Waterloo Capital L.P. has increased its holdings in FS KKR Capital Corp. (NYSE: FSK) by 5.4% during the second quarter of 2023, according to the firm’s latest 13F filing with the Securities and Exchange Commission. Following the acquisition of an additional 10,244 shares, Waterloo Capital now owns a total of 198,588 shares valued at approximately $4.12 million.
Several other institutional investors have also modified their positions in FS KKR Capital recently. For instance, Trust Co. of Vermont raised its stake by 51.0%, acquiring 515 additional shares to reach a total of 1,525 shares, valued at $32,000. Similarly, CFO4Life Group LLC increased its stake by 3.0%, bringing its total to 20,081 shares worth $417,000, while West Michigan Advisors LLC raised its position by 1.5%, now owning 41,194 shares valued at $884,000.
The trend continues with Wescott Financial Advisory Group LLC, which increased its holdings by 2.8%, owning 22,949 shares worth $476,000, and Bison Wealth LLC, which lifted its stake by 3.4%, now holding 21,935 shares valued at $476,000. Overall, institutional investors control approximately 36.26% of FS KKR Capital’s stock.
Stock Performance and Dividend Announcement
As of the latest market data, FS KKR Capital shares opened at $15.62. The company’s 50-day moving average stands at $15.21, while the 200-day moving average is $18.45. Over the past year, shares have traded between a low of $14.05 and a high of $24.10. The company reports a current ratio of 1.30, a quick ratio of 1.30, and a debt-to-equity ratio of 1.19.
In addition to the increase in shareholdings, FS KKR Capital announced a quarterly dividend of $0.64, which is set to be paid on December 17, 2023. Investors of record on December 3, 2023 will be eligible for this dividend, which translates to an annualized dividend of $2.56 and a yield of 16.4%. The company’s current dividend payout ratio (DPR) is notably high at 263.92%.
Insider Transactions and Analyst Ratings
Recent insider trading activity has also been noteworthy. On November 7, 2023, Daniel Pietrzak, an insider, purchased 10,000 shares at an average cost of $15.15 per share, totaling $151,500. Following this transaction, Pietrzak’s ownership increased to 59,800 shares valued at $905,970, marking a 20.08% rise in his position. Furthermore, CEO Michael C. Forman acquired 10,000 shares on November 11, 2023, at an average price of $15.50 per share, amounting to $155,000. This purchase increased his stake by 70.32%, bringing his total to 24,220 shares valued at $375,410.
In terms of market outlook, various analysts have expressed differing views on FS KKR Capital’s stock. The Royal Bank of Canada lowered its price target from $18.00 to $17.00 while maintaining a “sector perform” rating. Conversely, Wells Fargo & Company upgraded the stock from an “underweight” rating to “equal weight” with a target price of $15.00. Overall, seven investment analysts have rated the stock as a “Hold,” while one has issued a “Sell” rating. According to MarketBeat, FS KKR Capital currently holds a consensus rating of “Reduce” with a consensus price target of $17.50.
FS KKR Capital Corp. is recognized as a business development company that specializes in investments in debt securities, offering customized credit solutions to private middle-market companies in the United States. For those interested in the latest updates on FS KKR Capital and its performance, further details can be accessed through dedicated financial news platforms.
