Blue Owl Technology Finance Corp. (NYSE:OTF) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Blue Owl Technology Finance has a “Moderate Buy” consensus rating from six analysts, split evenly between buy and hold recommendations. The average 12-month price target is $13.40, though several firms recently lowered their targets.
• Insiders purchased 18,000 shares worth approximately $194,710 over the past three months, while several institutional investors also increased their holdings.
• OTF shares opened at $9.98, near their 12-month low, after the company missed quarterly EPS estimates. The company raised its quarterly dividend to $0.35 per share, implying a 14% annualized yield, but its payout ratio stands at 155.56%.

Blue Owl Technology Finance Corp. (NYSE:OTF - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the six ratings firms that are currently covering the company, MarketBeat reports. Three equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average 12-month target price among analysts that have updated their coverage on the stock in the last year is $13.40.

A number of research analysts have recently issued reports on OTF shares. Keefe, Bruyette & Woods reduced their price target on shares of Blue Owl Technology Finance from $13.00 to $12.00 and set a "market perform" rating on the stock in a research report on Tuesday, May 12th. Wells Fargo & Company lowered their price objective on shares of Blue Owl Technology Finance from $13.00 to $12.00 and set an "overweight" rating for the company in a research report on Friday, May 8th. Citizens Jmp dropped their price objective on shares of Blue Owl Technology Finance from $17.00 to $16.00 and set a "market outperform" rating on the stock in a research note on Wednesday, April 22nd. Truist Financial dropped their price objective on shares of Blue Owl Technology Finance from $16.00 to $15.00 and set a "buy" rating on the stock in a research note on Tuesday, May 19th. Finally, Royal Bank Of Canada cut their target price on shares of Blue Owl Technology Finance from $14.00 to $12.00 and set a "sector perform" rating on the stock in a report on Monday, May 18th.

Insider Activity at Blue Owl Technology Finance

In related news, Director Melissa Weiler acquired 10,000 shares of the stock in a transaction that occurred on Wednesday, May 13th. The stock was purchased at an average cost of $10.90 per share, for a total transaction of $109,000.00. Following the purchase, the director directly owned 10,000 shares in the company, valued at $109,000. This represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Chris Temple acquired 7,000 shares of the stock in a transaction that occurred on Friday, May 22nd. The shares were bought at an average price of $10.71 per share, with a total value of $74,970.00. Following the completion of the purchase, the director owned 12,000 shares in the company, valued at $128,520. The trade was a 140.00% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders purchased 18,000 shares of company stock worth $194,710. Company insiders own 0.05% of the company's stock.

Hedge Funds Weigh In On Blue Owl Technology Finance

Several hedge funds and other institutional investors have recently modified their holdings of the company. Pettinga Financial Advisors LLC grew its position in shares of Blue Owl Technology Finance by 10.9% during the second quarter. Pettinga Financial Advisors LLC now owns 381,161 shares of the company's stock worth $3,945,000 after acquiring an additional 37,588 shares during the last quarter. Hennion & Walsh Asset Management Inc. lifted its position in Blue Owl Technology Finance by 161.3% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 58,210 shares of the company's stock valued at $602,000 after purchasing an additional 35,932 shares during the last quarter. Prota Financial LLC lifted its position in Blue Owl Technology Finance by 46.8% in the 2nd quarter. Prota Financial LLC now owns 87,842 shares of the company's stock valued at $936,000 after purchasing an additional 27,997 shares during the last quarter. Confluence Investment Management LLC bought a new stake in Blue Owl Technology Finance in the 2nd quarter valued at about $322,000. Finally, PVG Asset Management Corp acquired a new position in Blue Owl Technology Finance during the 1st quarter valued at about $770,000.

Blue Owl Technology Finance Trading Up 1.2%

OTF stock opened at $9.98 on Friday. The stock's 50 day simple moving average is $10.55 and its 200 day simple moving average is $11.56. Blue Owl Technology Finance has a 12-month low of $9.75 and a 12-month high of $15.82. The firm has a market cap of $4.62 billion and a P/E ratio of 11.09.

Blue Owl Technology Finance (NYSE:OTF - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The company reported $0.29 EPS for the quarter, missing analysts' consensus estimates of $0.31 by ($0.02). Blue Owl Technology Finance had a return on equity of 7.43% and a net margin of 32.78%.The business had revenue of $222.12 million during the quarter. During the same period in the previous year, the company posted $0.41 earnings per share. On average, research analysts forecast that Blue Owl Technology Finance will post 1.26 EPS for the current fiscal year.

Blue Owl Technology Finance Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were given a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a dividend yield of 14.0%. The ex-dividend date was 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 payout ratio is currently 155.56%.

About Blue Owl Technology Finance

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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