Daniel Pietrzak, Co-President at
FS KKR Capital Corp (FSK), recently picked up 6,000 shares. The buy increased his holdings by nearly 20 percent, and came to a total cost just over $112,500.
He was joined by a company director, who bought 1,175 shares on the same day, paying just over $22,000. Other company directors have been buyers over the past few months, and the other Co-President has picked up 6,000 shares back in May and June.
Overall, company insiders own 0.2 percent of shares.
The business development company has seen shares drop about 9 percent in the past year, a bit less than the overall market. As a BDC, the company makes loans to small businesses, earning high interest rates. Those rates are able to rise with rising interest rates as well.
Action to take: Investors interested in income may like shares here. The stock yields over 12 percent, as BDCs are required to pay out the majority of their earnings as income. Don’t expect an increased dividend over time.
For traders, shares have been in an uptrend over the past few weeks. The January 2023 $20 calls, last going for about $0.45, can likely deliver mid-to-high double-digit returns in the coming weeks on a further rally in shares.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.