Traders Buy High Volume of FS KKR Capital Call Options (NYSE:FSK)

FS KKR Capital Corp. (NYSE:FSK) was the recipient of some unusual options trading on Tuesday. Traders purchased 54,538 call options on the company. This is an increase of approximately 10,075% compared to the typical daily volume of 536 call options.

Institutional Investors Weigh In On FS KKR Capital

Several hedge funds and other institutional investors have recently added to or reduced their stakes in FSK. Summit Securities Group LLC acquired a new position in shares of FS KKR Capital in the second quarter valued at $30,000. Ridgewood Investments LLC bought a new stake in FS KKR Capital during the 2nd quarter worth approximately $37,000. Rothschild Investment LLC acquired a new position in shares of FS KKR Capital in the second quarter worth approximately $39,000. McIlrath & Eck LLC lifted its stake in shares of FS KKR Capital by 47.5% in the 3rd quarter. McIlrath & Eck LLC now owns 2,096 shares of the company’s stock valued at $41,000 after purchasing an additional 675 shares during the period. Finally, Financial Gravity Asset Management Inc. raised its holdings in shares of FS KKR Capital by 198.7% during the second quarter. Financial Gravity Asset Management Inc. now owns 2,136 shares of the company’s stock valued at $42,000 after purchasing an additional 1,421 shares during the period. 36.26% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

FSK has been the topic of several analyst reports. Royal Bank of Canada raised their price objective on FS KKR Capital from $20.00 to $21.00 and gave the stock a “sector perform” rating in a report on Monday, November 18th. Wells Fargo & Company restated an “equal weight” rating and issued a $21.00 price target on shares of FS KKR Capital in a report on Monday. Seven analysts have rated the stock with a hold rating and one has given a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $20.19.

FS KKR Capital Price Performance

FSK stock traded up $0.01 during trading on Tuesday, hitting $21.99. The company had a trading volume of 2,607,055 shares, compared to its average volume of 1,413,939. The company has a market cap of $6.16 billion, a P/E ratio of 11.69 and a beta of 1.25. The company has a current ratio of 2.96, a quick ratio of 2.96 and a debt-to-equity ratio of 1.21. The company has a fifty day moving average price of $20.68 and a two-hundred day moving average price of $20.20. FS KKR Capital has a fifty-two week low of $18.31 and a fifty-two week high of $22.39.

FS KKR Capital (NYSE:FSK) last released its earnings results on Wednesday, November 6th. The company reported $0.74 EPS for the quarter, beating the consensus estimate of $0.70 by $0.04. FS KKR Capital had a return on equity of 12.31% and a net margin of 29.98%. The company had revenue of $441.00 million during the quarter, compared to analysts’ expectations of $423.58 million. During the same period last year, the firm earned $0.80 EPS. Equities research analysts expect that FS KKR Capital will post 2.89 earnings per share for the current fiscal year.

FS KKR Capital Increases Dividend

The firm also recently disclosed a None dividend, which will be paid on Wednesday, December 18th. Stockholders of record on Wednesday, December 4th will be given a $0.70 dividend. This represents a dividend yield of 12.7%. The ex-dividend date of this dividend is Wednesday, December 4th. This is a positive change from FS KKR Capital’s previous None dividend of $0.64. FS KKR Capital’s payout ratio is currently 136.17%.

FS KKR Capital Company Profile

FS KKR Capital Corp. is a business development company specializing in investments in debt securities. It provides customized credit solutions to private middle market U.S. companies. It invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market U.S.