Blue Owl Capital (NYSE:OBDC) Cut to Sell at Wall Street Zen

Wall Street Zen cut shares of Blue Owl Capital (NYSE:OBDC) from a hold rating to a sell rating in a research report released on Saturday.

Other analysts also recently issued research reports about the stock. Citizens Jmp decreased their price objective on shares of Blue Owl Capital from $17.00 to $15.00 and set a “market outperform” rating on the stock in a report on Friday, November 7th. Royal Bank Of Canada dropped their target price on shares of Blue Owl Capital from $14.00 to $13.00 and set an “outperform” rating for the company in a report on Friday, February 20th. Zacks Research upgraded shares of Blue Owl Capital from a “strong sell” rating to a “hold” rating in a research report on Monday, February 23rd. Truist Financial decreased their price target on Blue Owl Capital from $16.00 to $15.00 and set a “buy” rating on the stock in a research note on Monday, February 23rd. Finally, Wells Fargo & Company lowered their price target on Blue Owl Capital from $13.00 to $12.00 and set an “equal weight” rating on the stock in a report on Friday, November 7th. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Blue Owl Capital presently has an average rating of “Moderate Buy” and an average price target of $14.06.

Blue Owl Capital Price Performance

Blue Owl Capital stock opened at $11.41 on Friday. Blue Owl Capital has a one year low of $10.70 and a one year high of $15.36. The company has a debt-to-equity ratio of 1.26, a quick ratio of 1.17 and a current ratio of 1.17. The business has a fifty day moving average of $11.99 and a two-hundred day moving average of $12.70. The company has a market cap of $5.70 billion, a P/E ratio of 9.20 and a beta of 0.67.

Blue Owl Capital (NYSE:OBDC) last issued its earnings results on Wednesday, February 18th. The company reported $0.36 EPS for the quarter, topping the consensus estimate of $0.35 by $0.01. The company had revenue of $439.50 million for the quarter, compared to analyst estimates of $454.38 million. Blue Owl Capital had a net margin of 33.89% and a return on equity of 10.07%. As a group, analysts predict that Blue Owl Capital will post 1.71 earnings per share for the current fiscal year.

Blue Owl Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be given a $0.37 dividend. The ex-dividend date is Tuesday, March 31st. This represents a $1.48 annualized dividend and a dividend yield of 13.0%. Blue Owl Capital’s payout ratio is currently 119.35%.

Blue Owl Capital announced that its Board of Directors has approved a share buyback plan on Wednesday, February 18th that allows the company to repurchase $300.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 5.1% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s management believes its shares are undervalued.

Hedge Funds Weigh In On Blue Owl Capital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. IFP Advisors Inc grew its position in shares of Blue Owl Capital by 79.6% in the third quarter. IFP Advisors Inc now owns 2,096 shares of the company’s stock valued at $27,000 after purchasing an additional 929 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its position in shares of Blue Owl Capital by 166.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 2,115 shares of the company’s stock worth $27,000 after purchasing an additional 1,320 shares during the last quarter. Atlantic Union Bankshares Corp acquired a new position in shares of Blue Owl Capital during the 3rd quarter worth approximately $28,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC purchased a new stake in Blue Owl Capital in the 3rd quarter valued at approximately $30,000. Finally, AG Campbell Advisory LLC purchased a new stake in Blue Owl Capital in the 4th quarter valued at approximately $36,000. Institutional investors and hedge funds own 42.83% of the company’s stock.

Blue Owl Capital Company Profile

Blue Owl Capital Corporation (NYSE: OBDC) is a publicly traded business development company sponsored by Blue Owl Capital, a global alternative asset manager. Launched in 2020, the firm provides customized financing solutions to middle-market companies across various industries. As an externally managed BDC, Blue Owl Capital Corporation leverages the deep credit‐investment capabilities of its sponsor to deliver flexible capital tailored to the needs of growing businesses.

The company’s investment activities span a range of private credit products, including first‐lien senior secured loans, unitranche facilities, second‐lien financings, mezzanine debt, and minority equity co-investments.