Caz Investments LP Buys 486,172 Shares of Blue Owl Technology Finance Corp. $OTF

Key Points

• Caz Investments LP increased its stake in Blue Owl Technology Finance by 72.2% in Q4, buying 486,172 shares and making OTF its largest portfolio holding.
• Analyst sentiment has turned more cautious, with multiple firms cutting price targets to around $12 and the consensus rating now at Hold with a $13.40 target.
• The company raised its quarterly dividend to $0.35 per share and also has a $300 million share buyback program in place, even as its latest earnings missed estimates.

Caz Investments LP lifted its stake in Blue Owl Technology Finance Corp. (NYSE:OTF - Free Report) by 72.2% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 1,159,339 shares of the company's stock after acquiring an additional 486,172 shares during the quarter. Blue Owl Technology Finance makes up approximately 29.2% of Caz Investments LP's investment portfolio, making the stock its largest position. Caz Investments LP owned approximately 0.25% of Blue Owl Technology Finance worth $16,857,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also modified their holdings of the company. Requisite Capital Management LLC increased its position in shares of Blue Owl Technology Finance by 141.2% in the fourth quarter. Requisite Capital Management LLC now owns 674,624 shares of the company's stock valued at $10,078,000 after acquiring an additional 394,895 shares during the last quarter. Stephens Inc. AR acquired a new stake in shares of Blue Owl Technology Finance in the fourth quarter valued at about $8,220,000. Bayshore Capital Advisors LLC acquired a new stake in shares of Blue Owl Technology Finance in the fourth quarter valued at about $2,220,000. Apollon Wealth Management LLC increased its position in shares of Blue Owl Technology Finance by 260.2% in the fourth quarter. Apollon Wealth Management LLC now owns 72,751 shares of the company's stock valued at $1,058,000 after acquiring an additional 52,551 shares during the last quarter. Finally, Denali Advisors LLC acquired a new stake in shares of Blue Owl Technology Finance in the fourth quarter valued at about $1,576,000.

Wall Street Analyst Weigh In

Several research firms have issued reports on OTF. Royal Bank Of Canada dropped their price objective on Blue Owl Technology Finance from $14.00 to $12.00 and set a "sector perform" rating on the stock in a research note on Monday, May 18th. Keefe, Bruyette & Woods dropped their price objective on Blue Owl Technology Finance from $13.00 to $12.00 and set a "market perform" rating on the stock in a research note on Tuesday, May 12th. Wells Fargo & Company dropped their price objective on Blue Owl Technology Finance from $13.00 to $12.00 and set an "overweight" rating on the stock in a research note on Friday, May 8th. Truist Financial dropped their price objective on Blue Owl Technology Finance from $16.00 to $15.00 and set a "buy" rating on the stock in a research note on Tuesday, May 19th. Finally, Zacks Research lowered Blue Owl Technology Finance from a "hold" rating to a "strong sell" rating in a research note on Tuesday, May 12th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $13.40.

Insider Activity at Blue Owl Technology Finance

In related news, Director Chris Temple purchased 7,000 shares of Blue Owl Technology Finance stock in a transaction that occurred on Friday, May 22nd. The shares were acquired at an average price of $10.71 per share, with a total value of $74,970.00. Following the completion of the transaction, the director directly owned 12,000 shares of the company's stock, valued at $128,520. This represents a 140.00% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Melissa Weiler purchased 10,000 shares of Blue Owl Technology Finance stock in a transaction that occurred on Wednesday, May 13th. The shares were bought at an average cost of $10.90 per share, for a total transaction of $109,000.00. Following the transaction, the director directly owned 10,000 shares of the company's stock, valued at $109,000. This represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought 18,000 shares of company stock worth $194,710 in the last ninety days. 0.05% of the stock is owned by company insiders.

Blue Owl Technology Finance Stock Up 0.4%

Blue Owl Technology Finance stock opened at $11.16 on Monday. Blue Owl Technology Finance Corp. has a 12 month low of $10.48 and a 12 month high of $21.62. The company has a 50 day moving average price of $11.45. The firm has a market capitalization of $5.16 billion and a P/E ratio of 12.40.

Blue Owl Technology Finance (NYSE:OTF - Get Free Report) last posted its earnings results on Wednesday, May 6th. The company reported $0.29 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.02). Blue Owl Technology Finance had a net margin of 32.78% and a return on equity of 7.43%. The firm had revenue of $222.12 million during the quarter. During the same quarter last year, the firm earned $0.41 earnings per share. Sell-side analysts predict that Blue Owl Technology Finance Corp. will post 1.26 EPS for the current year.

Blue Owl Technology Finance Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th will be given a $0.35 dividend. The ex-dividend date of this dividend is Tuesday, June 30th. This is a positive change from Blue Owl Technology Finance's previous quarterly dividend of $0.05. This represents a $1.40 annualized dividend and a dividend yield of 12.5%. Blue Owl Technology Finance's dividend payout ratio (DPR) is currently 155.56%.

Blue Owl Technology Finance announced that its Board of Directors has initiated a share buyback program on Wednesday, February 18th that authorizes the company to buyback $300.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 5.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board of directors believes its stock is undervalued.

Blue Owl Technology Finance Company Profile

Blue Owl Technology Finance NYSE: OTF is a publicly traded business development company (BDC) sponsored by alternative asset manager Blue Owl. The firm focuses on providing customized debt and structured capital solutions to technology and technology-enabled companies, with an emphasis on growth-stage and middle-market borrowers. As a BDC, its primary activities include originating, structuring and managing private credit investments tailored to the financing needs of fast-growing businesses.

Its investment approach typically centers on direct lending and credit-oriented products, including senior secured loans, unitranche and subordinated debt, as well as selective equity-linked instruments and structured financings.

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