Blue Owl Technology Finance (NYSE:OTF) Hits New 52-Week Low - Should You Sell?

Key Points

• Blue Owl Technology Finance hit a new 52-week low, trading as low as $10.64 as investors continued to pressure the stock.
• Analysts remain mixed: the stock has an average Hold rating and a consensus price target of $13.40, though some firms cut targets and one downgraded it to strong sell.
• The company recently raised its quarterly dividend to $0.35 per share, but it also missed earnings estimates in its latest report, and the dividend payout ratio is elevated at 155.56%.

Shares of Blue Owl Technology Finance Corp. (NYSE:OTF - Get Free Report) reached a new 52-week low on Thursday . The stock traded as low as $10.64 and last traded at $10.70, with a volume of 501698 shares trading hands. The stock had previously closed at $10.92.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the stock. Zacks Research lowered shares of Blue Owl Technology Finance from a "hold" rating to a "strong sell" rating in a research note on Tuesday, May 12th. Wells Fargo & Company reduced their price target 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. Truist Financial reduced their price target on shares of Blue Owl Technology Finance from $16.00 to $15.00 and set a "buy" rating for the company in a report on Tuesday. 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 for the company in a report on Tuesday, May 12th. Finally, Citizens Jmp reduced their price target on shares of Blue Owl Technology Finance from $17.00 to $16.00 and set a "market outperform" rating for the company in a report on Wednesday, April 22nd. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $13.40.

Blue Owl Technology Finance Stock Performance

The company has a market capitalization of $4.96 billion and a price-to-earnings ratio of 11.92. The stock has a fifty day moving average price of $11.62.

Blue Owl Technology Finance (NYSE:OTF - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported $0.29 earnings per share for the quarter, missing the consensus estimate of $0.31 by ($0.02). The company had revenue of $325.94 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 in the prior year, the firm earned $0.41 earnings per share. As a group, research analysts predict that Blue Owl Technology Finance Corp. will post 1.26 earnings per share for the current year.

Blue Owl Technology Finance Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be issued a $0.35 dividend. The ex-dividend date of this dividend is Tuesday, June 30th. This is an increase from Blue Owl Technology Finance's previous quarterly dividend of $0.05. This represents a $1.40 annualized dividend and a yield of 13.1%. Blue Owl Technology Finance's dividend payout ratio is currently 155.56%.

Blue Owl Technology Finance announced that its Board of Directors has authorized a share buyback plan on Wednesday, February 18th that allows the company to repurchase $300.00 million in shares. This repurchase authorization allows the company to repurchase up to 5.1% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's management believes its shares are undervalued.

Insider Transactions at Blue Owl Technology Finance

In other Blue Owl Technology Finance news, Director Chris Temple purchased 5,000 shares of the business's stock in a transaction on Wednesday, February 25th. The stock was bought at an average cost of $11.49 per share, with a total value of $57,450.00. Following the acquisition, the director owned 5,000 shares of the company's stock, valued at $57,450. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Melissa Weiler purchased 10,000 shares of the business's stock in a transaction on Wednesday, May 13th. The stock was acquired at an average cost of $10.90 per share, with a total value of $109,000.00. Following the completion of the acquisition, the director directly owned 10,000 shares in the company, valued at $109,000. The trade was a ∞ increase in their position. The SEC filing for this purchase provides additional information. Insiders acquired a total of 17,000 shares of company stock valued at $188,630 over the last three months. 0.05% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Blue Owl Technology Finance

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Bank of America Corp DE lifted its holdings in Blue Owl Technology Finance by 54.5% in the 1st 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 acquired a new stake in Blue Owl Technology Finance during the 1st quarter worth about $200,000. Pine Ridge Advisers LLC raised its holdings in Blue Owl Technology Finance by 100.0% during the 1st quarter. Pine Ridge Advisers LLC now owns 1,022,732 shares of the company's stock worth $12,672,000 after buying an additional 511,368 shares during the period. California State Teachers Retirement System acquired a new stake in Blue Owl Technology Finance during the 1st quarter worth about $250,556,000. Finally, Rivernorth Capital Management LLC raised its holdings in Blue Owl Technology Finance by 12.5% during the 1st quarter. Rivernorth Capital Management LLC now owns 2,176,269 shares of the company's stock worth $26,964,000 after buying an additional 241,543 shares during the period.

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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