Blue Owl Capital (NYSE:OWL) Stock Price Up 13.5% - Still a Buy?

Key Points

• Blue Owl shares jumped 13.5% intraday after Q1 results as management flagged higher distributable and fee‑related earnings and AUM growth to $315B; EPS matched consensus at $0.19 while revenue slightly missed estimates.
• The company faces significant downside risks, including a shareholder lawsuit alleging about $414M in excessive fees, analyst downgrades/target cuts and rising regulatory/investigative scrutiny tied to its OCIC vehicle, which could increase volatility.
• While Blue Owl pays a high dividend (annualized yield 9.3%), the payout ratio is an unsustainably high 900%, and valuation/analyst signals are mixed (P/E ~97, consensus “Moderate Buy,” average target ~$15.13), highlighting a high‑risk, high‑reward profile.

Blue Owl Capital Inc. (NYSE:OWL - Get Free Report) rose 13.5% during trading on Thursday . The stock traded as high as $9.43 and last traded at $10.0750. Approximately 13,804,013 shares were traded during mid-day trading, a decline of 52% from the average daily volume of 28,692,938 shares. The stock had previously closed at $8.88.

Blue Owl Capital News Summary

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

• Positive Sentiment: Q1 operating wins — Blue Owl reported higher distributable earnings, stronger fee‑related earnings and AUM growth to $315B, which management cited as evidence of the strength of its three platforms; these fundamentals supported upside in profit metrics. Read More.
• Positive Sentiment: Market reaction — Several outlets noted the stock jumped after Q1 results and commentary, reflecting investor relief that earnings hit or beat key operating metrics. Read More.
• Neutral Sentiment: Reported earnings largely in line — EPS was $0.19, matching consensus and up from $0.17 a year ago, but revenue of ~$699.9M missed the ~$706.6M consensus, leaving mixed top‑line signals for investors. Read More.
• Neutral Sentiment: Asset growth vs. direct lending slowdown — AUM growth met estimates despite continued weakness in direct lending, indicating some resilience but highlighting exposure to a pressured segment. Read More.
• Negative Sentiment: Shareholder lawsuit — A stockholder has sued Blue Owl’s adviser alleging ~$414M in excessive fees, creating legal risk and potential headline volatility. Read More.
• Negative Sentiment: Analyst downgrade/target cut — JPMorgan lowered its price target substantially to $10.50 and moved to a neutral rating, which may reduce buy‑side enthusiasm and limit upside. Read More.
• Negative Sentiment: Heightened scrutiny and related investigations — Coverage flagged growing investor scrutiny as the shares trade near lows, and separate legal/investigative activity tied to Blue Owl Credit Income Corp. (OCIC) has emerged, posing reputational and idiosyncratic risks. Read More. Read More.

Analysts Set New Price Targets

A number of analysts have issued reports on OWL shares. Evercore set a $14.00 target price on Blue Owl Capital in a research note on Friday, February 6th. UBS Group cut their target price on Blue Owl Capital from $16.50 to $12.00 and set a "neutral" rating for the company in a research note on Friday, February 20th. Citizens Jmp cut their target price on Blue Owl Capital from $23.00 to $21.00 and set a "market outperform" rating for the company in a research note on Wednesday, April 22nd. Raymond James Financial reaffirmed a "strong-buy" rating on shares of Blue Owl Capital in a research note on Thursday, February 19th. Finally, Zacks Research downgraded Blue Owl Capital from a "hold" rating to a "strong sell" rating in a research note on Tuesday, January 27th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $15.13.

Blue Owl Capital Stock Performance

The business has a 50-day moving average of $9.43 and a 200-day moving average of $13.09. The stock has a market capitalization of $15.09 billion, a price-to-earnings ratio of 97.16, a P/E/G ratio of 0.97 and a beta of 1.21.

Blue Owl Capital (NYSE:OWL - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The company reported $0.19 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.19. The firm had revenue of $699.88 million during the quarter, compared to the consensus estimate of $706.59 million. Blue Owl Capital had a return on equity of 20.93% and a net margin of 2.75%. Equities analysts predict that Blue Owl Capital Inc. will post 0.9 earnings per share for the current fiscal year.

Blue Owl Capital Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 2nd. Investors of record on Friday, February 20th were issued a dividend of $0.225 per share. This represents a $0.90 dividend on an annualized basis and a yield of 9.3%. The ex-dividend date was Friday, February 20th. Blue Owl Capital's dividend payout ratio (DPR) is 900.00%.

Hedge Funds Weigh In On Blue Owl Capital

Hedge funds and other institutional investors have recently bought and sold shares of the company. Arax Advisory Partners acquired a new position in shares of Blue Owl Capital during the fourth quarter worth about $25,000. Roxbury Financial LLC lifted its stake in Blue Owl Capital by 383.6% during the fourth quarter. Roxbury Financial LLC now owns 1,765 shares of the company's stock worth $26,000 after purchasing an additional 1,400 shares during the last quarter. Toronto Dominion Bank purchased a new stake in Blue Owl Capital during the fourth quarter worth approximately $26,000. Parkside Financial Bank & Trust lifted its stake in Blue Owl Capital by 117.0% during the third quarter. Parkside Financial Bank & Trust now owns 1,608 shares of the company's stock worth $27,000 after purchasing an additional 867 shares during the last quarter. Finally, Lavaca Capital LLC purchased a new stake in Blue Owl Capital during the fourth quarter worth approximately $28,000. 35.85% of the stock is currently owned by hedge funds and other institutional investors.

Blue Owl Capital Company Profile

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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