Blue Owl Capital (NYSE:OWL) Given New $9.50 Price Target at UBS Group

Key Points

• UBS Group raised its price target on Blue Owl from $9.00 to $9.50 and maintained a "neutral" rating (implying ~4.7% downside from the prior close), while the Street consensus remains higher with an average target of $15.03 and a "Moderate Buy" rating.
• Blue Owl beat Q1 revenue and fee-related metrics, disclosed it sold roughly half of its SpaceX stake at an ~10x return, and management raised the dividend and authorized share repurchases—factors that have bolstered near-term investor sentiment.
• The firm also faces risks that could drive volatility, including a shareholder lawsuit alleging $414M in excessive fees and reports of some institutional investors trimming exposure to its private-credit funds.

Blue Owl Capital (NYSE:OWL - Get Free Report) had its price target lifted by stock analysts at UBS Group from $9.00 to $9.50 in a research note issued to investors on Friday,Benzinga reports. The firm currently has a "neutral" rating on the stock. UBS Group's target price would suggest a potential downside of 4.74% from the stock's previous close.

Other research analysts also recently issued reports about the company. Zacks Research downgraded Blue Owl Capital from a "hold" rating to a "strong sell" rating in a report on Tuesday, January 27th. Citigroup reiterated an "outperform" rating on shares of Blue Owl Capital in a research report on Tuesday, January 27th. The Goldman Sachs Group reduced their target price on Blue Owl Capital from $14.00 to $9.00 and set a "neutral" rating on the stock in a research report on Tuesday, April 7th. Wolfe Research set a $20.00 price objective on shares of Blue Owl Capital in a research note on Wednesday, January 7th. Finally, TD Cowen lowered their price objective on shares of Blue Owl Capital from $16.00 to $14.00 and set a "buy" rating for the company in a research note on Monday, March 23rd. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Blue Owl Capital currently has an average rating of "Moderate Buy" and a consensus target price of $15.03.

Blue Owl Capital Trading Up 2.3%

Shares of NYSE OWL traded up $0.22 during midday trading on Friday, reaching $9.97. 53,125,180 shares of the stock were exchanged, compared to its average volume of 29,714,420. The company has a market capitalization of $15.50 billion, a P/E ratio of 99.74, a P/E/G ratio of 0.97 and a beta of 1.21. Blue Owl Capital has a 52-week low of $7.95 and a 52-week high of $21.08. The stock has a 50 day moving average price of $9.40 and a 200-day moving average price of $13.06.

Blue Owl Capital (NYSE:OWL - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported $0.19 earnings per share for the quarter, meeting the consensus estimate of $0.19. The company had revenue of $699.88 million during the quarter, compared to the consensus estimate of $687.23 million. Blue Owl Capital had a return on equity of 20.93% and a net margin of 2.75%. On average, analysts forecast that Blue Owl Capital will post 0.9 earnings per share for the current year.

Institutional Investors Weigh In On Blue Owl Capital

Several institutional investors and hedge funds have recently modified their holdings of OWL. Cresset Asset Management LLC lifted its position in shares of Blue Owl Capital by 1,345.0% in the 3rd quarter. Cresset Asset Management LLC now owns 1,379,485 shares of the company's stock worth $23,355,000 after buying an additional 1,284,021 shares during the last quarter. JPMorgan Chase & Co. boosted its stake in Blue Owl Capital by 16.8% in the third quarter. JPMorgan Chase & Co. now owns 11,572,226 shares of the company's stock valued at $195,920,000 after acquiring an additional 1,667,608 shares during the period. Capital International Investors boosted its stake in Blue Owl Capital by 3.5% in the third quarter. Capital International Investors now owns 62,726,334 shares of the company's stock valued at $1,061,999,000 after acquiring an additional 2,141,873 shares during the period. Elevation Point Wealth Partners LLC boosted its stake in Blue Owl Capital by 5,256.9% in the third quarter. Elevation Point Wealth Partners LLC now owns 374,236 shares of the company's stock valued at $6,336,000 after acquiring an additional 367,250 shares during the period. Finally, Partners Group Holding AG boosted its stake in Blue Owl Capital by 8.3% in the third quarter. Partners Group Holding AG now owns 1,940,155 shares of the company's stock valued at $32,847,000 after acquiring an additional 149,292 shares during the period. Hedge funds and other institutional investors own 35.85% of the company's stock.

Key Stories Impacting Blue Owl Capital

Here are the key news stories impacting Blue Owl Capital this week:

• Positive Sentiment: Management disclosed it sold roughly half of its SpaceX stake at a ~$1.25 trillion valuation and said the investment returned ~10x, which materially improves realized gains and near-term distributable earnings. Blue Owl sold about half its SpaceX holding
• Positive Sentiment: Q1 results beat on revenue and fee-related metrics (distributable earnings up, AUM ~ $315B; fee-paying AUM and new commitments remained strong), reassuring investors worried about private-credit weakness. Blue Owl's profit beats on higher fee-related earnings
• Positive Sentiment: Board/management raised the quarterly dividend and announced share repurchases, signalling confidence in cash generation and supporting yield-sensitive buyers. (Dividend announced April 28; quarterly payout increased marginally.)
• Positive Sentiment: Blue Owl raised $3 billion through its private-wealth distribution channel despite industry private-credit turbulence — diversification of distribution helps future fee growth and liquidity. Blue Owl Raises $3B in Wealth Channel
• Neutral Sentiment: Investor flows show a mixed picture: management reported $11B of new commitments but retail/wealth inflows are softer — supports longer-term fee runway but implies near-term growth variability. Seeking Alpha analysis
• Neutral Sentiment: Unusually heavy call-option volume was noted around the earnings move, suggesting short-term bullish positioning that can amplify intraday moves but also adds volatility risk.
• Negative Sentiment: Brown University reportedly cut its stake in a Blue Owl private-credit fund, a sign that some institutional investors are trimming exposure amid private-credit scrutiny. Brown University slashed stake in Blue Owl Private Credit Fund
• Negative Sentiment: A shareholder lawsuit alleges $414M in excessive fees charged by Blue Owl’s adviser, introducing regulatory/legal risk that could pressure sentiment and create headline volatility. Stockholder sues Blue Owl adviser
• Negative Sentiment: Some sell-side skepticism remains: JPMorgan recently lowered its price target, and media coverage has flagged elevated scrutiny and “doomsday” narratives around private credit — factors that can cap upward momentum. Price target lowered to $10.50 at JPMorgan

About Blue Owl Capital

Blue Owl Capital is a global alternative asset manager that focuses on private credit, direct lending and equity-related strategies for institutional investors. Headquartered in New York, the firm develops and manages a range of private markets products designed to provide capital solutions to middle-market and larger corporate borrowers, as well as liquidity and partnership arrangements with private equity firms and other alternative managers.

Its core activities include direct lending and credit strategies that provide senior, unitranche and other structured loan products to companies across industries.

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