Blue Owl Technology Finance (NYSE:OTF) Reaches New 1-Year Low - What's Next?

Key Points

• Blue Owl Technology Finance hit a new 52-week low, trading as low as $10.47, as shares fell about 1.6% amid elevated volume.
• Analysts have turned more cautious, with several firms cutting price targets; the stock now carries a Moderate Buy consensus and an average target of $13.40.
• The company recently raised its quarterly dividend to $0.35 per share, boosting the annualized yield to about 13.3%, while insiders also purchased shares in recent weeks.

Blue Owl Technology Finance Corp. (NYSE:OTF - Get Free Report) shares hit a new 52-week low on Monday . The stock traded as low as $10.47 and last traded at $10.4870, with a volume of 2110624 shares changing hands. The stock had previously closed at $10.66.

Analyst Upgrades and Downgrades

A number of analysts have commented on the company. Truist Financial reduced their target price on Blue Owl Technology Finance from $16.00 to $15.00 and set a "buy" rating for the company in a report on Tuesday, May 19th. Wells Fargo & Company lowered 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. Royal Bank Of Canada dropped their price objective on Blue Owl Technology Finance from $14.00 to $12.00 and set a "sector perform" rating on the stock in a research report on Monday, May 18th. Keefe, Bruyette & Woods reduced their price objective on 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, Zacks Research raised Blue Owl Technology Finance from a "strong sell" rating to a "hold" rating in a research report on Wednesday, June 10th. Three research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, Blue Owl Technology Finance currently has an average rating of "Moderate Buy" and an average price target of $13.40.

Blue Owl Technology Finance Stock Down 1.6%

The stock has a market cap of $4.85 billion and a PE ratio of 11.65. The firm has a 50 day simple moving average of $11.16.

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 analysts' consensus estimates of $0.31 by ($0.02). The firm had revenue of $222.12 million for the quarter. Blue Owl Technology Finance had a net margin of 32.78% and a return on equity of 7.43%. During the same period in the previous year, the business posted $0.41 EPS. Equities analysts anticipate that Blue Owl Technology Finance Corp. will post 1.26 earnings per share for the current year.

Blue Owl Technology Finance Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th will be paid a dividend of $0.35 per share. The ex-dividend date is Tuesday, June 30th. This represents a $1.40 annualized dividend and a dividend yield of 13.3%. This is a boost from Blue Owl Technology Finance's previous quarterly dividend of $0.05. Blue Owl Technology Finance's dividend payout ratio is 155.56%.

Insiders Place Their Bets

In related news, Director Chris Temple acquired 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, for a total transaction of $74,970.00. Following the purchase, the director owned 12,000 shares in the company, valued at $128,520. The trade was a 140.00% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Melissa Weiler bought 10,000 shares of Blue Owl Technology Finance stock in a transaction that occurred on Wednesday, May 13th. The stock was purchased 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. This represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders purchased 18,000 shares of company stock worth $194,710. 0.05% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of OTF. Orange County Employees Retirement System purchased a new position in shares of Blue Owl Technology Finance in the fourth quarter valued at about $116,497,000. Requisite Capital Management LLC grew its position in shares of Blue Owl Technology Finance by 141.2% during the fourth quarter. Requisite Capital Management LLC now owns 674,624 shares of the company's stock worth $10,078,000 after purchasing an additional 394,895 shares in the last quarter. Bayshore Capital Advisors LLC purchased a new stake in shares of Blue Owl Technology Finance during the fourth quarter worth about $2,220,000. Stephens Inc. AR bought a new stake in Blue Owl Technology Finance during the 4th quarter valued at approximately $8,220,000. Finally, Caz Investments LP raised its stake in Blue Owl Technology Finance by 72.2% during the 4th quarter. Caz Investments LP now owns 1,159,339 shares of the company's stock valued at $16,857,000 after purchasing an additional 486,172 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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