FS KKR Capital (NYSE:FSK) Reaches New 52-Week High – Still a Buy?

FS KKR Capital Corp. (NYSE:FSK) shares hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $21.25 and last traded at $21.22, with a volume of 552007 shares trading hands. The stock had previously closed at $21.01.

Wall Street Analyst Weigh In

Several research firms have weighed in on FSK. Royal Bank of Canada restated a “sector perform” rating and issued a $20.00 price target on shares of FS KKR Capital in a research note on Wednesday, August 14th. Wells Fargo & Company reduced their target price on FS KKR Capital from $21.00 to $20.00 and set an “overweight” rating on the stock in a report on Tuesday, October 29th. Six research analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, FS KKR Capital currently has a consensus rating of “Hold” and an average price target of $19.94.

FS KKR Capital Price Performance

The firm has a market capitalization of $5.91 billion, a P/E ratio of 11.22 and a beta of 1.25. The stock’s fifty day simple moving average is $20.17 and its 200 day simple moving average is $20.00. The company has a debt-to-equity ratio of 1.21, a current ratio of 2.96 and a quick ratio of 2.96.

FS KKR Capital (NYSE:FSK) last posted its earnings results on Wednesday, November 6th. The company reported $0.74 EPS for the quarter, beating analysts’ consensus estimates of $0.70 by $0.04. FS KKR Capital had a net margin of 29.98% and a return on equity of 12.31%. The company had revenue of $441.00 million during the quarter, compared to analysts’ expectations of $423.58 million. During the same quarter in the prior year, the company posted $0.80 earnings per share. On average, equities research analysts predict that FS KKR Capital Corp. will post 2.89 EPS for the current year.

FS KKR Capital Increases Dividend

The firm also recently announced 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 yield of 12.7%. This is an increase from FS KKR Capital’s previous None dividend of $0.64. The ex-dividend date of this dividend is Wednesday, December 4th. FS KKR Capital’s payout ratio is 136.17%.

Institutional Investors Weigh In On FS KKR Capital

Several institutional investors have recently added to or reduced their stakes in the business. Summit Securities Group LLC acquired a new position in FS KKR Capital in the 2nd quarter worth approximately $30,000. Ridgewood Investments LLC acquired a new position in shares of FS KKR Capital in the 2nd quarter valued at about $37,000. Rothschild Investment LLC purchased a new stake in shares of FS KKR Capital in the second quarter worth about $39,000. Financial Gravity Asset Management Inc. grew its holdings in FS KKR Capital by 198.7% during the second 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 acquired a new position in FS KKR Capital in the second quarter valued at approximately $50,000. Institutional investors and hedge funds own 36.26% of the company’s stock.

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.