Eric Kaye Acquires 1,000 Shares of Blue Owl Capital (NYSE:OBDC) Stock

Key Points

• Director Eric Kaye purchased 1,000 shares of Blue Owl Capital on Feb. 25 at an average price of $11.91, increasing his stake to 20,144 shares (about $239,915) — transaction disclosed in an SEC filing.
• The board authorized a $300.00 million buyback (up to ~5.1% of shares) and the company paid a quarterly dividend of $0.37 (annualized $1.48, yield 13.2%), though the payout ratio is high at 119.35%.
• Blue Owl reported quarterly EPS of $0.36 (beating by $0.01) while revenue missed estimates; the stock trades near $11.19 with a market cap of $5.56 billion and a consensus analyst rating of "Moderate Buy" with an average target of $13.71.

Blue Owl Capital Corporation (NYSE:OBDC - Get Free Report) Director Eric Kaye bought 1,000 shares of Blue Owl Capital stock in a transaction dated Wednesday, February 25th. The stock was purchased at an average price of $11.91 per share, with a total value of $11,910.00. Following the purchase, the director directly owned 20,144 shares in the company, valued at approximately $239,915.04. This trade represents a 5.22% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available through this link.

Blue Owl Capital Price Performance

Shares of OBDC traded down $0.09 during trading hours on Monday, reaching $11.19. The company had a trading volume of 3,634,438 shares, compared to its average volume of 5,999,649. The firm has a 50 day simple moving average of $11.30 and a 200-day simple moving average of $12.10. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 1.26. The company has a market capitalization of $5.56 billion, a price-to-earnings ratio of 9.02 and a beta of 0.65. Blue Owl Capital Corporation has a 12-month low of $10.52 and a 12-month high of $15.19.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last announced its quarterly earnings results on Wednesday, February 18th. The company reported $0.36 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.35 by $0.01. The business had revenue of $439.50 million during the quarter, compared to the consensus estimate of $454.38 million. Blue Owl Capital had a net margin of 33.89% and a return on equity of 10.07%. Research analysts expect that Blue Owl Capital Corporation will post 1.36 earnings per share for the current year.

Blue Owl Capital declared that its board has authorized a stock buyback plan on Wednesday, February 18th that allows the company to buyback $300.00 million in shares. This buyback authorization allows the company to repurchase up to 5.1% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Blue Owl Capital Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were issued a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a dividend yield of 13.2%. The ex-dividend date was Tuesday, March 31st. Blue Owl Capital's dividend payout ratio (DPR) is currently 119.35%.

Institutional Investors Weigh In On Blue Owl Capital

Several hedge funds have recently modified their holdings of OBDC. IFP Advisors Inc boosted its position in shares of Blue Owl Capital by 79.6% in the third quarter. IFP Advisors Inc now owns 2,096 shares of the company's stock worth $27,000 after acquiring an additional 929 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its position in shares of Blue Owl Capital by 166.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 2,115 shares of the company's stock worth $27,000 after acquiring an additional 1,320 shares during the last quarter. Atlantic Union Bankshares Corp acquired a new stake in shares of Blue Owl Capital in the third quarter worth approximately $28,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in shares of Blue Owl Capital in the third quarter worth approximately $30,000. Finally, AG Campbell Advisory LLC acquired a new stake in shares of Blue Owl Capital in the fourth quarter worth approximately $36,000. 42.83% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on OBDC shares. Keefe, Bruyette & Woods dropped their target price on shares of Blue Owl Capital from $12.50 to $12.00 and set a "market perform" rating for the company in a report on Thursday, April 16th. Wall Street Zen upgraded shares of Blue Owl Capital from a "sell" rating to a "hold" rating in a report on Saturday, March 21st. Royal Bank Of Canada dropped their target price on shares of Blue Owl Capital from $14.00 to $13.00 and set an "outperform" rating for the company in a report on Friday, February 20th. Zacks Research upgraded shares of Blue Owl Capital from a "strong sell" rating to a "hold" rating in a report on Monday, February 23rd. Finally, Truist Financial decreased their price target on shares of Blue Owl Capital from $16.00 to $15.00 and set a "buy" rating on the stock in a research note on Monday, February 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $13.71.

About Blue Owl Capital

Blue Owl Capital Corporation NYSE: OBDC is a publicly traded business development company sponsored by Blue Owl Capital, a global alternative asset manager. Launched in 2020, the firm provides customized financing solutions to middle-market companies across various industries. As an externally managed BDC, Blue Owl Capital Corporation leverages the deep credit‐investment capabilities of its sponsor to deliver flexible capital tailored to the needs of growing businesses.

The company's investment activities span a range of private credit products, including first‐lien senior secured loans, unitranche facilities, second‐lien financings, mezzanine debt, and minority equity co-investments.

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