Blue Owl Capital Corporation (NYSE:OBDC) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Analysts give Blue Owl an average recommendation of "Moderate Buy" from nine firms (3 holds, 4 buys, 2 strong buys) with a mean 12‑month price target of $13.71.
• Blue Owl pays a quarterly dividend of $0.37 (annualized $1.48) for a 12.5% yield, but the payout ratio is a high 119.35%, raising sustainability concerns.
• The company authorized a $300 million share repurchase program (about 5.1% of shares) and last quarter reported EPS of $0.36 (beat by $0.01) while revenue of $439.5M missed estimates.

Shares of Blue Owl Capital Corporation (NYSE:OBDC - Get Free Report) have received an average recommendation of "Moderate Buy" from the nine research firms that are presently covering the company, Marketbeat reports. Three analysts have rated the stock with a hold recommendation, four have assigned a buy recommendation and two have given a strong buy recommendation to the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $13.7143.

A number of research firms have issued reports on OBDC. Truist Financial reduced their target price on shares of Blue Owl Capital from $16.00 to $15.00 and set a "buy" rating for the company in a research note on Monday, February 23rd. Keefe, Bruyette & Woods cut their price target on Blue Owl Capital from $12.50 to $12.00 and set a "market perform" rating on the stock in a report on Thursday, April 16th. Wall Street Zen upgraded Blue Owl Capital from a "sell" rating to a "hold" rating in a research report on Saturday, March 21st. Zacks Research upgraded Blue Owl Capital from a "strong sell" rating to a "hold" rating in a research report on Monday, February 23rd. Finally, Royal Bank Of Canada reduced their price target on Blue Owl Capital from $14.00 to $13.00 and set an "outperform" rating for the company in a research report on Friday, February 20th.

Blue Owl Capital Trading Down 0.4%

NYSE:OBDC opened at $11.82 on Tuesday. The firm has a market capitalization of $5.87 billion, a P/E ratio of 9.53 and a beta of 0.64. The business has a 50 day simple moving average of $11.29 and a 200 day simple moving average of $12.07. The company has a debt-to-equity ratio of 1.26, a current ratio of 1.17 and a quick ratio of 1.17. Blue Owl Capital has a 12-month low of $10.52 and a 12-month high of $15.19.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last issued its earnings results on Wednesday, February 18th. The company reported $0.36 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.01. Blue Owl Capital had a return on equity of 10.07% and a net margin of 33.89%.The firm had revenue of $439.50 million for the quarter, compared to analyst estimates of $454.38 million. Equities research analysts predict that Blue Owl Capital will post 1.36 EPS for the current year.

Blue Owl Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were paid a dividend of $0.37 per share. This represents a $1.48 dividend on an annualized basis and a dividend yield of 12.5%. The ex-dividend date was Tuesday, March 31st. Blue Owl Capital's payout ratio is currently 119.35%.

Blue Owl Capital declared that its Board of Directors has initiated a share buyback plan on Wednesday, February 18th that authorizes the company to repurchase $300.00 million in shares. This repurchase authorization authorizes the company to reacquire up to 5.1% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

Institutional Trading of Blue Owl Capital

Institutional investors have recently made changes to their positions in the stock. Diversify Wealth Management LLC increased its stake in shares of Blue Owl Capital by 37.6% during the first quarter. Diversify Wealth Management LLC now owns 118,420 shares of the company's stock valued at $1,335,000 after acquiring an additional 32,328 shares during the period. Fifth Third Bancorp lifted its position in Blue Owl Capital by 2,447.8% in the first quarter. Fifth Third Bancorp now owns 25,478 shares of the company's stock worth $282,000 after purchasing an additional 24,478 shares during the period. Sovran Advisors LLC bought a new position in Blue Owl Capital during the 1st quarter valued at $227,000. Barnett & Company Inc. boosted its stake in Blue Owl Capital by 53.8% during the 1st quarter. Barnett & Company Inc. now owns 191,000 shares of the company's stock valued at $2,112,000 after purchasing an additional 66,850 shares in the last quarter. Finally, Hsbc Holdings PLC increased its position in shares of Blue Owl Capital by 3.5% during the 1st quarter. Hsbc Holdings PLC now owns 82,350 shares of the company's stock valued at $911,000 after purchasing an additional 2,750 shares during the period. 42.83% of the stock is owned by institutional investors and hedge funds.

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.

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