Zacks Investment Research lowered shares of FS Investment (NYSE:FSIC) from a buy rating to a hold rating in a report published on Wednesday morning.
According to Zacks, “FS Investment Corporation is a business development company. It primarily originates and invests in senior secured loans and other securities of private U.S. companies, with the investment objective of generating current income and, to a lesser extent, long-term capital appreciation. FS Investment Corporation is based in United States. “
Other equities analysts have also issued research reports about the company. ValuEngine lowered FS Investment from a hold rating to a sell rating in a research note on Wednesday, May 2nd. Keefe, Bruyette & Woods set a $9.00 price target on FS Investment and gave the company a hold rating in a research note on Friday, March 2nd. Finally, National Securities restated a buy rating and set a $10.00 price target on shares of FS Investment in a research note on Tuesday, May 15th. Two equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and one has assigned a buy rating to the stock. FS Investment presently has an average rating of Hold and an average target price of $9.17.
Shares of FS Investment stock opened at $7.90 on Wednesday. The firm has a market cap of $1.92 billion, a PE ratio of 9.52, a PEG ratio of 3.56 and a beta of 0.88. The company has a debt-to-equity ratio of 0.76, a quick ratio of 2.69 and a current ratio of 2.69. FS Investment has a 12 month low of $6.95 and a 12 month high of $9.40.
FS Investment (NYSE:FSIC) last announced its quarterly earnings results on Thursday, May 10th. The financial services provider reported $0.21 EPS for the quarter, beating the consensus estimate of $0.20 by $0.01. The firm had revenue of $101.02 million for the quarter, compared to analyst estimates of $97.22 million. FS Investment had a return on equity of 8.84% and a net margin of 31.75%. sell-side analysts predict that FS Investment will post 0.74 earnings per share for the current year.
FS Investment declared that its board has initiated a stock repurchase plan on Thursday, March 1st that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the financial services provider to buy shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.
The company also recently declared a quarterly dividend, which will be paid on Tuesday, July 3rd. Stockholders of record on Wednesday, June 20th will be paid a dividend of $0.19 per share. The ex-dividend date of this dividend is Tuesday, June 19th. This represents a $0.76 annualized dividend and a dividend yield of 9.62%. FS Investment’s dividend payout ratio is currently 91.57%.
In related news, insider Brian Gerson bought 15,000 shares of the business’s stock in a transaction on Thursday, March 15th. The shares were bought at an average price of $7.30 per share, for a total transaction of $109,500.00. Following the completion of the purchase, the insider now directly owns 15,000 shares of the company’s stock, valued at $109,500. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Barry Frank bought 5,500 shares of the business’s stock in a transaction on Tuesday, March 6th. The stock was bought at an average price of $7.43 per share, for a total transaction of $40,865.00. The disclosure for this purchase can be found here. Insiders acquired 44,805 shares of company stock worth $323,229 in the last quarter. 1.07% of the stock is owned by insiders.
A number of institutional investors and hedge funds have recently bought and sold shares of FSIC. Cornerstone Financial Partners LLC purchased a new position in FS Investment in the fourth quarter valued at about $173,000. Clear Harbor Asset Management LLC purchased a new position in FS Investment in the fourth quarter valued at about $485,000. IFG Advisory LLC purchased a new position in FS Investment in the fourth quarter valued at about $374,000. Chessman Wealth Strategies RIA purchased a new position in FS Investment in the fourth quarter valued at about $257,000. Finally, Calton & Associates Inc. purchased a new position in FS Investment in the fourth quarter valued at about $175,000. Institutional investors own 34.06% of the company’s stock.
FS Investment Company Profile
FS Investment Corporation is a business development company specializing in investments in debt securities. It seeks to purchase interests in loans through secondary market transactions or directly from the target companies as primary market investments. It also seeks to invest in first lien senior secured loans, second lien secured loans and, to a lesser extent, subordinated loans, or mezzanine loans.
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