PHILADELPHIA—Osagie O. Imasogie, a director at FS KKR Capital Corp (NYSE:FSK), has sold a significant portion of his holdings in the company. According to a recent SEC filing, Imasogie sold 40,885 shares of common stock on November 25, 2024. The shares were sold at a weighted average price of $22.0138, yielding a total transaction value of approximately $900,034.
The sale was conducted in multiple transactions, with prices ranging from $21.97 to $22.04 per share. Following this transaction, Imasogie retains ownership of 7,603 shares in the company.
In other recent news, FS KKR Capital Corp reported a robust third-quarter performance with net investment income surpassing expectations at $0.77 per share and an adjusted net investment income of $0.74 per share. The company also declared a fourth-quarter distribution of $0.70 per share and made new investments of approximately $1.1 billion, primarily targeting existing portfolio companies. 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.
In addition, FS KKR Capital Corp has secured a $600 million underwriting agreement for the issuance and sale of notes due to mature in 2030. The capital raised is expected to be used for general corporate purposes, which may include repayment of existing debt, investments, or other business opportunities.
RBC Capital Markets maintained a Sector Perform rating on FS KKR Capital Corp, raising the price target to $21 from the previous $20. The analyst noted that FS KKR Capital has been actively reducing non-accruals within its portfolio, a positive development. A surge in mergers and acquisitions activity could provide additional opportunities for portfolio rotation, according to the analyst's notes.
InvestingPro Insights
The recent sale by director Osagie O. Imasogie comes at a time when FS KKR Capital Corp (NYSE:FSK) is trading near its 52-week high, with the stock price at 99.64% of its peak. This timing aligns with one of the InvestingPro Tips, which indicates that FSK is "Trading near 52-week high." The sale also coincides with the stock's strong performance, as evidenced by its 28.12% total return over the past year.
Investors should note that FSK boasts a substantial dividend yield of 13.18%, which is consistent with another InvestingPro Tip stating that the company "Pays a significant dividend to shareholders." This high yield may be particularly attractive to income-focused investors, especially considering that FSK "Has maintained dividend payments for 11 consecutive years."
The company's P/E ratio of 11.65 suggests a relatively modest valuation compared to the broader market, which could be of interest to value investors. However, it's worth noting that 7 analysts have revised their earnings downwards for the upcoming period, according to InvestingPro Tips.
For those interested in a more comprehensive analysis, InvestingPro offers additional insights, with 10 more tips available for FSK. These additional tips could provide valuable context for understanding the director's sale and the company's overall financial health.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.