy On Saba Pre-13D Entry, Early Defense Measures
• Negative Sentiment: Multiple law firms are promoting class-action lawsuits and reminding investors of lead-plaintiff deadlines, alleging FS KKR Capital made misleading portfolio valuation disclosures that hurt shareholders. Rosen Encourages FS KKR Capital Investors to Secure Counsel
• Negative Sentiment: The lawsuits and deadline reminders from Bronstein, Gewirtz & Grossman, Faruqi & Faruqi, Berger Montague, and Schall reinforce litigation risk around the stock and may keep investors cautious. Bronstein, Gewirtz & Grossman class action alert

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on FSK. B. Riley Financial cut their target price on FS KKR Capital from $17.50 to $11.00 and set a “neutral” rating on the stock in a research note on Tuesday, March 3rd. Zacks Research upgraded FS KKR Capital from a “strong sell” rating to a “hold” rating in a research note on Monday, May 4th. JPMorgan Chase & Co. cut their target price on FS KKR Capital from $13.00 to $9.50 and set a “neutral” rating on the stock in a research note on Friday, March 13th. 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 note on Tuesday, May 12th. Finally, Weiss Ratings cut FS KKR Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, March 5th. Seven research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, FS KKR Capital has a consensus rating of “Reduce” and an average price target of $10.58.

FS KKR Capital Price Performance

NYSE:FSK opened at $10.95 on Tuesday. The business’s 50-day moving average price is $10.68 and its 200 day moving average price is $12.75. The firm has a market cap of $3.07 billion, a P/E ratio of -5.56 and a beta of 0.85. FS KKR Capital Corp. has a 52-week low of $9.72 and a 52-week high of $22.68. The company has a quick ratio of 2.00, a current ratio of 2.00 and a debt-to-equity ratio of 1.38.

FS KKR Capital (NYSE:FSK) last released its 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). The firm had revenue of $304.00 million for the quarter, compared to analyst estimates of $316.81 million. FS KKR Capital had a positive return on equity of 4.34% and a negative net margin of 38.65%.FS KKR Capital’s revenue was down 24.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.65 earnings per share. As a group, sell-side analysts predict that FS KKR Capital Corp. will post 1.66 earnings per share for the current fiscal year.

FS KKR Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Wednesday, June 17th will be issued a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a yield of 15.3%. The ex-dividend date of this dividend is Wednesday, June 17th. FS KKR Capital’s payout ratio is presently -85.28%.

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.