FS KKR Capital (NYSE:FSK) Reaches New 52-Week High Following Better-Than-Expected Earnings

FS KKR Capital Corp. (NYSE:FSK)’s stock price hit a new 52-week high during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $21.07 and last traded at $21.07, with a volume of 240463 shares changing hands. The stock had previously closed at $20.81.

The company reported $0.74 EPS for the quarter, beating the consensus estimate of $0.70 by $0.04. FS KKR Capital had a net margin of 35.46% and a return on equity of 12.39%. The company had revenue of $441.00 million for the quarter, compared to analyst estimates of $423.58 million. During the same quarter last year, the business earned $0.80 earnings per share.

FS KKR Capital Increases Dividend

The business also recently disclosed a None dividend, which will be paid on Wednesday, December 18th. Investors of record on Wednesday, December 4th will be paid a dividend of $0.70 per share. This represents a dividend yield of 12.7%. The ex-dividend date of this dividend is Wednesday, December 4th. This is a positive change from FS KKR Capital’s previous None dividend of $0.64. FS KKR Capital’s dividend payout ratio (DPR) is currently 113.27%.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the stock. Royal Bank of Canada reiterated a “sector perform” rating and set a $20.00 price objective on shares of FS KKR Capital in a research note on Wednesday, August 14th. Wells Fargo & Company decreased their price target on shares of FS KKR Capital from $21.00 to $20.00 and set an “overweight” rating on the stock in a research report on Tuesday, October 29th. Six analysts have rated the stock with a hold rating and two have issued a buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $19.94.

Insider Activity

In other news, CEO Michael C. Forman sold 195,139 shares of the firm’s stock in a transaction on Thursday, August 15th. The shares were sold at an average price of $19.56, for a total transaction of $3,816,918.84. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 0.25% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of FSK. Summit Securities Group LLC bought a new position in FS KKR Capital in the 2nd quarter worth $30,000. Ridgewood Investments LLC bought a new position in FS KKR Capital in the 2nd quarter worth $37,000. Rothschild Investment LLC bought a new position in FS KKR Capital in the 2nd quarter worth $39,000. Financial Gravity Asset Management Inc. raised its holdings in FS KKR Capital by 198.7% in the 2nd quarter. Financial Gravity Asset Management Inc. now owns 2,136 shares of the company’s stock worth $42,000 after acquiring an additional 1,421 shares during the period. Finally, New Millennium Group LLC bought a new position in FS KKR Capital in the 2nd quarter worth $50,000. Institutional investors own 36.26% of the company’s stock.

FS KKR Capital Stock Performance

The firm’s fifty day moving average price is $20.12 and its 200-day moving average price is $19.96. The company has a current ratio of 2.34, a quick ratio of 2.34 and a debt-to-equity ratio of 1.19. The company has a market cap of $5.90 billion, a P/E ratio of 9.32 and a beta of 1.25.

About FS KKR Capital

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.