Van ECK Associates Increases Stake in FS KKR Capital Corp.

Van ECK Associates Corp has expanded its investment in FS KKR Capital Corp. (NYSE:FSK) by 6.6% during the third quarter, according to the latest filing with the SEC. After acquiring an additional 356,704 shares, Van ECK Associates now holds a total of 5,747,770 shares in the company. This stake comprises 2.05% of FS KKR Capital, valued at approximately $117,886,000 based on its most recent disclosure.

FS KKR Capital Alerts:

• Top 3 Business Development Companies for Double-Digit Dividends

Recently, other institutional investors and hedge funds have also adjusted their positions in FS KKR Capital. For instance, Norden Group LLC initiated a new investment in the first quarter worth around $1,362,000. Diversify Advisory Services LLC purchased a stake valued at roughly $662,000 during the same period. Janney Montgomery Scott LLC increased its holding in FS KKR Capital by 30%, now owning 64,859 shares worth $1,237,000 after adding 14,977 shares in the last quarter. Another investor, Choreo LLC, raised its stake by 3.1%, bringing its total to 30,116 shares valued at $574,000 after acquiring 897 shares. Additionally, BI Asset Management Fondsmaeglerselskab A S grew its position by 38.3%, holding 146,100 shares valued at $2,786,000 following the purchase of another 40,460 shares. In total, institutional investors and hedge funds own approximately 36.26% of FS KKR Capital Corp.

Insider Trading Activity

In related news, on August 15th, FS KKR Capital’s CEO Michael C. Forman sold 195,139 shares at an average price of $19.56, resulting in a total transaction value of $3,816,918.84. This transaction has been reported in a filing with the SEC.

Further, on August 8th, insider Daniel Pietrzak bought 5,000 shares at an average cost of $19.21 per share for a total investment of $96,050. After this transaction, he owns 44,800 shares of the company, valued at about $860,608. This change represents no significant increase in his ownership percentage. The details were also disclosed in a filing with the SEC, which is available for public access.

Current Stock Performance of FS KKR Capital

On Friday, FS KKR Capital shares fell 0.5%, closing at $20.14. The company experienced a trading volume of 1,241,255 shares, surpassing the average volume of 1,055,415 shares. The market capitalization of FS KKR Capital stands at $5.64 billion, with a price-to-earnings (P/E) ratio of 8.91 and a beta of 1.25. The firm reports a quick ratio of 2.34 and a current ratio of 2.34, alongside a debt-to-equity ratio of 1.19. The 50-day moving average sits at $20.07, while the 200-day moving average is at $19.91. Over the past year, the stock has traded between a low of $18.31 and a high of $20.99.

FS KKR Capital recently published its quarterly earnings results on August 6th, reporting earnings per share (EPS) of $0.75, which beat the consensus estimate of $0.71 by $0.04. The company’s return on equity was 12.39% with a net margin of 35.46%. The revenue for the quarter was $439.00 million, exceeding analysts' expectations of $426.41 million. In the same period last year, the business reported an EPS of $0.78. Analysts project that FS KKR Capital Corp. will achieve an EPS of 2.86 for the current year.

Dividend Announcement

Additionally, the company has recently announced a dividend payment scheduled for Wednesday, December 18th. Investors holding shares on record as of December 4th will receive a dividend of $0.70 per share, an increase from the previous dividend of $0.64. This change reflects a yield of 12.7%. The dividend payout ratio (DPR) currently stands at 113.27%.

Analyst Ratings and Projections

Several financial analysts have shared their insights on FS KKR Capital's stock. Wells Fargo & Company recently downgraded the price target from $21.00 to $20.00, maintaining an "overweight" rating. Royal Bank of Canada retained a "sector perform" rating and set a price objective of $20.00 for the stock. Six investment analysts have issued a hold rating while two have assigned a buy rating to FS KKR Capital. As per data from MarketBeat.com, the stock currently enjoys an average rating of "Hold" with a consensus price target of $19.94.

Overview of FS KKR Capital Corp.

About FS KKR Capital

FS KKR Capital Corp. is a business development company focused on investments in debt securities. The company aims to offer tailored credit solutions to private middle market companies in the U.S., primarily investing in senior secured debt and, to a lesser extent, subordinated debt.

Final Thoughts

As investment dynamics evolve, FS KKR Capital continues to draw interest from institutional investors. Given the trends of shareholder movements and recent earnings results, the company's future performance will be closely monitored by analysts and investors alike.

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