Commonwealth Equity Services LLC Decreases Stake in Blue Owl Capital Corporation $OBDC

Key Points

• Commonwealth Equity Services LLC cut its Blue Owl Capital position by 46.8% in Q4, selling 491,354 shares and ending with 558,508 shares worth about $6.94 million.
• Blue Owl Capital’s latest quarter missed expectations, posting $0.31 EPS versus the $0.35 estimate and revenue of $391.0 million versus the $422.0 million consensus.
• The company reduced its quarterly dividend to $0.31 per share, implying an annualized yield of about 11.2%, while analysts currently rate the stock a Moderate Buy with an average price target of $13.00.

Commonwealth Equity Services LLC reduced its position in Blue Owl Capital Corporation (NYSE:OBDC - Free Report) by 46.8% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 558,508 shares of the company's stock after selling 491,354 shares during the period. Commonwealth Equity Services LLC owned approximately 0.11% of Blue Owl Capital worth $6,942,000 at the end of the most recent quarter.

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

Wall Street Analysts Forecast Growth

OBDC has been the topic of several research analyst reports. Royal Bank Of Canada reduced their price target on shares of Blue Owl Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a research report on Friday, February 20th. Wells Fargo & Company reduced their price target on shares of Blue Owl Capital from $12.00 to $11.00 and set an "equal weight" rating on the stock in a research report on Friday, May 8th. Wall Street Zen cut shares of Blue Owl Capital from a "hold" rating to a "sell" rating in a research report on Saturday, May 9th. Zacks Research raised shares of Blue Owl Capital from a "strong sell" rating to a "hold" rating in a research report on Monday, February 23rd. Finally, Truist Financial reduced their price target on shares of 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. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $13.00.

Blue Owl Capital Stock Performance

Shares of OBDC stock opened at $11.03 on Friday. The company has a debt-to-equity ratio of 1.18, a quick ratio of 1.24 and a current ratio of 1.24. Blue Owl Capital Corporation has a one year low of $10.52 and a one year high of $15.19. The company's 50-day simple moving average is $11.21 and its 200-day simple moving average is $11.84. The stock has a market capitalization of $5.47 billion, a price-to-earnings ratio of 15.75 and a beta of 0.62.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last issued its quarterly 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). 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 the consensus estimate of $422.02 million. Equities analysts anticipate that Blue Owl Capital Corporation will post 1.27 earnings per share for the current fiscal year.

Blue Owl Capital Cuts Dividend

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

Blue Owl Capital announced that its board has authorized a stock repurchase program 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 stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

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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