FSK Should I Buy
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$
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At close0.000(0.000%)Aft-market
ET
FS KKR Capital Corp is not a good buy at this moment for a beginner investor with a long-term strategy. The company is facing significant financial headwinds, including declining revenue, negative net income, and a reduced dividend. Analysts have consistently lowered price targets, and the technical indicators suggest a bearish trend. While insider buying is a positive signal, it is outweighed by the negative financial performance and uncertain earnings outlook.
The technical indicators are bearish. The MACD is below 0 and negatively contracting, the RSI is neutral at 21.449, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 10.636, with resistance levels at 11.836 and 13.035.
Insider buying has increased significantly, with the CIO purchasing 5,000 shares at $11.25, indicating confidence in the company's future. The company is seen as a stable option for high dividend-yielding stocks amid market turbulence.
The company recently cut its dividend from $0.70 to $0.48 per share, leading to a significant drop in stock price and a securities fraud investigation. Analysts have consistently lowered price targets, citing portfolio headwinds and increased non-accrual loans. Financial performance has been poor, with revenue, net income, and EPS all showing steep declines in Q4 2025.
In Q4 2025, revenue dropped by -73.89% YoY to $100 million, net income fell to -$114 million (-177.55% YoY), EPS dropped to -$0.41 (-178.85% YoY), and gross margin decreased by -41.97% YoY to 50.
Analysts have a neutral to hold stance on the stock. Multiple firms, including Truist, B. Riley, and Wells Fargo, have lowered their price targets to $11, citing portfolio headwinds, increased non-accrual loans, and uncertain earnings. The stock is considered cheap on a book value basis but faces significant risks.
