Blue Owl Technology Finance Corp. (NYSE:OTF) Given Average Rating of "Hold" by Analysts

Key Points

• Blue Owl Technology Finance has an average analyst rating of “Hold” from six covering firms, with a consensus 12-month price target of $13.60.
• The company recently missed earnings expectations, reporting $0.29 EPS versus $0.31 expected, while analysts have been trimming price targets and one firm downgraded the stock to “strong sell.”
• Blue Owl announced a much larger quarterly dividend of $0.35 per share, implying a 12.5% yield, and its board also approved a $300 million share repurchase program.

Shares of Blue Owl Technology Finance Corp. (NYSE:OTF - Get Free Report) have been assigned an average rating of "Hold" from the six research firms that are covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, two have issued a hold recommendation and three have given a buy recommendation to the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $13.60.

Several equities analysts recently commented on the stock. Truist Financial decreased their price target on shares of Blue Owl Technology Finance from $17.00 to $16.00 and set a "buy" rating on the stock in a research note on Monday, February 23rd. Royal Bank Of Canada dropped their target price on shares of Blue Owl Technology Finance from $14.00 to $12.00 and set a "sector perform" rating for the company in a research report on Monday. Citizens Jmp dropped their target price on shares of Blue Owl Technology Finance from $17.00 to $16.00 and set a "market outperform" rating for the company in a research report on Wednesday, April 22nd. Keefe, Bruyette & Woods dropped their target price on shares of Blue Owl Technology Finance from $13.00 to $12.00 and set a "market perform" rating for the company in a research report on Tuesday, May 12th. Finally, Zacks Research cut shares of Blue Owl Technology Finance from a "hold" rating to a "strong sell" rating in a research report on Tuesday, May 12th.

Blue Owl Technology Finance Stock Performance

OTF traded up $0.01 during trading on Monday, reaching $11.18. 720,627 shares of the stock were exchanged, compared to its average volume of 2,132,414. The company has a market cap of $5.17 billion and a PE ratio of 12.41. Blue Owl Technology Finance has a twelve month low of $10.67 and a twelve month high of $21.62. The business's 50 day moving average price is $11.67.

Blue Owl Technology Finance (NYSE:OTF - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The company reported $0.29 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.31 by ($0.02). Blue Owl Technology Finance had a net margin of 32.78% and a return on equity of 7.43%. The business had revenue of $325.94 million during the quarter. During the same period last year, the firm posted $0.41 earnings per share. On average, equities analysts anticipate that Blue Owl Technology Finance will post 1.26 EPS for the current year.

Blue Owl Technology Finance Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 12.5%. The ex-dividend date is Tuesday, June 30th. This is a positive change from Blue Owl Technology Finance's previous quarterly dividend of $0.05. Blue Owl Technology Finance's dividend payout ratio (DPR) is 155.56%.

Blue Owl Technology Finance announced that its Board of Directors has approved a stock repurchase program on Wednesday, February 18th that authorizes the company to buyback $300.00 million in shares. This buyback authorization authorizes the company to buy up to 5.1% of its shares through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at Blue Owl Technology Finance

In related news, Director Chris Temple acquired 5,000 shares of the company's stock in a transaction on Wednesday, February 25th. The shares were acquired at an average cost of $11.49 per share, for a total transaction of $57,450.00. Following the purchase, the director owned 5,000 shares in the company, valued at approximately $57,450. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Melissa Weiler acquired 10,000 shares of the company's stock in a transaction on Wednesday, May 13th. The shares were bought at an average price of $10.90 per share, for a total transaction of $109,000.00. Following the completion of the purchase, the director owned 10,000 shares in the company, valued at approximately $109,000. This represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders purchased 17,000 shares of company stock valued at $188,630. 0.05% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Blue Owl Technology Finance

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bayshore Capital Advisors LLC purchased a new position in Blue Owl Technology Finance during the 4th quarter valued at about $2,220,000. Stephens Inc. AR purchased a new position in shares of Blue Owl Technology Finance during the fourth quarter worth about $8,220,000. Apollon Wealth Management LLC grew its holdings in shares of Blue Owl Technology Finance by 260.2% during the fourth quarter. Apollon Wealth Management LLC now owns 72,751 shares of the company's stock worth $1,058,000 after purchasing an additional 52,551 shares in the last quarter. Pallas Capital Advisors LLC grew its holdings in shares of Blue Owl Technology Finance by 642.4% during the fourth quarter. Pallas Capital Advisors LLC now owns 85,480 shares of the company's stock worth $1,243,000 after purchasing an additional 73,966 shares in the last quarter. Finally, Denali Advisors LLC purchased a new stake in Blue Owl Technology Finance in the fourth quarter worth approximately $1,576,000.

Blue Owl Technology Finance Company Profile

Blue Owl Technology Finance NYSE: OTF is a publicly traded business development company (BDC) sponsored by alternative asset manager Blue Owl. The firm focuses on providing customized debt and structured capital solutions to technology and technology-enabled companies, with an emphasis on growth-stage and middle-market borrowers. As a BDC, its primary activities include originating, structuring and managing private credit investments tailored to the financing needs of fast-growing businesses.

Its investment approach typically centers on direct lending and credit-oriented products, including senior secured loans, unitranche and subordinated debt, as well as selective equity-linked instruments and structured financings.

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