FS Investment Co. (NYSE:FSIC) announced a quarterly dividend on Thursday, May 10th, Zacks reports. Stockholders of record on Wednesday, June 20th will be paid a dividend of 0.19 per share by the financial services provider on Tuesday, July 3rd. This represents a $0.76 annualized dividend and a dividend yield of 9.74%. The ex-dividend date of this dividend is Tuesday, June 19th.
FS Investment has increased its dividend payment by an average of 3.2% per year over the last three years and has increased its dividend annually for the last 2 consecutive years. FS Investment has a dividend payout ratio of 95.0% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Equities research analysts expect FS Investment to earn $0.80 per share next year, which means the company should continue to be able to cover its $0.76 annual dividend with an expected future payout ratio of 95.0%.
FS Investment stock opened at $7.80 on Thursday. The stock has a market capitalization of $1.89 billion, a P/E ratio of 9.40, a PEG ratio of 3.51 and a beta of 0.88. FS Investment has a 12-month low of $6.95 and a 12-month high of $9.31. The company has a current ratio of 2.69, a quick ratio of 2.69 and a debt-to-equity ratio of 0.76.
FS Investment announced that its board has approved a share buyback program on Thursday, March 1st that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the financial services provider to reacquire shares of its stock through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.
FSIC has been the topic of a number of recent research reports. National Securities reissued a “buy” rating and issued a $10.00 target price on shares of FS Investment in a research report on Tuesday, May 15th. Zacks Investment Research upgraded FS Investment from a “hold” rating to a “buy” rating and set a $8.50 price target for the company in a research note on Monday, May 7th. 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, ValuEngine downgraded FS Investment from a “hold” rating to a “sell” rating in a research note on Wednesday, May 2nd. Two investment 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’s stock. The stock has an average rating of “Hold” and a consensus target price of $9.17.
In other news, CEO Michael C. Forman purchased 5,885 shares of FS Investment stock in a transaction that occurred on Wednesday, March 21st. The stock was acquired at an average cost of $7.05 per share, for a total transaction of $41,489.25. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director David J. Adelman purchased 15,008 shares of FS Investment stock in a transaction that occurred on Wednesday, March 21st. The stock was purchased at an average price of $7.05 per share, with a total value of $105,806.40. Following the completion of the purchase, the director now directly owns 34,063 shares in the company, valued at $240,144.15. The disclosure for this purchase can be found here. Insiders have bought a total of 23,645 shares of company stock valued at $167,980 over the last quarter. 1.07% of the stock is currently owned by corporate insiders.
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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