Blue Owl Capital Corporation $OBDC Shares Sold by Gilbert & Cook Inc.

Key Points

• Gilbert & Cook slashed its stake in Blue Owl by 90.3% in Q4, selling 155,196 shares and retaining 16,612 shares worth about $206,000.
• Blue Owl declared a quarterly dividend of $0.37 (annualized $1.48) for a 13.2% yield119.35%, raising questions about sustainability.
• The board approved a $300 million share buyback (up to 5.1% of outstanding shares); the company posted Q4 EPS of $0.36 (beat by $0.01) despite a revenue miss, and analysts hold a "Moderate Buy" consensus with a $14.06 target.

Gilbert & Cook Inc. cut its holdings in Blue Owl Capital Corporation (NYSE:OBDC - Free Report) by 90.3% during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 16,612 shares of the company's stock after selling 155,196 shares during the period. Gilbert & Cook Inc.'s holdings in Blue Owl Capital were worth $206,000 as of its most recent SEC filing.

A number of other large investors have also recently added to or reduced their stakes in the business. Dynamic Technology Lab Private Ltd purchased a new stake in shares of Blue Owl Capital in the third quarter valued at about $1,208,000. Van ECK Associates Corp increased its stake in shares of Blue Owl Capital by 6.0% during the 3rd quarter. Van ECK Associates Corp now owns 13,364,378 shares of the company's stock worth $170,663,000 after purchasing an additional 757,203 shares in the last quarter. Caz Investments LP acquired a new position in shares of Blue Owl Capital during the 3rd quarter worth approximately $14,357,000. Border to Coast Pensions Partnership Ltd raised its position in shares of Blue Owl Capital by 19.2% during the 3rd quarter. Border to Coast Pensions Partnership Ltd now owns 1,550,000 shares of the company's stock worth $19,793,000 after purchasing an additional 250,000 shares during the last quarter. Finally, Ares Management LLC lifted its stake in Blue Owl Capital by 6.5% in the 2nd quarter. Ares Management LLC now owns 2,487,964 shares of the company's stock valued at $35,677,000 after buying an additional 151,142 shares in the last quarter. 42.83% of the stock is owned by institutional investors and hedge funds.

Blue Owl Capital Stock Down 2.3%

Shares of NYSE OBDC opened at $11.18 on Friday. The firm has a market cap of $5.58 billion, a P/E ratio of 9.01 and a beta of 0.67. The company has a debt-to-equity ratio of 1.26, a quick ratio of 1.17 and a current ratio of 1.17. Blue Owl Capital Corporation has a 1 year low of $10.70 and a 1 year high of $15.36. The firm's 50 day moving average price is $11.75 and its 200 day moving average price is $12.52.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last issued its quarterly earnings results on Wednesday, February 18th. The company reported $0.36 earnings per share for the quarter, beating 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 company had revenue of $439.50 million during the quarter, compared to the consensus estimate of $454.38 million. As a group, sell-side analysts anticipate that Blue Owl Capital Corporation will post 1.71 earnings per share for the current year.

Blue Owl Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be paid a $0.37 dividend. This represents a $1.48 annualized dividend and a yield of 13.2%. The ex-dividend date is Tuesday, March 31st. Blue Owl Capital's dividend payout ratio is presently 119.35%.

Blue Owl Capital announced that its Board of Directors has initiated a share repurchase program on Wednesday, February 18th that allows the company to repurchase $300.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 5.1% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its shares are undervalued.

Analyst Ratings Changes

OBDC has been the topic of a number of analyst reports. Royal Bank Of Canada lowered their target price on Blue Owl Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a report on Friday, February 20th. Zacks Research upgraded Blue Owl Capital from a "strong sell" rating to a "hold" rating in a research report on Monday, February 23rd. Keefe, Bruyette & Woods decreased their price objective on Blue Owl Capital from $13.50 to $12.50 and set a "market perform" rating on the stock in a research note on Monday, February 23rd. Wall Street Zen upgraded Blue Owl Capital from a "sell" rating to a "hold" rating in a research report on Saturday. Finally, Truist Financial cut 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 research note on Monday, February 23rd. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, Blue Owl Capital currently has a consensus rating of "Moderate Buy" and a consensus target price of $14.06.

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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