FS KKR Capital Corp. (FSK)

Over the past six months, FSK's stock price has trended downwards. Third-quarter 2025 results showed a decline in adjusted net investment income to $0.57 per share. The fourth-quarter 2025 distribution of $0.70 per share exceeded net investment income. FSK completed a public offering of $400 million in unsecured notes. A new dividend policy for 2026 targets a reduced yield of 10%. The company has experienced persistent Net Asset Value (NAV) declines and an increase in non-accrual investments.

The demand for FS KKR Capital Corp.'s products and services is not subject to traditional seasonality. Instead, the demand for private credit is influenced by broader economic conditions and the interest rate environment. The company's revenue has been under pressure in 2025 due to falling base rates and tighter lending spreads, indicating sensitivity to the interest rate environment rather than calendar-based seasonality.

FS KKR Capital Corp. (FSK) is a publicly traded business development company (BDC) specializing in customized credit solutions to private middle-market U.S. companies. It operates in the Finance sector, focusing on debt securities, particularly senior secured debt. The company aims to generate current income and long-term capital appreciation by providing one-stop credit solutions to companies with annual EBITDA between $50 million and $150 million or more. FSK also receives equity interests and may invest in corporate bonds.

FS KKR Capital Corp. primarily focuses its investment activities on private middle-market companies located within the United States. The company's headquarters are located in Philadelphia, Pennsylvania.

There has been an investor lawsuit investigation initiated on behalf of FSK investors due to a significant decline in share price. Weakening dividend coverage, persistent NAV declines, and rising non-accruals have led to a reduced dividend target for 2026, generating cautious to bearish sentiment among some analysts and investors.

FS KKR Capital Corp. is owned by a mix of institutional shareholders, company insiders, and retail investors. Institutional shareholders hold approximately 29.95% of the company, FSK insiders own about 1.72%, and retail investors hold 68.34%. Major institutional owners include Commonwealth Equity Services LLC, Van Eck Associates Corp, LPL Financial LLC, UBS Group AG, and Morgan Stanley. The largest individual shareholder is Michael C. Forman.