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FS KKR Capital ( (FSK) ) has provided an update.
On May 11, 2026, FS KKR Capital reported first-quarter 2026 results showing pressure on earnings and asset quality, with net investment income falling to $0.42 per share from $0.48 in the prior quarter and net asset value dropping to $18.83 from $20.89, driven by realized and unrealized losses and higher non-accruals. The board nevertheless declared a second-quarter distribution of $0.42 per share payable on or about July 2, 2026 to shareholders of record on June 17, 2026, as the company continued to manage a $12.3 billion portfolio and a net debt-to-equity ratio of 131%.
To bolster shareholder value and capital structure, FSK on May 10, 2026 agreed to issue $150 million of cumulative convertible perpetual preferred stock to a KKR affiliate, with proceeds earmarked for general corporate purposes including potential share repurchases and debt reduction. KKR also launched a planned $150 million tender offer for common shares at $11.00, while FSK’s board authorized a separate $300 million stock repurchase program and KKR agreed to waive half of the subordinated income incentive fee for four quarters, moves that align the adviser with shareholders and may support net investment income and the stock price after a sharp NAV decline.
As part of its financing strategy, the company amended its senior secured revolving credit facility on May 8, 2026, trimming total commitments to about $4.05 billion, raising margins for extending lenders, and resetting the minimum shareholders’ equity covenant to $3.75 billion. These steps, combined with tighter new investment activity during the repurchase period and modestly lower portfolio yields, signal a shift toward balance-sheet defense and shareholder return optimization while the firm works through underperforming assets and elevated non-accrual levels.
The most recent analyst rating on (FSK) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on FS KKR Capital stock, see the FSK Stock Forecast page.
Spark’s Take on FSK Stock
According to Spark, TipRanks’ AI Analyst, FSK is a Neutral.
The score is anchored by middling financial performance due to leverage, volatility, and recent datapoint inconsistencies, alongside weak technicals (below key moving averages with negative MACD). Valuation is supportive (moderate P/E and very high yield), but the latest earnings call was mixed as improving capital execution and guidance are offset by NAV pressure, rising nonaccruals, and reduced dividend outlook.
To see Spark’s full report on FSK stock, click here.
More about FS KKR Capital
FS KKR Capital Corp. is a publicly listed business development company focused on providing private credit and other financing solutions to middle-market companies, with its portfolio concentrated in senior secured debt and diversified across industries. Advised by FS/KKR Advisor, a joint venture between affiliates of KKR and Franklin Square, the firm targets income-oriented investors through regular cash distributions and exposure to a large, yield-focused investment portfolio.
Average Trading Volume: 4,291,009
Technical Sentiment Signal: Sell
Current Market Cap: $3.04B
For an in-depth examination of FSK stock, go to TipRanks’ Overview page.