Blue Owl Technology Finance Corp. (NYSE:OTF) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Blue Owl Technology Finance has a consensus analyst rating of “Moderate Buy” from six brokerages, with an average 1-year price target of $13.40. The latest analyst updates included several target price cuts, though opinions were split evenly between buy and hold.
• Insiders have recently been buying shares: directors Chris Temple and Melissa Weiler purchased stock in May, totaling 18,000 shares worth about $194,710. Insider ownership remains small at 0.05%.
• The company recently raised its quarterly dividend to $0.35 per share, translating to a 13.6% annualized yield. However, its latest earnings came in below estimates, with quarterly EPS of $0.29 versus the expected $0.31.

Blue Owl Technology Finance Corp. (NYSE:OTF - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the six brokerages that are currently covering the stock, Marketbeat.com reports. Three analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $13.40.

Several equities analysts have weighed in on the stock. Keefe, Bruyette & Woods lowered 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 report on Tuesday, May 12th. Royal Bank Of Canada lowered 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 research note on Monday, May 18th. Citizens Jmp cut their price target on Blue Owl Technology Finance from $17.00 to $16.00 and set a "market outperform" rating for the company in a research note on Wednesday, April 22nd. Wells Fargo & Company decreased their price target on Blue Owl Technology Finance from $13.00 to $12.00 and set an "overweight" rating on the stock in a report on Friday, May 8th. Finally, Zacks Research raised Blue Owl Technology Finance from a "strong sell" rating to a "hold" rating in a research note on Wednesday, June 10th.

Insider Buying and Selling

In related news, Director Chris Temple bought 7,000 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The stock was bought at an average cost 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 of the company's stock, valued at approximately $128,520. The trade was a 140.00% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Melissa Weiler purchased 10,000 shares of the firm's stock in a transaction on Wednesday, May 13th. The stock was bought at an average price of $10.90 per share, for a total transaction of $109,000.00. Following the purchase, the director owned 10,000 shares in the company, valued at approximately $109,000. This represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders have acquired 18,000 shares of company stock valued at $194,710. Insiders own 0.05% of the company's stock.

Institutional Investors Weigh In On Blue Owl Technology Finance

A number of hedge funds have recently made changes to their positions in OTF. Newbridge Financial Services Group Inc. purchased a new position in Blue Owl Technology Finance during the 4th quarter valued at approximately $44,000. Clearstead Advisors LLC purchased a new position in shares of Blue Owl Technology Finance in the fourth quarter valued at $124,000. Abel Hall LLC purchased a new position in shares of Blue Owl Technology Finance in the first quarter valued at $124,000. Kestra Advisory Services LLC bought a new stake in Blue Owl Technology Finance in the fourth quarter worth $128,000. Finally, Cornerstone Partners Capital Management LLC purchased a new stake in Blue Owl Technology Finance during the fourth quarter valued at $146,000.

Blue Owl Technology Finance Stock Performance

NYSE:OTF traded down $0.05 during mid-day trading on Tuesday, hitting $10.32. 1,039,276 shares of the company traded hands, compared to its average volume of 2,207,752. The company has a fifty day moving average of $10.89. The company has a market cap of $4.77 billion and a price-to-earnings ratio of 11.47. Blue Owl Technology Finance has a one year low of $10.13 and a one year high of $15.82.

Blue Owl Technology Finance (NYSE:OTF - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported $0.29 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.02). The company 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 quarter in the prior year, the business earned $0.41 earnings per share. As a group, equities research analysts expect that Blue Owl Technology Finance will post 1.26 EPS for the current fiscal year.

Blue Owl Technology Finance Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be paid a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 13.6%. 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 currently 155.56%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.