Blue Owl Capital Corporation $OBDC Shares Acquired by Next Capital Management LLC

Key Points

• Next Capital Management LLC boosted its Blue Owl Capital stake by 407% in the fourth quarter, ending with 199,584 shares valued at about $2.49 million.
• Blue Owl Capital reported Q1 earnings of $0.31 per share, missing analyst estimates, while revenue also came in below expectations at $391 million.
• The company recently cut its quarterly dividend to $0.31 per share, implying an annualized yield of 11.2%, and its board also authorized a $300 million share buyback.

Next Capital Management LLC increased its stake in Blue Owl Capital Corporation (NYSE:OBDC - Free Report) by 407.0% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 199,584 shares of the company's stock after buying an additional 160,221 shares during the quarter. Blue Owl Capital comprises 0.8% of Next Capital Management LLC's portfolio, making the stock its 29th largest position. Next Capital Management LLC's holdings in Blue Owl Capital were worth $2,488,000 as of its most recent filing with the SEC.

A number of other large investors have also modified their holdings of OBDC. Goldman Sachs Group Inc. grew its stake in shares of Blue Owl Capital by 25.0% in the first quarter. Goldman Sachs Group Inc. now owns 1,924,363 shares of the company's stock valued at $28,211,000 after buying an additional 384,641 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in Blue Owl Capital during the 1st quarter valued at approximately $6,641,000. EverSource Wealth Advisors LLC grew its stake in Blue Owl Capital by 106.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 8,728 shares of the company's stock valued at $125,000 after purchasing an additional 4,494 shares in the last quarter. Squarepoint Ops LLC grew its stake in Blue Owl Capital by 133.8% during the 2nd quarter. Squarepoint Ops LLC now owns 93,691 shares of the company's stock valued at $1,344,000 after purchasing an additional 53,613 shares in the last quarter. Finally, Diversify Advisory Services LLC grew its stake in Blue Owl Capital by 24.1% during the 2nd quarter. Diversify Advisory Services LLC now owns 16,484 shares of the company's stock valued at $235,000 after purchasing an additional 3,200 shares in the last quarter. Institutional investors and hedge funds own 42.83% of the company's stock.

Blue Owl Capital Price Performance

Shares of OBDC opened at $11.03 on Monday. The firm has a market cap of $5.47 billion, a price-to-earnings ratio of 15.75 and a beta of 0.62. The stock has a 50 day moving average of $11.21 and a 200-day moving average of $11.84. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 1.18. Blue Owl Capital Corporation has a 52 week low of $10.52 and a 52 week high of $15.19.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported $0.31 EPS for the quarter, missing the consensus estimate of $0.35 by ($0.04). The firm had revenue of $391.00 million during the quarter, compared to analyst estimates of $422.02 million. Blue Owl Capital had a return on equity of 9.76% and a net margin of 20.21%. As a group, analysts forecast that Blue Owl Capital Corporation will post 1.27 EPS for the current year.

Blue Owl Capital Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be paid a dividend of $0.31 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $1.24 annualized dividend and a yield of 11.2%. Blue Owl Capital's payout ratio is presently 211.43%.

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

Analysts Set New Price Targets

OBDC has been the subject of a number of recent analyst reports. Wall Street Zen lowered Blue Owl Capital from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. Zacks Research upgraded Blue Owl Capital from a "strong sell" rating to a "hold" rating in a research note on Monday, February 23rd. Truist Financial lowered their price objective on Blue Owl Capital from $15.00 to $13.00 and set a "buy" rating for the company in a research note on Tuesday, May 19th. Wells Fargo & Company lowered their price objective on Blue Owl Capital from $12.00 to $11.00 and set an "equal weight" rating for the company in a research note on Friday, May 8th. Finally, Keefe, Bruyette & Woods decreased their target price on Blue Owl Capital from $12.50 to $12.00 and set a "market perform" rating for the company in a research report on Thursday, April 16th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $13.00.

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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