Blue Owl Technology Finance Corp. (NYSE:OTF) Receives Average Rating of "Hold" from Brokerages

Key Points

• Blue Owl Technology Finance Corp. received an average analyst rating of "Hold" from six brokerages, with a mixed breakdown of one sell, two hold, and three buy ratings. The average 1-year price target is $13.40.
• The company recently raised its quarterly dividend to $0.35 per share, which annualizes to $1.40 and implies a 12.7% yield. It also has an active $300 million share repurchase program.
• Recent results showed earnings of $0.29 per share, missing expectations of $0.31, while insiders bought shares and several institutions increased their stakes. The stock last traded at $11.04, near its 52-week low.

Shares of Blue Owl Technology Finance Corp. (NYSE:OTF - Get Free Report) have been assigned an average rating of "Hold" from the six brokerages that are covering the stock, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, two have given a hold recommendation and three have assigned a buy recommendation to the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $13.40.

A number of equities research analysts have recently weighed in on the stock. 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 report on Friday, May 8th. Keefe, Bruyette & Woods decreased their target price 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. Royal Bank Of Canada lowered their price target 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 note on Monday, May 18th. Zacks Research lowered shares of Blue Owl Technology Finance from a "hold" rating to a "strong sell" rating in a research report on Tuesday, May 12th. Finally, Truist Financial decreased their price objective on Blue Owl Technology Finance from $16.00 to $15.00 and set a "buy" rating on the stock in a report on Tuesday, May 19th.

Insider Buying and Selling

In other news, Director Melissa Weiler bought 10,000 shares of the business's stock in a transaction dated Wednesday, May 13th. The shares were purchased at an average price of $10.90 per share, for a total transaction of $109,000.00. Following the completion of the acquisition, the director owned 10,000 shares of the company's stock, valued at approximately $109,000. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Chris Temple bought 7,000 shares of the business's stock in a transaction dated Friday, May 22nd. The stock was purchased at an average price of $10.71 per share, for a total transaction of $74,970.00. Following the acquisition, the director directly owned 12,000 shares of the company's stock, valued at approximately $128,520. The trade was a 140.00% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired a total of 18,000 shares of company stock worth $194,710 over the last ninety days. Insiders own 0.05% of the company's stock.

Institutional Investors Weigh In On Blue Owl Technology Finance

Several institutional investors have recently added to or reduced their stakes in OTF. NewEdge Advisors LLC grew its holdings in Blue Owl Technology Finance by 271.1% in the 1st quarter. NewEdge Advisors LLC now owns 63,378 shares of the company's stock worth $785,000 after acquiring an additional 46,300 shares during the last quarter. Bank of America Corp DE raised its stake in shares of Blue Owl Technology Finance by 54.5% during the first quarter. Bank of America Corp DE now owns 1,098,349 shares of the company's stock valued at $13,609,000 after acquiring an additional 387,404 shares during the last quarter. Ashton Thomas Securities LLC purchased a new stake in shares of Blue Owl Technology Finance during the first quarter worth about $200,000. Pine Ridge Advisers LLC grew its stake in shares of Blue Owl Technology Finance by 100.0% in the first quarter. Pine Ridge Advisers LLC now owns 1,022,732 shares of the company's stock worth $12,672,000 after purchasing an additional 511,368 shares during the last quarter. Finally, California State Teachers Retirement System bought a new stake in shares of Blue Owl Technology Finance in the first quarter worth about $250,556,000.

Blue Owl Technology Finance Price Performance

Shares of Blue Owl Technology Finance stock opened at $11.04 on Friday. The company has a market cap of $5.11 billion and a price-to-earnings ratio of 12.26. The firm's 50-day moving average price is $11.23. Blue Owl Technology Finance has a 12 month low of $10.48 and a 12 month high of $21.62.

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

Blue Owl Technology Finance Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be given a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 12.7%. 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 is 155.56%.

Blue Owl Technology Finance declared that its board has initiated a stock repurchase program on Wednesday, February 18th that authorizes the company to buyback $300.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 5.1% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

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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