Blue Owl Technology Finance (NYSE:OTF) Sets New 1-Year Low - Time to Sell?

Key Points

• Blue Owl Technology Finance (NYSE: OTF) hit a new 52-week low, trading as low as $10.62 amid heavy volume, reflecting continued weakness in the stock.
• Analysts have become more cautious, with multiple firms trimming price targets and Zacks downgrading the stock to strong sell; the consensus rating is now Hold with an average target price of $13.40.
• The company missed quarterly EPS estimates, but it raised its dividend to $0.35 per quarter, implying a 13.1% annualized yield, and also has an active $300 million share repurchase program.

Blue Owl Technology Finance Corp. (NYSE:OTF - Get Free Report) shares reached a new 52-week low during trading on Wednesday . The company traded as low as $10.62 and last traded at $10.67, with a volume of 1899504 shares changing hands. The stock had previously closed at $10.63.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. 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 report on Monday, May 18th. 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 report on Wednesday, April 22nd. Keefe, Bruyette & Woods dropped their price objective on 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. Truist Financial dropped their price objective on Blue Owl Technology Finance from $16.00 to $15.00 and set a "buy" rating on the stock in a report on Tuesday, May 19th. Finally, Zacks Research downgraded Blue Owl Technology Finance from a "hold" rating to a "strong sell" rating in a report on Tuesday, May 12th. Three research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Blue Owl Technology Finance has an average rating of "Hold" and an average target price of $13.40.

Blue Owl Technology Finance Trading Up 0.4%

The business has a 50 day moving average of $11.55. The stock has a market cap of $4.94 billion and a PE ratio of 11.86.

Blue Owl Technology Finance (NYSE:OTF - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The company reported $0.29 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.31 by ($0.02). The firm had revenue of $325.94 million for 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 previous year, the company earned $0.41 EPS. On average, sell-side analysts predict that Blue Owl Technology Finance Corp. will post 1.26 earnings per share for the current fiscal year.

Blue Owl Technology Finance Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors 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 dividend on an annualized basis and a yield of 13.1%. This is a boost from Blue Owl Technology Finance's previous quarterly dividend of $0.05. Blue Owl Technology Finance's dividend payout ratio (DPR) is 155.56%.

Blue Owl Technology Finance declared that its board has initiated a share repurchase program on Wednesday, February 18th that permits the company to buyback $300.00 million in outstanding shares. This buyback authorization permits the company to buy up to 5.1% of its stock through open market purchases. Stock buyback programs are often a sign that the company's leadership believes its stock is undervalued.

Insider Transactions at Blue Owl Technology Finance

In other news, Director Melissa Weiler purchased 10,000 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The shares were purchased at an average price of $10.90 per share, for a total transaction of $109,000.00. Following the purchase, the director directly owned 10,000 shares of the company's stock, valued at $109,000. This represents a ∞ increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.05% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Requisite Capital Management LLC lifted its position in Blue Owl Technology Finance by 141.2% during the 4th quarter. Requisite Capital Management LLC now owns 674,624 shares of the company's stock worth $10,078,000 after acquiring an additional 394,895 shares during the period. Stephens Inc. AR acquired a new stake in Blue Owl Technology Finance during the 4th quarter worth approximately $8,220,000. Bayshore Capital Advisors LLC acquired a new stake in Blue Owl Technology Finance during the 4th quarter worth approximately $2,220,000. Apollon Wealth Management LLC lifted its position in Blue Owl Technology Finance by 260.2% during the 4th quarter. Apollon Wealth Management LLC now owns 72,751 shares of the company's stock worth $1,058,000 after acquiring an additional 52,551 shares during the period. Finally, Denali Advisors LLC acquired a new stake in Blue Owl Technology Finance during the 4th quarter worth approximately $1,576,000.

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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