Blue Owl Capital (NYSE:OWL) Trading 8.6% Higher - Time to Buy?

Key Points

• Shares jumped 8.6% after PIMCO bought the full $400 million BDC bond placement, a catalyst that eased near‑term refinancing/liquidity pressure; Blue Owl also reported a $2.9 billion fund close and bought a stake in BlackFin, which support long‑term fee and asset growth.
• Wall Street is mixed—several firms cut price targets (though some keep Overweight/Outperform ratings) and the stock carries a consensus "Moderate Buy"—but the options market shows heavy put buying (~64,863 puts), indicating elevated hedging or bearish positioning.
• Blue Owl pays a 9.1% dividend (annualized $0.90) but the payout ratio is an unsustainably high 900%, underscoring risks around fee timing, liquidity and dividend sustainability.

Blue Owl Capital Inc. (NYSE:OWL - Get Free Report) was up 8.6% during trading on Wednesday . The company traded as high as $9.89 and last traded at $9.9550. Approximately 26,971,159 shares changed hands during trading, a decline of 6% from the average daily volume of 28,685,633 shares. The stock had previously closed at $9.17.

More Blue Owl Capital News

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

• Positive Sentiment: PIMCO bought the full $400 million BDC bond placement, providing a clear institutional backstop to Blue Owl’s recent private‑credit funding effort; that demand reduces near‑term refinancing/liquidity stress for the BDC vehicle and likely helped lift the stock. Pimco Buys All $400 Million of Bonds Sold by Blue Owl BDC
• Positive Sentiment: Blue Owl acquired a stake in financial‑services manager BlackFin, signaling strategic expansion and potential fee/asset growth benefits over time. Strategic M&A can support confidence in the firm’s growth pipeline. Blue Owl snaps up stake in financial-services manager BlackFin
• Positive Sentiment: Fundraising momentum: Blue Owl announced a $2.9 billion final close for an Asset Special Opportunities fund, underscoring continued capital-raising capability in private credit despite recent headlines. This supports long‑term fee generation. Blue Owl Capital jumps as investors look past redemption fears
• Neutral Sentiment: Piper Sandler reaffirmed an Overweight rating but lowered its price target (from $15 to $12.50), keeping a constructive view while acknowledging near‑term headwinds. Piper Sandler Reaffirms Overweight Rating for Blue Owl Capital
• Neutral Sentiment: Oppenheimer trimmed its price target to $16 (still an Outperform/positive rating), reflecting mixed analyst views — some see recovery potential but factor in fee timing and liquidity risks. Oppenheimer Lowers Blue Owl Capital Price Target
• Neutral Sentiment: Institutional positioning and insider buying have been notable (13G filings and management purchases), indicating some investors are accumulating while others reduce exposure — mixed signals for near‑term volatility. Blue Owl Capital jumps as investors look past redemption fears
• Negative Sentiment: Unusual options activity: a surge in put buying (about 64,863 puts) points to elevated hedging or outright bearish positioning, which can amplify downside if negative news continues. Blue Owl Capital Sees Unusually High Options Volume
• Negative Sentiment: Analyst and media coverage highlight sustained concerns—liquidity optics, fee timing, and elevated costs have driven a deep multi‑month share decline, and Zacks warns those structural issues keep sentiment pressured. Why Blue Owl Capital Stock Is Lagging

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. Piper Sandler dropped their price target on shares of Blue Owl Capital from $15.00 to $12.50 and set an "overweight" rating on the stock in a research note on Tuesday, April 7th. Wolfe Research set a $20.00 target price on Blue Owl Capital in a research report on Wednesday, January 7th. Zacks Research downgraded Blue Owl Capital from a "hold" rating to a "strong sell" rating in a report on Tuesday, January 27th. Oppenheimer lowered their price objective on Blue Owl Capital from $17.00 to $16.00 and set an "outperform" rating for the company in a research note on Monday. Finally, UBS Group cut their target price on Blue Owl Capital from $16.50 to $12.00 and set a "neutral" rating on the stock in a research report on Friday, February 20th. One investment 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 assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $15.97.

Blue Owl Capital Price Performance

The firm has a market cap of $15.32 billion, a P/E ratio of 98.57, a PEG ratio of 0.92 and a beta of 1.21. The firm's 50-day moving average price is $10.06 and its 200 day moving average price is $13.60.

Blue Owl Capital (NYSE:OWL - Get Free Report) last released its earnings results on Thursday, February 5th. The company reported $0.27 EPS for the quarter, topping analysts' consensus estimates of $0.22 by $0.05. Blue Owl Capital had a return on equity of 20.93% and a net margin of 2.75%.The company had revenue of $701.47 million for the quarter, compared to the consensus estimate of $712.75 million. Analysts forecast that Blue Owl Capital Inc. will post 0.92 earnings per share for the current year.

Blue Owl Capital Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, March 2nd. Shareholders 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 dividend yield of 9.1%. The ex-dividend date of this dividend was Friday, February 20th. Blue Owl Capital's dividend payout ratio is 900.00%.

Institutional Investors Weigh In On Blue Owl Capital

Institutional investors and hedge funds have recently bought and sold shares of the business. Nisa Investment Advisors LLC grew its holdings in shares of Blue Owl Capital by 7.3% during the third quarter. Nisa Investment Advisors LLC now owns 10,011 shares of the company's stock valued at $169,000 after purchasing an additional 685 shares during the last quarter. Park Avenue Securities LLC boosted its position in Blue Owl Capital by 5.6% during the 3rd quarter. Park Avenue Securities LLC now owns 13,149 shares of the company's stock valued at $223,000 after purchasing an additional 699 shares during the period. Bessemer Group Inc. boosted its position in Blue Owl Capital by 20.3% during the 3rd quarter. Bessemer Group Inc. now owns 4,967 shares of the company's stock valued at $84,000 after purchasing an additional 838 shares during the period. Parkside Financial Bank & Trust grew its stake in Blue Owl Capital by 117.0% during the 3rd quarter. Parkside Financial Bank & Trust now owns 1,608 shares of the company's stock worth $27,000 after buying an additional 867 shares during the last quarter. Finally, Stonegate Investment Group LLC grew its stake in Blue Owl Capital by 3.6% during the 3rd quarter. Stonegate Investment Group LLC now owns 25,465 shares of the company's stock worth $431,000 after buying an additional 884 shares during the last quarter. Institutional investors and hedge funds own 35.85% of the company's stock.

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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