Blue Owl Capital Target of Unusually High Options Trading (NYSE:OWL)

Key Points

• Blue Owl Capital experienced a significant surge in options trading, with 80,461 call options traded, marking a 655% increase from its typical volume.
• Analysts have mixed views on the stock; while Barclays and Oppenheimer lowered their price targets, Evercore ISI increased theirs, positioning the consensus target price at $22.38.
• The company declared a quarterly dividend of $0.225 per share, corresponding to a 5.4% yield and a dividend payout ratio of 1,000%.

Blue Owl Capital Inc. (NYSE:OWL - Get Free Report) was the recipient of some unusual options trading on Monday. Traders bought 80,461 call options on the stock. This is an increase of 655% compared to the typical volume of 10,663 call options.

Analysts Set New Price Targets

Several analysts have issued reports on OWL shares. Raymond James Financial assumed coverage on Blue Owl Capital in a report on Monday, July 28th. They issued a "market perform" rating for the company. Weiss Ratings restated a "hold (c)" rating on shares of Blue Owl Capital in a report on Wednesday, October 8th. Barclays decreased their price objective on Blue Owl Capital from $23.00 to $21.00 and set an "overweight" rating for the company in a research note on Wednesday, October 8th. Oppenheimer cut their target price on Blue Owl Capital from $25.00 to $24.00 and set an "outperform" rating on the stock in a research report on Tuesday, October 14th. Finally, Evercore ISI raised their target price on Blue Owl Capital from $20.00 to $21.00 and gave the stock an "outperform" rating in a research report on Thursday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $22.38.

Blue Owl Capital Stock Performance

NYSE OWL traded up $0.58 during trading hours on Monday, hitting $16.76. 5,083,655 shares of the company's stock were exchanged, compared to its average volume of 8,275,180. The business's 50 day moving average is $17.95 and its 200-day moving average is $18.48. Blue Owl Capital has a 12-month low of $14.55 and a 12-month high of $26.73. The firm has a market capitalization of $25.96 billion, a P/E ratio of 186.08, a price-to-earnings-growth ratio of 1.16 and a beta of 1.13.

Blue Owl Capital (NYSE:OWL - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported $0.21 earnings per share for the quarter, hitting the consensus estimate of $0.21. The company had revenue of $703.11 million during the quarter, compared to the consensus estimate of $642.13 million. Blue Owl Capital had a return on equity of 19.64% and a net margin of 2.88%. As a group, equities research analysts anticipate that Blue Owl Capital will post 0.92 EPS for the current fiscal year.

Blue Owl Capital Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, August 28th. Shareholders of record on Thursday, August 14th were paid a dividend of $0.225 per share. This represents a $0.90 dividend on an annualized basis and a yield of 5.4%. The ex-dividend date of this dividend was Thursday, August 14th. Blue Owl Capital's dividend payout ratio (DPR) is presently 1,000.00%.

Hedge Funds Weigh In On Blue Owl Capital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Banque Transatlantique SA acquired a new stake in shares of Blue Owl Capital in the first quarter worth $31,000. SVB Wealth LLC bought a new position in Blue Owl Capital during the first quarter valued at about $38,000. Cullen Frost Bankers Inc. increased its stake in shares of Blue Owl Capital by 39.1% in the first quarter. Cullen Frost Bankers Inc. now owns 2,075 shares of the company's stock worth $42,000 after purchasing an additional 583 shares during the period. Allworth Financial LP increased its stake in shares of Blue Owl Capital by 70.5% in the first quarter. Allworth Financial LP now owns 2,414 shares of the company's stock worth $45,000 after purchasing an additional 998 shares during the period. Finally, Northwestern Mutual Wealth Management Co. increased its stake in shares of Blue Owl Capital by 58.6% in the first quarter. Northwestern Mutual Wealth Management Co. now owns 2,478 shares of the company's stock worth $50,000 after purchasing an additional 916 shares during the period. 35.85% of the stock is owned by institutional investors.

About Blue Owl Capital

Blue Owl Capital Inc operates as an asset manager in the United States. The company offers permanent capital base solutions that enables it to offer holistic framework of capital solutions to middle market companies, large alternative asset managers, and corporate real estate owners and tenants. It also provides direct lending products that offer private credit products comprising diversified, technology, first lien, and opportunistic lending to middle-market companies; liquid credit; GP strategic capital products, which offers capital solutions, including GP minority stakes, GP debt financing, and professional sports minority stakes; and real estate products that focuses on acquiring triple net lease real estate by investment grade or creditworthy tenants.

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