Whipplewood Advisors Acquires $501,000 Stake in FS KKR Capital

Whipplewood Advisors LLC has acquired a new stake in FS KKR Capital Corp. (NYSE: FSK), purchasing 24,123 shares valued at approximately $501,000. This investment was disclosed in the firm’s latest Form 13F filing with the U.S. Securities and Exchange Commission (SEC) for the second quarter of 2023.

Several other institutional investors have also adjusted their positions in FS KKR Capital recently. Bison Wealth LLC increased its holdings by 3.4% in the fourth quarter, bringing its total to 21,935 shares, now valued at $476,000. Janney Montgomery Scott LLC raised its stake by 3.2% in the first quarter, acquiring an additional 1,328 shares for a total of 43,179 shares worth $905,000. Oppenheimer & Co. Inc. and Jaffetilchin Investment Partners LLC both lifted their stakes by 5.9%, with Oppenheimer now holding 16,971 shares valued at $356,000 and Jaffetilchin owning 18,405 shares worth $386,000.

Mirae Asset Global Investments Co. Ltd. made a significant move, increasing its stake by 35.8% in the first quarter. The firm now owns 28,920 shares valued at $607,000. Currently, institutional investors hold 36.26% of FS KKR Capital’s stock.

Analyst Ratings and Market Performance

Recent analyst ratings indicate mixed sentiments regarding FS KKR Capital. The Royal Bank of Canada reduced its price target from $21.00 to $18.00 while maintaining a “sector perform” rating. In contrast, Wells Fargo & Company upgraded its rating from “underweight” to “equal weight” with a target price of $15.00. Keefe, Bruyette & Woods lowered its target from $19.00 to $18.50, assigning a “market perform” rating. Zacks Research recently upgraded the stock from a “strong sell” to a “hold” rating.

Investment analysts on MarketBeat report that FS KKR Capital currently holds a consensus rating of “Hold” with a target price of $17.75.

In trading on Friday, shares of FS KKR Capital opened at $15.26. The stock has shown volatility, with its fifty-day moving average at $16.26 and a two-hundred day average at $19.05. The company has recorded a twelve-month low of $14.05 and a high of $24.10.

Recent Financial Results and Dividend Announcement

FS KKR Capital recently reported its quarterly earnings on August 6, 2023. The company posted earnings of ($0.60) per share, significantly below the consensus estimate of $0.63. Total revenue for the quarter was $398 million, falling short of analyst expectations of $402 million. The firm recorded a net margin of 13.24% and a return on equity of 6.24%. A year earlier, FS KKR Capital had earned $0.75 per share.

In a related financial disclosure, the company announced a quarterly dividend of $0.64 per share, set to be paid on December 17, 2023. Shareholders of record as of December 3, 2023 will receive this dividend, marking an annualized yield of 16.8%. The dividend payout ratio stands at an unusually high 328.21%, which may raise concerns among some investors regarding sustainability.

FS KKR Capital Corp. operates as a business development company, primarily focusing on investments in debt securities. The firm provides tailored credit solutions to private middle-market companies in the United States, with a particular emphasis on senior secured and subordinated debt investments.