Blue Owl Capital (NYSE:OBDC) Price Target Lowered to $12.00 at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods lowered its price target on Blue Owl Capital from $12.50 to $12.00 and maintained a "market perform" rating, implying roughly a 3.21% upside from the current price.
• Analyst sentiment is mixed but mildly positive with a consensus rating of “Moderate Buy”, an average price target of $13.71, and a split of 2 Strong Buy, 4 Buy and 3 Hold ratings.
• Blue Owl announced a $300 million share buyback (up to 5.1% of shares) and recently reported quarterly EPS of $0.36 (beating estimates) while revenue missed expectations; the stock trades around $11.63 with a market cap of $5.78 billion.

Blue Owl Capital (NYSE:OBDC - Get Free Report) had its price target lowered by Keefe, Bruyette & Woods from $12.50 to $12.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage presently has a "market perform" rating on the stock. Keefe, Bruyette & Woods' price target points to a potential upside of 3.21% from the company's current price.

OBDC has been the topic of several other research reports. Wall Street Zen upgraded shares of Blue Owl Capital from a "sell" rating to a "hold" rating in a research note on Saturday, March 21st. Truist Financial lowered their target price on shares of 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. Zacks Research upgraded shares of Blue Owl Capital from a "strong sell" rating to a "hold" rating in a research note on Monday, February 23rd. Finally, Royal Bank Of Canada lowered their target price on shares of Blue Owl Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a research note on Friday, February 20th. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $13.71.

Blue Owl Capital Price Performance

OBDC opened at $11.63 on Thursday. 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 stock has a market capitalization of $5.78 billion, a P/E ratio of 9.38 and a beta of 0.65. The company's 50-day simple moving average is $11.31 and its two-hundred day simple moving average is $12.16. Blue Owl Capital has a 52-week low of $10.52 and a 52-week high of $15.19.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last posted its earnings results on Wednesday, February 18th. The company reported $0.36 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.01. The business had revenue of $439.50 million for the quarter, compared to analysts' expectations 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 EPS for the current year.

Blue Owl Capital announced that its board has approved a stock buyback plan on Wednesday, February 18th that allows the company to buyback $300.00 million in shares. This buyback authorization allows the company to buy up to 5.1% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's leadership believes its shares are undervalued.

Institutional Investors Weigh In On Blue Owl Capital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Dynamic Technology Lab Private Ltd purchased a new stake in Blue Owl Capital in the 3rd quarter worth approximately $1,208,000. Van ECK Associates Corp increased its holdings in Blue Owl Capital by 6.0% in the 3rd quarter. Van ECK Associates Corp now owns 13,364,378 shares of the company's stock worth $170,663,000 after acquiring an additional 757,203 shares in the last quarter. Caz Investments LP purchased a new stake in Blue Owl Capital in the 3rd quarter worth approximately $14,357,000. Border to Coast Pensions Partnership Ltd increased its holdings in Blue Owl Capital by 19.2% in the 3rd quarter. Border to Coast Pensions Partnership Ltd now owns 1,550,000 shares of the company's stock worth $19,793,000 after acquiring an additional 250,000 shares in the last quarter. Finally, Sound Income Strategies LLC increased its holdings in Blue Owl Capital by 11.4% in the 4th quarter. Sound Income Strategies LLC now owns 3,779,901 shares of the company's stock worth $47,665,000 after acquiring an additional 387,347 shares in the last quarter. 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.

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