Callodine Capital Management LP Grows Stake in Blue Owl Capital Corporation $OBDC

Key Points

• Callodine Capital Management increased its Blue Owl Capital stake by 50% in the first quarter, buying 150,000 additional shares to bring its holdings to 450,000 shares worth about $5.0 million.
• Blue Owl Capital reported Q1 earnings and revenue below analyst expectations, posting EPS of $0.31 versus the $0.35 estimate and revenue of $391 million versus the expected $422.02 million.
• The company recently paid a quarterly dividend of $0.31 per share, equal to an annualized yield of 11.5%, though its payout ratio is high at 177.14%.

Callodine Capital Management LP boosted its holdings in shares of Blue Owl Capital Corporation (NYSE:OBDC - Free Report) by 50.0% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 450,000 shares of the company's stock after purchasing an additional 150,000 shares during the quarter. Callodine Capital Management LP owned about 0.09% of Blue Owl Capital worth $4,977,000 at the end of the most recent quarter.

A number of other large investors also recently added to or reduced their stakes in the business. Strs Ohio boosted its stake in Blue Owl Capital by 411.4% in the 1st quarter. Strs Ohio now owns 10,941,976 shares of the company's stock worth $121,018,000 after purchasing an additional 8,802,373 shares during the period. Lalia Capital LLC purchased a new stake in Blue Owl Capital during the 4th quarter valued at approximately $37,991,000. UBS Group AG raised its position in shares of Blue Owl Capital by 40.6% during the fourth quarter. UBS Group AG now owns 8,528,672 shares of the company's stock valued at $106,011,000 after buying an additional 2,463,080 shares during the last quarter. Private Management Group Inc. purchased a new position in shares of Blue Owl Capital in the fourth quarter worth $27,012,000. Finally, Wells Fargo & Company MN raised its position in Blue Owl Capital by 142.6% during the fourth quarter. Wells Fargo & Company MN now owns 3,440,960 shares of the company's stock valued at $42,771,000 after purchasing an additional 2,022,806 shares during the period. 42.83% of the stock is owned by hedge funds and other institutional investors.

Blue Owl Capital Price Performance

Shares of OBDC stock opened at $10.78 on Friday. The company has a debt-to-equity ratio of 1.18, a current ratio of 1.24 and a quick ratio of 1.24. The company has a market capitalization of $5.35 billion, a P/E ratio of 15.39 and a beta of 0.62. The company's 50-day simple moving average is $10.99 and its two-hundred day simple moving average is $11.38. Blue Owl Capital Corporation has a one year low of $10.52 and a one year high of $14.89.

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 analysts' consensus estimates of $0.35 by ($0.04). Blue Owl Capital had a return on equity of 9.76% and a net margin of 20.21%.The company had revenue of $391.00 million for the quarter, compared to analysts' expectations of $422.02 million. As a group, equities analysts anticipate that Blue Owl Capital Corporation will post 1.27 EPS for the current year.

Blue Owl Capital Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were paid a $0.31 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $1.24 annualized dividend and a yield of 11.5%. Blue Owl Capital's dividend payout ratio is 177.14%.

Analysts Set New Price Targets

A number of research analysts have recently commented on OBDC shares. Capital One Financial set a $13.00 target price on Blue Owl Capital in a research note on Friday. Keefe, Bruyette & Woods dropped their price objective on 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 cut their price objective on Blue Owl Capital from $15.00 to $13.00 and set a "buy" rating on the stock in a research report on Tuesday, May 19th. Wells Fargo & Company reduced their target price on Blue Owl Capital from $12.00 to $11.00 and set an "equal weight" rating on the stock in a research note on Friday, May 8th. Finally, Wall Street Zen upgraded Blue Owl Capital from a "sell" rating to a "hold" rating in a research report on Saturday. One investment 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 stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $13.00.

Blue Owl Capital 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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