FS Investment (NYSE:FSIC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday.
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. “
Several other research firms also recently weighed in on FSIC. National Securities reissued a “buy” rating and set a $10.00 price target on shares of FS Investment in a research report on Monday, March 5th. Keefe, Bruyette & Woods set a $9.00 price target on FS Investment and gave the stock a “hold” rating in a research report on Friday, March 2nd. Finally, ValuEngine downgraded FS Investment from a “buy” rating to a “hold” rating in a research report on Friday, February 2nd. Two equities research analysts have rated the stock with a sell rating, two have issued a hold rating and one has given a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus target price of $9.17.
FS Investment (NYSE:FSIC) last released its quarterly earnings results on Thursday, May 10th. The financial services provider reported $0.21 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.01. The company had revenue of $101.02 million during the quarter, compared to the consensus estimate of $97.22 million. FS Investment had a return on equity of 8.84% and a net margin of 31.75%. research analysts predict that FS Investment will post 0.74 earnings per share for the current year.
FS Investment declared that its board has authorized a stock repurchase program on Thursday, March 1st that authorizes the company to buyback $50.00 million in shares. This buyback authorization authorizes the financial services provider to reacquire shares of its stock through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its stock is undervalued.
In other FS Investment news, Director Barry Frank acquired 5,500 shares of the stock in a transaction dated Tuesday, March 6th. The stock was acquired at an average price of $7.43 per share, with a total value of $40,865.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Michael C. Forman acquired 5,885 shares of the stock in a transaction dated Wednesday, March 21st. The stock was acquired at an average cost of $7.05 per share, with a total value of $41,489.25. The disclosure for this purchase can be found here. In the last ninety days, insiders bought 44,805 shares of company stock valued at $323,229. Company insiders own 1.07% of the company’s stock.
Several large investors have recently made changes to their positions in FSIC. Lehman Financial Resources Inc. acquired a new position in FS Investment in the fourth quarter valued at $103,000. D.B. Root & Company LLC acquired a new position in FS Investment in the fourth quarter valued at $120,000. AI Financial Services LLC acquired a new position in FS Investment in the fourth quarter valued at $147,000. Cornerstone Financial Partners LLC acquired a new position in FS Investment in the fourth quarter valued at $173,000. Finally, Calton & Associates Inc. acquired a new position in FS Investment in the fourth quarter valued at $175,000. 34.06% of the stock is owned by institutional investors and hedge funds.
About FS Investment
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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