FS KKR Capital (NYSE:FSK) Reaches New 1-Year Low Following Analyst Downgrade

FS KKR Capital Corp. (NYSE:FSK) hit a new 52-week low on Friday after Wall Street Zen downgraded the stock from a hold rating to a sell rating. The stock traded as low as $10.79 and last traded at $10.7950, with a volume of 11559575 shares changing hands. The stock had previously closed at $11.29.

FSK has been the subject of several other research reports. Royal Bank Of Canada cut their price target on FS KKR Capital from $17.00 to $15.00 and set a “sector perform” rating for the company in a research note on Friday. Keefe, Bruyette & Woods lowered their price target on shares of FS KKR Capital from $18.50 to $18.00 and set a “market perform” rating on the stock in a research report on Monday, November 10th. Wells Fargo & Company cut their price objective on shares of FS KKR Capital from $15.00 to $11.00 and set an “equal weight” rating for the company in a report on Friday. Zacks Research raised shares of FS KKR Capital from a “strong sell” rating to a “hold” rating in a report on Wednesday, December 10th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of FS KKR Capital in a research note on Thursday, January 22nd. Eight equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $16.50.

Trending Headlines about FS KKR Capital

Here are the key news stories impacting FS KKR Capital this week:

• Positive Sentiment: Small special dividend announced (record March 18; $0.03 per share, payable April 2) — a one‑time cash distribution that provides a modest near‑term payout to holders.
• Neutral Sentiment: FS KKR posted Q4 2025 results and held an earnings call; management released the presentation and supplemental materials that give detail on portfolio performance and NAV drivers. These disclosures help investors assess credit quality and payout sustainability. Earnings Presentation
• Neutral Sentiment: Analysts and outlets ran focused metric reviews of the quarter (coverage on Q4 key metrics and model impacts). These notes outline where EPS and revenue missed and what to watch next (credit yields, prepayments, expense/costs). Zacks Analysis
• Negative Sentiment: Management cut the regular dividend by ~31%, a direct hit to income investors and a major reason for the stock decline — the market treats BDC payout cuts as a signal of weaker portfolio income or coverage pressure. Dividend Cut Article
• Negative Sentiment: RBC Capital reduced its price target (from $17 to $15) and cited dividend outlook concerns, placing a sector‑perform rating on the stock — analyst downgrades lower investor expectations and can accelerate selling pressure. RBC Coverage
• Negative Sentiment: Wells Fargo cut its price target from $15 to $11 and moved to an equal‑weight rating, signaling lower near‑term upside after the quarter — another anchor on sentiment. Wells Fargo Note
• Negative Sentiment: Broader credit‑market concerns: a Financial Times piece reported a jump in troubled loans at a KKR‑managed private credit fund — investors may fear spillover to FS KKR’s portfolio or tighter credit fundamentals for the manager’s strategies. FT Article

Institutional Investors Weigh In On FS KKR Capital

Institutional investors and hedge funds have recently bought and sold shares of the stock. Alpine Global Management LLC grew its stake in FS KKR Capital by 14.6% in the 4th quarter. Alpine Global Management LLC now owns 113,316 shares of the company’s stock worth $1,678,000 after buying an additional 14,394 shares in the last quarter. Titan Investment Management LLC bought a new stake in shares of FS KKR Capital during the 4th quarter worth $1,863,000. Virtu Financial LLC grew its position in FS KKR Capital by 222.8% in the fourth quarter. Virtu Financial LLC now owns 69,781 shares of the company’s stock worth $1,033,000 after acquiring an additional 48,162 shares in the last quarter. Sunbelt Securities Inc. increased its stake in FS KKR Capital by 13.7% in the fourth quarter. Sunbelt Securities Inc. now owns 59,903 shares of the company’s stock valued at $887,000 after acquiring an additional 7,203 shares during the last quarter. Finally, Jacobs Equity LLC bought a new position in FS KKR Capital in the fourth quarter valued at $313,000. 36.26% of the stock is owned by hedge funds and other institutional investors.

FS KKR Capital Trading Down 4.4%

The company has a debt-to-equity ratio of 1.19, a quick ratio of 1.30 and a current ratio of 1.30. The stock has a 50-day simple moving average of $13.90 and a two-hundred day simple moving average of $15.23.

FS KKR Capital (NYSE:FSK) last announced its earnings results on Wednesday, February 25th. The company reported $0.52 EPS for the quarter, missing analysts’ consensus estimates of $0.55 by ($0.03). FS KKR Capital had a return on equity of 5.12% and a net margin of 0.72%.The company had revenue of $348.00 million during the quarter, compared to analysts’ expectations of $361.59 million. During the same quarter last year, the firm posted $0.66 EPS. On average, analysts predict that FS KKR Capital Corp. will post 2.89 EPS for the current fiscal year.

FS KKR Capital Dividend Announcement

The company also recently disclosed a special dividend, which will be paid on Thursday, April 2nd. Shareholders of record on Wednesday, March 18th will be given a dividend of $0.03 per share. The ex-dividend date is Wednesday, March 18th. This represents a yield of 1,595.0%. FS KKR Capital’s payout ratio is 8,533.33%.

About FS KKR Capital

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.