Blue Owl Technology Finance (NYSE:OTF) Reaches New 1-Year Low – Should You Sell?

Blue Owl Technology Finance Corp. (NYSE:OTF)’s stock price hit a new 52-week low during trading on Thursday . The company traded as low as $10.89 and last traded at $10.9360, with a volume of 520265 shares trading hands. The stock had previously closed at $11.16.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on OTF shares. Wells Fargo & Company reduced their price target on Blue Owl Technology Finance from $15.00 to $13.00 and set an “overweight” rating on the stock in a research note on Friday, February 20th. Truist Financial reduced their price target on Blue Owl Technology Finance from $17.00 to $16.00 and set a “buy” rating on the stock in a research note on Monday, February 23rd. Zacks Research raised Blue Owl Technology Finance from a “strong sell” rating to a “hold” rating in a research note on Monday, January 26th. Finally, Keefe, Bruyette & Woods reduced their price target on Blue Owl Technology Finance from $16.00 to $13.00 and set a “market perform” rating on the stock in a research note on Monday, February 23rd. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Blue Owl Technology Finance presently has a consensus rating of “Moderate Buy” and an average price target of $14.00.

Blue Owl Technology Finance Stock Performance

The firm has a market cap of $5.08 billion and a P/E ratio of 6.48. The business’s fifty day moving average price is $12.14.

Blue Owl Technology Finance (NYSE:OTF) last released its quarterly earnings data on Wednesday, February 18th. The company reported $0.30 EPS for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.02). The firm had revenue of $223.52 million for the quarter, compared to analyst estimates of $326.27 million. Blue Owl Technology Finance had a return on equity of 6.91% and a net margin of 62.89%.

Blue Owl Technology Finance Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st will be issued a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a dividend yield of 12.7%. The ex-dividend date is Tuesday, March 31st. This is a positive change from Blue Owl Technology Finance’s previous quarterly dividend of $0.05. Blue Owl Technology Finance’s payout ratio is currently 82.35%.

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

Insider Activity at Blue Owl Technology Finance

In other news, Director Chris Temple acquired 5,000 shares of the company’s stock in a transaction dated Wednesday, February 25th. The stock was acquired at an average cost of $11.49 per share, for a total transaction of $57,450.00. Following the acquisition, the director directly owned 5,000 shares in the company, valued at approximately $57,450. This represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this link.

Institutional Trading of Blue Owl Technology Finance

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Pallas Capital Advisors LLC increased its holdings in Blue Owl Technology Finance by 642.4% in the 4th quarter. Pallas Capital Advisors LLC now owns 85,480 shares of the company’s stock valued at $1,243,000 after purchasing an additional 73,966 shares in the last quarter. Blue Trust Inc. increased its holdings in Blue Owl Technology Finance by 141.6% in the 4th quarter. Blue Trust Inc. now owns 126,897 shares of the company’s stock valued at $1,845,000 after purchasing an additional 74,370 shares in the last quarter. TrueMark Investments LLC acquired a new stake in Blue Owl Technology Finance in the 4th quarter valued at $654,000. Wealth Enhancement Advisory Services LLC increased its holdings in Blue Owl Technology Finance by 137.9% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 73,992 shares of the company’s stock valued at $1,044,000 after purchasing an additional 42,888 shares in the last quarter. Finally, Catalina Capital Group LLC acquired a new stake in Blue Owl Technology Finance in the 4th quarter valued at $239,000.

About Blue Owl Technology Finance

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.