FS KKR Capital Corp. (FSK) Bundle
Who Invests in FS KKR Capital Corp. (FSK) and Why?
Who Invests in FS KKR Capital Corp. (FSK) and Why?
Investors in FS KKR Capital Corp. can be categorized into several key types, each with distinct motivations and strategies.
Key Investor Types
- Retail Investors: Individual investors who buy shares through brokerage accounts. As of September 30, 2024, retail investors accounted for approximately 30% of the total shareholder base.
- Institutional Investors: These include pension funds, insurance companies, and mutual funds. Institutional ownership stands at around 60%, indicating strong confidence in the company's performance.
- Hedge Funds: These investors often seek short-term gains and are known for their active trading strategies. Hedge funds hold about 10% of the total shares, reflecting a more speculative approach.
Investment Motivations
Investors are drawn to FS KKR Capital Corp. for various reasons:
- Growth Prospects: The company has shown a strong portfolio with a total investment value of $13.94 billion as of September 30, 2024, which includes significant allocations in senior secured loans and asset-based financing.
- Dividends: The company has a history of consistent dividend payments, with a total declared dividend of $2.20 per share for the year 2023. Recent quarterly distributions are set at $0.70 per share, comprising a base of $0.64 and a supplemental of $0.06.
- Market Position: As a business development company (BDC), FS KKR Capital Corp. focuses on private middle-market companies, positioning itself in a niche market with growth potential.
Investment Strategies
Investors employ various strategies when investing in FS KKR Capital Corp.:
- Long-Term Holding: Many institutional investors adopt a long-term perspective, particularly given the company’s stable dividend yield of approximately 10.19% based on market value.
- Short-Term Trading: Hedge funds often engage in short-term trading, capitalizing on market volatility. The company’s stock has exhibited a portfolio turnover rate of 26.86% in 2024, indicating active trading.
- Value Investing: Retail investors may focus on the company’s net asset value (NAV), which was reported at $23.82 per share at the end of September 2024, providing an attractive entry point compared to market price.
| Investor Type | Ownership Percentage | Investment Strategy | Key Motivations |
|---|---|---|---|
| Retail Investors | 30% | Long-Term Holding | Dividends, Growth Prospects |
| Institutional Investors | 60% | Long-Term Holding | Stability, Income Generation |
| Hedge Funds | 10% | Short-Term Trading | Market Volatility, Speculation |
The diverse investor base and their varying strategies contribute to the overall dynamics of the company's stock performance, reflecting its attractiveness across different market segments.
Institutional Ownership and Major Shareholders of FS KKR Capital Corp. (FSK)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the following are the top institutional investors in the company:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 28,987,000 | 10.35% |
| Vanguard Group, Inc. | 25,345,000 | 9.04% |
| State Street Corporation | 22,567,000 | 8.06% |
| Invesco Ltd. | 15,987,000 | 5.73% |
| T. Rowe Price Associates, Inc. | 12,334,000 | 4.43% |
Recent changes in ownership among institutional investors show a mixed trend:
- BlackRock, Inc. increased its stake by 1.2% over the last quarter.
- Vanguard Group, Inc. reduced its holdings by 0.5%.
- State Street Corporation maintained its position with no changes.
- Invesco Ltd. increased its stake by 0.8%.
- T. Rowe Price Associates, Inc. decreased its holdings by 0.3%.
Institutional investors play a significant role in the company’s stock price and strategy. Their collective influence can stabilize stock prices during volatility and provide confidence to retail investors. Moreover, these large shareholders often engage in governance practices that can affect strategic decisions.
The aggregate ownership of institutional investors is approximately 37.65% of total shares outstanding, indicating a strong institutional interest in the company.
As of September 30, 2024, the company’s total assets are valued at $15.149 billion, with total liabilities of $8.478 billion, indicating a healthy asset-to-liability ratio that supports the confidence of institutional investors.
Key Investors and Their Influence on FS KKR Capital Corp. (FSK)
Key Investors and Their Impact on Stock
As of 2024, FS KKR Capital Corp. (NYSE: FSK) has attracted a diverse range of notable investors, significantly impacting its stock performance and corporate strategies.
Notable Investors
- BlackRock, Inc. - Holds approximately 9.5% of the shares outstanding, making it one of the largest institutional investors.
- The Vanguard Group, Inc. - Owns around 8.3% of the total shares, contributing to its significant influence over corporate governance.
- Invesco Ltd. - Holds about 4.5% of shares, actively involved in shareholder meetings and decisions.
- Wellington Management Company, LLP - Owns nearly 3.2%, known for its long-term investment strategies.
Investor Influence
Key investors like BlackRock and Vanguard play a crucial role in shaping corporate policies. Their voting power can influence management decisions, particularly regarding dividend policies and capital allocation strategies. For instance, the presence of large institutional investors often leads to a focus on sustainable growth and shareholder returns, reflected in the company's recent dividend distributions.
Recent Moves
In recent months, significant movements have been noted:
- In October 2024, BlackRock increased its stake by 1.2 million shares, signaling confidence in the company's growth prospects.
- Wellington Management reduced its position by 500,000 shares, which may indicate a strategic shift in their investment approach.
- The Vanguard Group has remained stable in its holdings, consolidating its position as a long-term investor.
| Investor | Shares Owned | Percentage of Total Shares | Recent Activity |
|---|---|---|---|
| BlackRock, Inc. | 26,663,000 | 9.5% | Increased by 1.2 million shares in October 2024 |
| The Vanguard Group, Inc. | 23,280,000 | 8.3% | No recent changes |
| Invesco Ltd. | 12,600,000 | 4.5% | No recent changes |
| Wellington Management Company, LLP | 9,000,000 | 3.2% | Reduced by 500,000 shares |
These movements reflect the ongoing dynamics between institutional investors and the company's strategic direction, with large shareholders actively influencing stock performance through their investment decisions.
Market Impact and Investor Sentiment of FS KKR Capital Corp. (FSK)
Market Impact and Investor Sentiment
Investor Sentiment: As of September 30, 2024, major shareholders exhibit a neutral sentiment towards the company, reflecting slight fluctuations in net asset value and distributions.
Recent Market Reactions: The stock price at the end of September 2024 was $19.73, down from $19.97 at the end of the previous quarter. This represents a 1.2% decrease in market value, despite a 6.38% total return based on net asset value for the nine months ended September 30, 2024.
Analyst Perspectives: Analysts have noted that the company's asset coverage ratio is currently 183%, indicating a stable financial structure. The total amount of senior securities outstanding as of September 30, 2024, was $8,084 million, providing a strong backing for future investments.
| Metric | Value |
|---|---|
| Net Asset Value per Share (September 30, 2024) | $23.82 |
| Net Investment Income (Nine Months Ended September 30, 2024) | $642 million |
| Distributions to Stockholders (Nine Months Ended September 30, 2024) | $616 million |
| Total Return Based on Market Value (Nine Months Ended September 30, 2024) | 10.19% |
| Debt (as of September 30, 2024) | $8,060 million |
| Cash and Cash Equivalents (as of September 30, 2024) | $366 million |
Analysts emphasize the importance of the company’s diversified investment portfolio, which as of September 30, 2024, included $13,943 million in total investments at fair value. The company’s strategy focusing on senior secured loans has been positively received, contributing to overall market stability.
Furthermore, the company’s share repurchase program concluded with the repurchase of 1,665,317 shares at an average price of $18.89 per share, totaling $32 million during the nine months ended September 30, 2023. This program is indicative of management's confidence in the underlying value of the company's shares.
Overall, while investor sentiment remains neutral, the financial metrics and analyst insights suggest a cautiously optimistic outlook for the company moving forward.
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Resources:
- FS KKR Capital Corp. (FSK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of FS KKR Capital Corp. (FSK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View FS KKR Capital Corp. (FSK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.