Blue Owl Technology Finance (NYSE:OTF) Reaches New 12-Month Low - What's Next?

Key Points

• 52‑week low: Blue Owl Technology Finance (OTF) hit a new 52‑week low of $10.83 Monday, last trading near $10.82 on heavy volume; the stock has a market cap of about $5.01 billion and a PE of 6.38.
• Earnings shortfall: OTF reported quarterly EPS of $0.30 (vs. $0.32 expected) and revenue of $223.5M versus $326.3M estimated, though analysts still show a consensus "Moderate Buy" with a $14.50 price target.
• Capital returns and insider move: The company raised its quarterly dividend to $0.35 (annualized yield ~12.9%) and authorized a $300M buyback (up to ~5.1% of shares), while a director recently purchased 5,000 shares.

Blue Owl Technology Finance Corp. (NYSE:OTF - Get Free Report)'s stock price hit a new 52-week low on Monday . The company traded as low as $10.83 and last traded at $10.8150, with a volume of 2029221 shares trading hands. The stock had previously closed at $11.10.

Wall Street Analyst Weigh In

OTF has been the topic of a number of analyst reports. Zacks Research upgraded shares of Blue Owl Technology Finance from a "strong sell" rating to a "hold" rating in a research report on Monday, January 26th. Keefe, Bruyette & Woods cut their price target on shares of Blue Owl Technology Finance from $16.00 to $13.00 and set a "market perform" rating on the stock in a research report on Monday, February 23rd. Wells Fargo & Company dropped their price objective on Blue Owl Technology Finance from $15.00 to $13.00 and set an "overweight" rating on the stock in a research note on Friday, February 20th. Citizens Jmp dropped their price objective on 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. Finally, Truist Financial dropped their price objective on Blue Owl Technology Finance from $17.00 to $16.00 and set a "buy" rating on the stock in a research note on Monday, February 23rd. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $14.50.

Blue Owl Technology Finance Price Performance

The company has a market cap of $5.01 billion and a PE ratio of 6.38. The stock has a fifty day moving average of $11.87.

Blue Owl Technology Finance (NYSE:OTF - Get Free Report) last announced its earnings results on Wednesday, February 18th. The company reported $0.30 EPS for the quarter, missing the consensus estimate of $0.32 by ($0.02). The company had revenue of $223.52 million for the quarter, compared to analyst estimates of $326.27 million. Blue Owl Technology Finance had a return on equity of 6.91% and a net margin of 62.89%. Equities research analysts forecast that Blue Owl Technology Finance Corp. will post 1.31 earnings per share for the current year.

Blue Owl Technology Finance Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st were issued a dividend of $0.35 per share. This is an increase from Blue Owl Technology Finance's previous quarterly dividend of $0.05. The ex-dividend date was Tuesday, March 31st. This represents a $1.40 annualized dividend and a yield of 12.9%. Blue Owl Technology Finance's dividend payout ratio is 82.35%.

Blue Owl Technology Finance announced that its board has initiated a stock buyback plan on Wednesday, February 18th that permits the company to repurchase $300.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 5.1% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its stock is undervalued.

Insider Activity

In other news, Director Chris Temple purchased 5,000 shares of the company's stock in a transaction on Wednesday, February 25th. The shares were purchased at an average price of $11.49 per share, with a total value of $57,450.00. Following the purchase, the director directly owned 5,000 shares of the company's stock, valued at $57,450. This trade represents a ∞ increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 0.05% of the stock is owned by corporate insiders.

Institutional Trading of Blue Owl Technology Finance

Several hedge funds and other institutional investors have recently modified their holdings of OTF. NewEdge Wealth LLC raised its holdings in shares of Blue Owl Technology Finance by 3.3% in the fourth quarter. NewEdge Wealth LLC now owns 69,925 shares of the company's stock valued at $1,017,000 after purchasing an additional 2,218 shares during the last quarter. Lido Advisors LLC raised its holdings in shares of Blue Owl Technology Finance by 22.6% in the fourth quarter. Lido Advisors LLC now owns 14,545 shares of the company's stock valued at $208,000 after purchasing an additional 2,683 shares during the last quarter. Newbridge Financial Services Group Inc. acquired a new stake in shares of Blue Owl Technology Finance in the fourth quarter valued at approximately $44,000. Blair William & Co. IL raised its holdings in shares of Blue Owl Technology Finance by 41.4% in the fourth quarter. Blair William & Co. IL now owns 14,807 shares of the company's stock valued at $215,000 after purchasing an additional 4,334 shares during the last quarter. Finally, Janney Montgomery Scott LLC raised its holdings in shares of Blue Owl Technology Finance by 31.6% in the first quarter. Janney Montgomery Scott LLC now owns 33,321 shares of the company's stock valued at $413,000 after purchasing an additional 8,010 shares during the last quarter.

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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