Van ECK Associates Corp. Increases Stake in FS KKR Capital Corp.

Van ECK Associates Corp. has boosted its ownership in FS KKR Capital Corp. (NYSE:FSK) by 6.6% during the third quarter, as reported in their latest SEC filing. Following this increase, the institutional investor now holds a total of 5,747,770 shares after acquiring an additional 356,704 shares in the recent quarter. According to the filing, Van ECK Associates Corp. holds 2.05% of FS KKR Capital, valued at approximately $117,886,000.

A variety of other institutional investors and hedge funds have also recently adjusted their positions in FSK. Norden Group LLC entered a new position during the first quarter, investing about $1,362,000 in FS KKR Capital. Similarly, Diversify Advisory Services LLC also acquired a new stake valued at around $662,000 during the same period. In another notable move, Janney Montgomery Scott LLC expanded its holdings by 30.0% in the first quarter, bringing their total to 64,859 shares valued at $1,237,000 after acquiring an additional 14,977 shares. Choreo LLC raised its stake by 3.1%, now owning 30,116 shares worth $574,000 after purchasing 897 shares. Finally, BI Asset Management Fondsmaeglerselskab A S increased its position by 38.3%, totaling 146,100 shares valued at approximately $2,786,000 after acquiring an additional 40,460 shares. Currently, institutional investors and hedge funds collectively own 36.26% of the company’s stock.

Insider Transactions

In related developments, Michael C. Forman, the CEO, sold 195,139 shares on August 15th at an average price of $19.56, totaling over $3.8 million. This transaction was recorded in a legal filing available through the SEC. Conversely, insider Daniel Pietrzak bought 5,000 shares on August 8th at an average cost of $19.21, amounting to a total investment of $96,050. This purchase brought Pietrzak's direct ownership to 44,800 shares, valued at around $860,608, reflecting no change in percentage ownership. Additionally, Forman's earlier sale of 195,139 shares is also documented in an SEC filing, with insiders currently holding 0.25% of the company’s shares.

FS KKR Capital Stock Performance

On a recent trading day, shares of FS KKR Capital fell by 0.5%, dropping $0.10 to reach $20.14. During this session, 1,241,255 shares changed hands, compared to an average trading volume of 1,055,415. The stock has a market capitalization of $5.64 billion, a price-to-earnings ratio of 8.91, and a beta of 1.25. Current financial metrics include a quick ratio of 2.34 and a debt-to-equity ratio of 1.19. The firm’s 50-day moving average stands at $20.07, while the 200-day average is $19.91. Over the past year, FS KKR Capital has seen a low of $18.31 and a high of $20.99.

In its latest earnings report on August 6th, FS KKR Capital revealed an earnings per share (EPS) of $0.75, which surpassed analysts’ expectations of $0.71 by $0.04. The firm also reported a return on equity of 12.39% and a net margin of 35.46%. The revenue for the quarter was $439 million, exceeding the expected $426.41 million. In the same quarter last year, the company reported an EPS of $0.78. Analysts forecast an EPS of 2.86 for the current year.

Dividend Announcement

FS KKR Capital has also announced a dividend, set to be paid on December 18th. Shareholders of record by December 4th will receive a dividend payout of $0.70 per share, marking an increase from the previous dividend of $0.64. This translates to a yield of 12.7% with a dividend payout ratio of 113.27%.

Analyst Ratings

Market analysts have recently shared their insights regarding FS KKR Capital's stock. On October 29th, Wells Fargo reduced their price target for the stock from $21.00 to $20.00 while maintaining an "overweight" rating. Royal Bank of Canada also reaffirmed a "sector perform" rating with a target price of $20.00. Currently, six analysts have given the stock a hold rating, while two have rated it as a buy. According to data from MarketBeat.com, FS KKR Capital holds an average rating of "Hold" with a consensus target price of $19.94.

Overview of FS KKR Capital

FS KKR Capital Corp. is a business development company that specializes in investing in debt securities. The company offers tailored credit solutions to private middle-market companies in the U.S., primarily focusing on senior secured debt and, to a lesser degree, subordinated debt.

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