Blue Owl Capital (NYSE:OBDC) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded OBDC from a "hold" to a "sell", though analysts remain mixed overall with a consensus rating of "Moderate Buy" and a mean price target of $14.06 after several recent price-target cuts.
• Shares trade around $11.49 with a P/E of 9.27 and a 52-week range of $10.70–$15.36; the company slightly beat EPS estimates ($0.36 vs. $0.35) but reported revenue below expectations.
• Blue Owl authorized a $300 million stock repurchase plan (about 5.1% of shares), signaling management believes the stock may be undervalued.

Blue Owl Capital (NYSE:OBDC - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

A number of other analysts have also recently commented on OBDC. Zacks Research upgraded Blue Owl Capital from a "strong sell" rating to a "hold" rating in a research report on Monday, February 23rd. Keefe, Bruyette & Woods decreased their target price on Blue Owl Capital from $13.50 to $12.50 and set a "market perform" rating on the stock in a research report on Monday, February 23rd. Truist Financial dropped their price target 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. Wells Fargo & Company cut their price target on shares of Blue Owl Capital from $13.00 to $12.00 and set an "equal weight" rating for the company in a report on Friday, November 7th. Finally, Royal Bank Of Canada reduced their price objective on shares of 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. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $14.06.

Blue Owl Capital Trading Down 0.6%

Shares of Blue Owl Capital stock opened at $11.49 on Friday. The firm has a 50-day simple moving average of $12.01 and a two-hundred day simple moving average of $12.74. The company has a debt-to-equity ratio of 1.26, a quick ratio of 1.17 and a current ratio of 1.17. Blue Owl Capital has a fifty-two week low of $10.70 and a fifty-two week high of $15.36. The company has a market cap of $5.74 billion, a P/E ratio of 9.27 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, beating analysts' consensus estimates 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 analysts' expectations of $454.38 million. As a group, equities analysts predict that Blue Owl Capital will post 1.71 earnings per share for the current fiscal year.

Blue Owl Capital announced that its Board of Directors has initiated a stock repurchase 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 an indication that the company's management believes its shares are undervalued.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of 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 in the last quarter. Caitong International Asset Management Co. Ltd lifted its position in Blue Owl Capital by 166.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 2,115 shares of the company's stock worth $27,000 after buying an additional 1,320 shares in the last quarter. Atlantic Union Bankshares Corp acquired a new position in Blue Owl Capital during the third quarter worth $28,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new position in Blue Owl Capital during the third quarter worth $30,000. Finally, First Horizon Advisors Inc. purchased a new stake in Blue Owl Capital in the 2nd quarter valued at $40,000. 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.

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