Blue Owl Technology Finance (NYSE:OTF) Sets New 1-Year Low After Analyst Downgrade

Key Points

• Blue Owl Technology Finance hit a new 52-week low after Keefe, Bruyette & Woods cut its price target from $13 to $12 and kept a market perform rating. The stock traded as low as $10.67 during the session.
• Analyst sentiment remains mixed, with multiple firms trimming targets but the overall consensus still at Moderate Buy and a $14 average price target. Three analysts rate the stock a Buy and two rate it Hold.
• The company recently raised its quarterly dividend to $0.35 per share, implying a 12.9% annualized yield, and it also has a $300 million share repurchase authorization in place.

Blue Owl Technology Finance Corp. (NYSE:OTF - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Tuesday after Keefe, Bruyette & Woods lowered their price target on the stock from $13.00 to $12.00. Keefe, Bruyette & Woods currently has a market perform rating on the stock. Blue Owl Technology Finance traded as low as $10.67 and last traded at $10.76, with a volume of 167256 shares. The stock had previously closed at $10.76.

OTF has been the subject of a number of other 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. Truist Financial cut their price objective on shares of Blue Owl Technology Finance from $17.00 to $16.00 and set a "buy" rating for the company in a research report on Monday, February 23rd. Citizens Jmp dropped 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 research note on Wednesday, April 22nd. Finally, Wells Fargo & Company cut 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. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $14.00.

Insider Activity

In related news, Director Chris Temple purchased 5,000 shares of Blue Owl Technology Finance stock in a transaction dated Wednesday, February 25th. The stock was purchased at an average cost of $11.49 per share, for a total transaction of $57,450.00. Following the completion of the purchase, the director directly owned 5,000 shares of the company's stock, valued at $57,450. The trade was a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 0.05% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Blue Owl Technology Finance

A number of hedge funds have recently added to or reduced their stakes in the stock. QP Wealth Management LLC purchased a new position in shares of Blue Owl Technology Finance in the 4th quarter worth $168,000. Wealth Enhancement Advisory Services LLC boosted its position in Blue Owl Technology Finance by 137.9% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 73,992 shares of the company's stock worth $1,044,000 after purchasing an additional 42,888 shares during the last quarter. Norden Group LLC purchased a new position in Blue Owl Technology Finance in the fourth quarter worth about $169,000. Pallas Capital Advisors LLC grew its stake in shares of Blue Owl Technology Finance by 642.4% during the 4th quarter. Pallas Capital Advisors LLC now owns 85,480 shares of the company's stock valued at $1,243,000 after purchasing an additional 73,966 shares during the period. Finally, Generali Investments CEE investicni spolecnost a.s. increased its position in shares of Blue Owl Technology Finance by 121.0% during the 4th quarter. Generali Investments CEE investicni spolecnost a.s. now owns 48,426 shares of the company's stock valued at $704,000 after purchasing an additional 26,510 shares during the last quarter.

Blue Owl Technology Finance Trading Up 0.7%

The company has a 50 day moving average of $11.72. The firm has a market cap of $5.01 billion and a PE ratio of 12.03.

Blue Owl Technology Finance (NYSE:OTF - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported $0.29 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.31 by ($0.02). The business had revenue of $325.94 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 last year, the business earned $0.41 EPS. Research analysts predict that Blue Owl Technology Finance Corp. will post 1.31 EPS for the current year.

Blue Owl Technology Finance Increases Dividend

The business also recently announced 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 represents a $1.40 dividend on an annualized basis and a yield of 12.9%. This is an increase from Blue Owl Technology Finance's previous quarterly dividend of $0.05. Blue Owl Technology Finance's payout ratio is 155.56%.

Blue Owl Technology Finance declared that its board has authorized a stock buyback plan on Wednesday, February 18th that authorizes the company to buyback $300.00 million in outstanding shares. This buyback authorization authorizes the company to repurchase up to 5.1% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board 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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