Blue Owl Capital Corporation $OBDC is Brown University's Largest Position

Key Points

• Brown University reduced its stake in Blue Owl by 25.8% in Q4, yet the position remains its largest at about 28.1% of Brown's holdings and was worth roughly $40.1 million (≈0.63% of Blue Owl) at quarter-end.
• Blue Owl pays a quarterly dividend of $0.37 (annualized yield ~13.0%) with a payout ratio around 119%, and its board approved a $300 million share buyback program (up to ~5.1% of shares).
• The firm slightly beat EPS estimates ($0.36 vs. $0.35) but missed revenue expectations; it trades at a P/E of ~9.15 with a $5.64B market cap, and analysts' consensus rating is "Moderate Buy" with a $13.71 target.

Brown University lowered its holdings in shares of Blue Owl Capital Corporation (NYSE:OBDC - Free Report) by 25.8% in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 3,224,863 shares of the company's stock after selling 1,124,000 shares during the quarter. Blue Owl Capital makes up approximately 28.1% of Brown University's holdings, making the stock its biggest position. Brown University owned about 0.63% of Blue Owl Capital worth $40,085,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. IFP Advisors Inc increased its position in shares of Blue Owl Capital by 79.6% during the 3rd quarter. IFP Advisors Inc now owns 2,096 shares of the company's stock valued at $27,000 after purchasing an additional 929 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its position in shares of Blue Owl Capital by 166.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 2,115 shares of the company's stock valued at $27,000 after purchasing an additional 1,320 shares during the last quarter. Atlantic Union Bankshares Corp purchased a new stake in shares of Blue Owl Capital during the 3rd quarter valued at about $28,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC purchased a new stake in shares of Blue Owl Capital during the 3rd quarter valued at about $30,000. Finally, Assetmark Inc. purchased a new stake in shares of Blue Owl Capital during the 3rd quarter valued at about $38,000. Hedge funds and other institutional investors own 42.83% of the company's stock.

Blue Owl Capital Trading Up 1.4%

OBDC stock opened at $11.35 on Wednesday. Blue Owl Capital Corporation has a 1-year low of $10.52 and a 1-year high of $15.19. The company has a debt-to-equity ratio of 1.26, a current ratio of 1.17 and a quick ratio of 1.17. The company has a market capitalization of $5.64 billion, a price-to-earnings ratio of 9.15 and a beta of 0.65. The business has a 50 day simple moving average of $11.29 and a two-hundred day simple moving average of $12.09.

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

Blue Owl Capital Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st were paid a $0.37 dividend. This represents a $1.48 annualized dividend and a yield of 13.0%. The ex-dividend date was Tuesday, March 31st. Blue Owl Capital's dividend payout ratio is presently 119.35%.

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

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on OBDC shares. Royal Bank Of Canada reduced 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 raised shares of Blue Owl Capital from a "strong sell" rating to a "hold" rating in a report on Monday, February 23rd. Keefe, Bruyette & Woods reduced 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. Truist Financial reduced their target price on shares of Blue Owl Capital from $16.00 to $15.00 and set a "buy" rating for the company in a report on Monday, February 23rd. Finally, Wall Street Zen raised shares of Blue Owl Capital from a "sell" rating to a "hold" rating in a report on Saturday, March 21st. Two research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $13.71.

Blue Owl Capital Company Profile

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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