We recently published a list of 10 Mid-Cap Stocks Insiders Are Buying Recently. In this article, we are going to take a look at where FS KKR Capital Corp. (NYSE:FSK) stands against other mid-cap stocks insiders are buying recently.
Why is it important to keep track of insider trading activity? Insiders, meaning people in high positions, such as executives and directors, have valuable insights into the company’s strategic moves, plans and initiatives. When, for example, a CEO invests their own capital in company stocks, it can indicate strong confidence in the company’s future results.
It is important to note that behind insider selling can be various other motives, that’s why insider trading activity should be assessed within the broader context of the company’s fundamentals, industry trends, and overall market conditions. Many insider purchases don’t necessarily mean the company will be successful. That’s why due diligence before any investment is of crucial importance. Investors should also take into account and carefully analyze underlying reasons for insider transactions. However, insider trading activity in combination with other relevant factors can offer precious insights into a company’s capabilities, helping investors make more informed investment decisions.
To come up with the 10 mid-cap stocks insiders are buying recently, we only considered stocks with a market capitalization of between $2 to $10 billion. We first used Insider Monkey’s insider trading stock screener and looked for stocks with at least two insiders buying over the last three months.
With each stock we note the number of recent insider purchases and the company’s current market capitalization. But why is it important to follow insider activity? Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A portfolio manager typing away on a laptop, analyzing debt securities for private middle market U.S. companies.
FS KKR Capital Corp. (NYSE:FSK)
Number of Insiders Recently Buying: 4
Market Capitalization $6.402B
A business development company (BDC) specializing in debt investments in U.S. middle-market businesses, FS KKR Capital Corp. (NYSE:FSK) is currently trading at $23.21 per share. The firm’s investment strategy includes a focus on senior secured loans, with 58% of its portfolio comprised of first lien loans and 66% in senior secured debt. This conservative approach helps mitigate risk while maintaining substantial exposure to high-quality assets.
Over the last three months, 4 insiders, including directors, bought $249,000 worth of the company’s shares at a price of around $21.52 per share. Interestingly, over the last six months, the company’s shares gained 23.85%. Will this growth trend continue for FS KKR Capital stock, and could this be a good time to invest? It may be worth considering.
This is a dividend paying stock, which is important for some investors. On October 8, 2024, FSK’s board of directors declared a distribution for the fourth quarter of $0.70 per share, consisting of a base distribution of $0.64 per share and a supplemental distribution of $0.06 per share.
In November and December, FS KKR Capital (NYSE:FSK) completed two public offerings of $600 million and $100 million 6.125% unsecured notes due 2030, respectively.
Not only is FS KKR Capital (NYSE:FSK) one of 10 Mid-Cap Stocks Insiders Are Buying Recently, but it is also one of the 10 Best BDC Stocks To Invest In.
Overall, FSK ranks 7th on our list of mid-cap stocks insiders are buying recently. While we acknowledge the potential of FSK, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FSK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
