Saba Capital Management L.P. Invests $35.73 Million in FS KKR Capital Corp. $FSK

Saba Capital Management L.P. purchased a new stake in FS KKR Capital Corp. (NYSE:FSK) during the first quarter, HoldingsChannel reports. The institutional investor purchased 3,509,748 shares of the company’s stock, valued at approximately $35,729,000. FS KKR Capital accounts for approximately 1.0% of Saba Capital Management L.P.’s holdings, making the stock its 14th biggest position.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Titan Investment Management LLC acquired a new stake in FS KKR Capital in the fourth quarter valued at approximately $1,863,000. UBS Group AG grew its stake in shares of FS KKR Capital by 15.3% during the fourth quarter. UBS Group AG now owns 3,806,076 shares of the company’s stock worth $56,368,000 after buying an additional 505,982 shares during the last quarter. Legacy Capital Group California Inc. increased its holdings in shares of FS KKR Capital by 48.8% during the fourth quarter. Legacy Capital Group California Inc. now owns 313,615 shares of the company’s stock worth $4,645,000 after buying an additional 102,864 shares in the last quarter. Marble Wealth LLC acquired a new position in shares of FS KKR Capital during the fourth quarter worth $1,567,000. Finally, Legal & General Group Plc lifted its stake in shares of FS KKR Capital by 15.3% in the 4th quarter. Legal & General Group Plc now owns 2,296,070 shares of the company’s stock valued at $33,993,000 after acquiring an additional 304,556 shares during the last quarter. 36.26% of the stock is owned by institutional investors.

Analysts Set New Price Targets

FSK has been the topic of several recent research reports. Wells Fargo & Company cut their price objective on FS KKR Capital from $11.00 to $10.00 and set an “equal weight” rating on the stock in a report on Tuesday, May 12th. Keefe, Bruyette & Woods lowered their target price on FS KKR Capital from $15.00 to $11.00 and set a “market perform” rating for the company in a report on Thursday, April 16th. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $11.00 target price on shares of FS KKR Capital in a research report on Tuesday, May 12th. Weiss Ratings reissued a “sell (d+)” rating on shares of FS KKR Capital in a research note on Tuesday, June 2nd. Finally, Zacks Research cut FS KKR Capital from a “hold” rating to a “strong sell” rating in a report on Monday, July 13th. Six investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus target price of $10.58.

FS KKR Capital Price Performance

FSK stock opened at $10.85 on Tuesday. The company has a fifty day moving average price of $10.69 and a 200-day moving average price of $11.45. The company has a market capitalization of $3.04 billion, a P/E ratio of -5.51 and a beta of 0.82. FS KKR Capital Corp. has a 52-week low of $9.72 and a 52-week high of $22.25. The company has a debt-to-equity ratio of 1.38, a quick ratio of 2.00 and a current ratio of 2.00.

FS KKR Capital (NYSE:FSK) last issued its quarterly earnings data on Monday, May 11th. The company reported $0.41 earnings per share for the quarter, missing the consensus estimate of $0.44 by ($0.03). FS KKR Capital had a positive return on equity of 4.34% and a negative net margin of 38.65%.The business had revenue of $304.00 million during the quarter, compared to the consensus estimate of $316.81 million. During the same period in the prior year, the firm earned $0.65 EPS. The business’s revenue for the quarter was down 24.0% compared to the same quarter last year. As a group, equities analysts expect that FS KKR Capital Corp. will post 1.64 EPS for the current year.

FS KKR Capital Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Wednesday, June 17th were issued a dividend of $0.42 per share. The ex-dividend date of this dividend was Wednesday, June 17th. This represents a $1.68 annualized dividend and a yield of 15.5%. FS KKR Capital’s payout ratio is presently -85.28%.

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.