Blue Owl Capital (NYSE:OBDC) Hits New 52-Week Low - Time to Sell?

Key Points

• Reached a 52-week low: OBDC fell to $10.64 (last $10.71), trading below its 50- and 200-day moving averages, with a market cap of $5.37 billion and a PE of 8.69.
• Very high dividend yield but risky payout: The stock carries a 13.8% yield ($0.37 quarterly, $1.48 annual) but a payout ratio of 119.35%, raising sustainability concerns.
• Mixed analyst view: Recent price-target cuts and rating changes leave a consensus "Moderate Buy" with a $14.06 target, reflecting diverging opinions despite some upgrades from sell to hold.

Blue Owl Capital Corporation (NYSE:OBDC - Get Free Report) reached a new 52-week low during trading on Tuesday . The stock traded as low as $10.64 and last traded at $10.71, with a volume of 15447 shares trading hands. The stock had previously closed at $10.89.

Wall Street Analyst Weigh In

OBDC has been the topic of several analyst reports. Zacks Research upgraded Blue Owl Capital from a "strong sell" rating to a "hold" rating in a report on Monday, February 23rd. Truist Financial lowered their price target on Blue Owl Capital from $16.00 to $15.00 and set a "buy" rating for the company in a research report on Monday, February 23rd. Keefe, Bruyette & Woods dropped their price objective on shares of Blue Owl Capital from $13.50 to $12.50 and set a "market perform" rating for the company in a report on Monday, February 23rd. Wall Street Zen upgraded Blue Owl Capital from a "sell" rating to a "hold" rating in a research note on Saturday, March 21st. Finally, Royal Bank Of Canada lowered their price target 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. Two analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Blue Owl Capital has an average rating of "Moderate Buy" and a consensus target price of $14.06.

Blue Owl Capital Price Performance

The company has a debt-to-equity ratio of 1.26, a current ratio of 1.17 and a quick ratio of 1.17. The company has a 50-day simple moving average of $11.57 and a 200-day simple moving average of $12.38. The stock has a market cap of $5.37 billion, a PE ratio of 8.69 and a beta of 0.67.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last posted its earnings results on Wednesday, February 18th. The company reported $0.36 EPS for the quarter, topping analysts' consensus estimates of $0.35 by $0.01. The company had revenue of $439.50 million for the quarter, compared to the consensus estimate of $454.38 million. Blue Owl Capital had a return on equity of 10.07% and a net margin of 33.89%. Sell-side analysts anticipate that Blue Owl Capital Corporation will post 1.71 EPS for the current fiscal year.

Blue Owl Capital Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be issued a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a yield of 13.8%. The ex-dividend date is Tuesday, March 31st. Blue Owl Capital's payout ratio is presently 119.35%.

Blue Owl Capital declared that its Board of Directors has authorized 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 reacquire up to 5.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Institutional Trading of Blue Owl Capital

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

About Blue Owl Capital

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.