PHILADELPHIA—Jerel A. Hopkins, a director at FS KKR Capital Corp (NYSE:FSK), recently purchased 500 shares of the company's common stock. The transaction, which took place on December 6, 2024, was executed at a price of $21.465 per share, amounting to a total purchase value of $10,732. The purchase comes as FSK, with a market capitalization of approximately $6 billion, maintains a robust dividend yield of ~13.5% and has shown strong performance with a 24% year-to-date return. According to InvestingPro, FSK has maintained dividend payments for 11 consecutive years.
Following this acquisition, Hopkins holds a total of 8,642.418 shares, which includes shares acquired through FS KKR Capital Corp's dividend reinvestment plan. The shares are owned indirectly through an Individual Retirement Account (IRA). The company demonstrates strong financial health with a current ratio of 2.82, indicating solid liquidity. InvestingPro analysis reveals 8 additional key insights about FSK's financial position and growth prospects, available to subscribers.
In other recent news, FS KKR Capital Corp reported strong third-quarter earnings, with net investment income surpassing expectations at $0.77 per share and an adjusted net investment income of $0.74 per share. The company has also secured a $600 million underwriting agreement for the issuance and sale of notes, due to mature in 2030, with a consortium of underwriters led by various financial firms. However, Wells Fargo (NYSE:WFC) downgraded FS KKR's stock from Overweight to Equal Weight due to concerns over valuation and credit risk.
RBC (TSX:RY) Capital Markets maintained a Sector Perform rating on FS KKR while raising the price target to $21. This follows a review of the company's earnings per share estimates subsequent to their third-quarter results. The analyst from RBC Capital noted the company's active reduction of non-accruals within its portfolio, which is a positive sign.
Despite a slight decrease in the net asset value per share from $23.95 to $23.82, FS KKR Capital Corp anticipates a GAAP net investment income of about $0.63 per share for the fourth quarter. These are recent developments that investors should take into consideration when evaluating FS KKR Capital Corp's performance and prospects.
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