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In a volatile trading session, FS KKR Capital Corp. (NYSE:FSK) stock has hit a 52-week low, dipping to $18.25. According to InvestingPro data, the stock’s RSI indicates oversold territory, while maintaining an attractive P/E ratio of 9.37 and a substantial dividend yield of 14.68%. The investment firm, which specializes in providing capital to middle market companies, has faced a challenging market environment, reflecting broader economic uncertainties. With a market capitalization of $5.4 billion and a healthy current ratio of 2.86, FSK has demonstrated financial stability. Despite the recent downturn, FSK has managed to record a 1-year total return of 16.29%, signaling resilience in its financial performance amidst the pressures faced by the sector. Investors are closely monitoring the stock as it navigates through the current economic landscape, balancing the recent lows with its year-over-year growth. For deeper insights into FSK’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, FS KKR Capital Corp reported its fourth-quarter 2024 earnings, revealing a slight revenue miss. The company achieved earnings per share of $0.66, which aligned closely with projections, but revenue came in at $407 million, falling short of the anticipated $420.09 million. Despite this, FS KKR Capital reduced its non-accrual investments significantly by 58% and deployed $4.7 billion in capital throughout the year. In a strategic financial move, FS KKR Capital also completed a $380 million debt securitization through its subsidiary, KKR – FSK CLO 2 LLC, which involved the private placement of various classes of secured debt. Analysts have shown a mixed stance on FS KKR Capital’s stock, with RBC Capital Markets raising its price target to $22 while maintaining a Sector Perform rating. Similarly, Keefe, Bruyette & Woods increased the price target to $22, keeping a Market Perform rating. Analysts from these firms highlighted FS KKR Capital’s strong dividend outlook, projecting a total distribution of $2.80 per share in 2025. These developments indicate that the company continues to focus on leveraging its assets and securing financing to support its investment activities.
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