Blue Owl Technology Finance (NYSE:OTF) Hits New 1-Year Low on Analyst Downgrade

Shares of Blue Owl Technology Finance Corp. (NYSE:OTF) hit a new 52-week low during trading on Friday after Wells Fargo & Company lowered their price target on the stock from $15.00 to $13.00. Wells Fargo & Company currently has an overweight rating on the stock. Blue Owl Technology Finance traded as low as $11.65 and last traded at $11.73, with a volume of 2700117 shares trading hands. The stock had previously closed at $12.31.

Separately, Zacks Research upgraded shares of Blue Owl Technology Finance from a “strong sell” rating to a “hold” rating in a report on Monday, January 26th. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, Blue Owl Technology Finance presently has a consensus rating of “Moderate Buy” and an average target price of $13.00.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Newbridge Financial Services Group Inc. purchased a new stake in shares of Blue Owl Technology Finance during the fourth quarter worth about $44,000. Clearstead Advisors LLC purchased a new position in Blue Owl Technology Finance during the fourth quarter valued at approximately $124,000. Kestra Advisory Services LLC purchased a new position in Blue Owl Technology Finance in the fourth quarter worth $128,000. Cornerstone Partners Capital Management LLC purchased a new position in shares of Blue Owl Technology Finance in the fourth quarter worth $146,000. Finally, Onyx Bridge Wealth Group LLC acquired a new stake in shares of Blue Owl Technology Finance in the fourth quarter worth $150,000.

Blue Owl Technology Finance Trading Down 5.0%

The firm has a market capitalization of $5.48 billion and a PE ratio of 6.88.

Blue Owl Technology Finance (NYSE:OTF) last posted its quarterly earnings results on Wednesday, February 18th. The company reported $0.30 EPS for the quarter, missing the consensus estimate of $0.32 by ($0.02). Blue Owl Technology Finance had a return on equity of 6.92% and a net margin of 62.89%.The company had revenue of $320.58 million for the quarter, compared to analysts’ expectations of $326.27 million.

Blue Owl Technology Finance Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be issued a dividend of $0.35 per share. This is an increase from Blue Owl Technology Finance’s previous quarterly dividend of $0.05. The ex-dividend date is Tuesday, March 31st. This represents a $1.40 annualized dividend and a yield of 12.0%. Blue Owl Technology Finance’s payout ratio is 80.46%.

Blue Owl Technology Finance declared that its board has initiated a share buyback plan on Wednesday, February 18th that permits the company to repurchase $300.00 million in outstanding shares. This repurchase authorization permits the company to purchase up to 5.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s management believes its shares are undervalued.

Blue Owl Technology Finance Company Profile

Blue Owl Technology Finance (NYSE: OTF) is a publicly traded business development company (BDC) sponsored by alternative asset manager Blue Owl. The firm focuses on providing customized debt and structured capital solutions to technology and technology-enabled companies, with an emphasis on growth-stage and middle-market borrowers. As a BDC, its primary activities include originating, structuring and managing private credit investments tailored to the financing needs of fast-growing businesses.

Its investment approach typically centers on direct lending and credit-oriented products, including senior secured loans, unitranche and subordinated debt, as well as selective equity-linked instruments and structured financings.