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

Key Points

• Unusually high bearish options activity: Investors purchased 49,159 put options on Blue Owl Capital, about 37% above its typical put volume.
• Shares and fundamentals: OWL rose to $11.01, while the company reported quarterly EPS of $0.22 and revenue of $693.56 million, broadly matching analyst expectations.
• Dividend and analyst outlook: Blue Owl declared a quarterly dividend of $0.23 per share, yielding 8.4%, while analysts maintain a consensus “Moderate Buy” rating with an average price target of $13.44.

Blue Owl Capital Inc. (NYSE:OWL - Get Free Report) was the target of some unusual options trading on Monday. Investors bought 49,159 put options on the stock. This is an increase of approximately 37% compared to the typical volume of 35,786 put options.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Arax Advisory Partners acquired a new stake in shares of Blue Owl Capital in the fourth quarter valued at about $25,000. Toronto Dominion Bank acquired a new position in shares of Blue Owl Capital during the 4th quarter worth about $26,000. Lavaca Capital LLC bought a new stake in Blue Owl Capital during the 4th quarter valued at approximately $28,000. Essential Partners LLC boosted its stake in Blue Owl Capital by 739.7% during the 1st quarter. Essential Partners LLC now owns 3,216 shares of the company's stock valued at $29,000 after purchasing an additional 2,833 shares during the period. Finally, Halbert Hargrove Global Advisors LLC grew its holdings in Blue Owl Capital by 83.5% in the 4th quarter. Halbert Hargrove Global Advisors LLC now owns 2,000 shares of the company's stock valued at $30,000 after buying an additional 910 shares during the last quarter. Institutional investors own 35.85% of the company's stock.

Blue Owl Capital Price Performance

OWL traded up $0.70 on Monday, hitting $11.01. The company had a trading volume of 17,989,647 shares, compared to its average volume of 26,619,023. The stock has a market cap of $17.11 billion, a price-to-earnings ratio of 91.72, a price-to-earnings-growth ratio of 1.11 and a beta of 1.22. The company's fifty day moving average price is $9.50 and its 200 day moving average price is $10.35. Blue Owl Capital has a 1-year low of $7.95 and a 1-year high of $20.58.

Blue Owl Capital (NYSE:OWL - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.22 EPS for the quarter, meeting the consensus estimate of $0.22. Blue Owl Capital had a return on equity of 22.76% and a net margin of 2.71%.The company had revenue of $693.56 million for the quarter, compared to the consensus estimate of $693.15 million. On average, sell-side analysts forecast that Blue Owl Capital will post 0.87 EPS for the current year.

Blue Owl Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Thursday, August 13th will be issued a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a dividend yield of 8.4%. The ex-dividend date of this dividend is Thursday, August 13th. Blue Owl Capital's dividend payout ratio is currently 766.67%.

Analysts Set New Price Targets

Several equities analysts recently weighed in on OWL shares. JPMorgan Chase & Co. cut their price objective on shares of Blue Owl Capital from $19.00 to $10.50 and set a "neutral" rating on the stock in a research report on Wednesday, April 29th. 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. Credit Suisse Group set a $9.10 price target on shares of Blue Owl Capital in a report on Thursday, July 2nd. BMO Capital Markets lifted their price objective on shares of Blue Owl Capital from $11.00 to $12.00 and gave the company an "outperform" rating in a research note on Monday. Finally, TD Cowen reiterated a "buy" rating and issued a $14.00 price objective on shares of Blue Owl Capital in a report on Monday, May 18th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $13.44.

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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