FS KKR Capital (NYSE:FSK – Get Free Report) announced its earnings results on Monday. The company reported $0.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.44 by ($0.03), FiscalAI reports. The company had revenue of $304.00 million for the quarter, compared to the consensus estimate of $316.81 million. FS KKR Capital had a net margin of 0.72% and a return on equity of 5.21%. The firm’s revenue was down 24.0% compared to the same quarter last year. During the same period last year, the business posted $0.65 EPS.
Here are the key takeaways from FS KKR Capital’s conference call:
- FSK and KKR announced a coordinated support package including a $150M fixed‑price tender at $11, a $150M convertible perpetual preferred (5% cash / 7% PIK, conversion tied to the $18.83 NAV), a $300M share repurchase authorization, and a 4‑quarter waiver of 50% of KKR’s subordinated income incentive fee to help stabilize the stock and distributions.
- FSK reported a 9.9% NAV decline (ending NAV $18.83) and GAAP net investment income of $0.42 per share; name‑specific credit events (e.g., Medallia marked to $0.54, ATX, PRG, Affordable Care) and higher non‑accruals (8.1% cost / 4.2% fair value) drove the weakness.
- Management plans to shrink and de‑risk the balance sheet — reducing new originations, focusing on first‑lien/asset‑based finance, targeting deleveraging while executing buybacks, and expecting >$500M net repayments in Q2 with pro‑forma liquidity of ~$2.3B.
- Portfolio backdrop: ~60% first‑lien (≈69% look‑through including JV), senior secured ~64–73%, software & services ~16% across 52 issuers with an internal AI‑risk review showing ~86% of the portfolio as low AI risk and median LTV ~38%, which management says supports credit resilience but could lengthen hold periods.
FS KKR Capital Trading Up 0.2%
NYSE FSK traded up $0.02 during mid-day trading on Monday, reaching $10.86. 4,846,373 shares of the stock were exchanged, compared to its average volume of 3,729,846. The business’s fifty day simple moving average is $10.66 and its 200 day simple moving average is $13.27. FS KKR Capital has a 1-year low of $9.72 and a 1-year high of $22.68. The company has a debt-to-equity ratio of 1.31, a quick ratio of 3.05 and a current ratio of 3.05. The stock has a market capitalization of $3.04 billion, a PE ratio of 362.03 and a beta of 0.85.
FS KKR Capital Announces Dividend
Analysts Set New Price Targets
Several brokerages have recently commented on FSK. B. Riley Financial decreased their price objective on FS KKR Capital from $17.50 to $11.00 and set a “neutral” rating for the company in a report on Tuesday, March 3rd. Truist Financial lowered their target price on FS KKR Capital from $17.00 to $11.00 and set a “hold” rating on the stock in a report on Wednesday, March 4th. Weiss Ratings lowered shares of FS KKR Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, March 5th. Royal Bank Of Canada reduced their price target on shares of FS KKR Capital from $15.00 to $13.00 and set a “sector perform” rating on the stock in a research report on Monday, April 6th. Finally, Keefe, Bruyette & Woods reduced their price target on shares of FS KKR Capital from $15.00 to $11.00 and set a “market perform” rating on the stock in a research report on Thursday, April 16th. Seven equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and a consensus price target of $11.08.
View Our Latest Stock Analysis on FSK
Insider Transactions at FS KKR Capital
In other FS KKR Capital news, insider Daniel Pietrzak acquired 5,000 shares of the stock in a transaction that occurred on Friday, February 27th. The stock was acquired at an average price of $11.25 per share, with a total value of $56,250.00. Following the transaction, the insider directly owned 64,800 shares in the company, valued at approximately $729,000. This represents a 8.36% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 0.18% of the stock is owned by corporate insiders.
Institutional Trading of FS KKR Capital
A number of institutional investors have recently made changes to their positions in the stock. Van ECK Associates Corp lifted its stake in shares of FS KKR Capital by 2.4% in the 4th quarter. Van ECK Associates Corp now owns 4,083,940 shares of the company’s stock worth $60,484,000 after acquiring an additional 94,262 shares during the period. UBS Group AG lifted its stake in FS KKR Capital by 12.1% during the third quarter. UBS Group AG now owns 3,300,094 shares of the company’s stock valued at $49,270,000 after purchasing an additional 355,745 shares during the last quarter. Oak Hill Advisors LP acquired a new stake in FS KKR Capital during the fourth quarter valued at approximately $38,659,000. Balyasny Asset Management L.P. acquired a new stake in FS KKR Capital during the third quarter valued at approximately $21,917,000. Finally, Franklin Resources Inc. lifted its stake in FS KKR Capital by 53.8% during the fourth quarter. Franklin Resources Inc. now owns 1,006,118 shares of the company’s stock valued at $14,901,000 after purchasing an additional 351,798 shares during the last quarter. 36.26% of the stock is owned by institutional investors and hedge funds.
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.
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