Cornerstone Advisory LLC Invests $1.42 Million in Blue Owl Capital Corporation $OBDC

Key Points

• Cornerstone Advisory opened a new position in Blue Owl Capital, buying 114,020 shares valued at about $1.42 million during the fourth quarter.
• The Board approved a $300 million share repurchase plan (up to roughly 5.1% of outstanding shares), signaling the board believes the stock may be undervalued.
• Blue Owl pays a quarterly dividend of $0.37 (annualized $1.48) for a 13.0% yield119.35%, raising sustainability concerns.

Cornerstone Advisory LLC bought a new position in shares of Blue Owl Capital Corporation (NYSE:OBDC - Free Report) during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 114,020 shares of the company's stock, valued at approximately $1,417,000.

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

Blue Owl Capital Stock Down 2.2%

NYSE:OBDC opened at $11.36 on Friday. The firm has a market capitalization of $5.64 billion, a price-to-earnings ratio of 9.16 and a beta of 0.65. Blue Owl Capital Corporation has a 1-year low of $10.52 and a 1-year high of $15.19. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 1.26. The business's fifty day moving average price is $11.30 and its 200 day moving average price is $12.12.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last posted 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. The firm had revenue of $439.50 million for the quarter, compared to analyst estimates of $454.38 million. Blue Owl Capital had a return on equity of 10.07% and a net margin of 33.89%. On average, sell-side analysts forecast that Blue Owl Capital Corporation will post 1.36 earnings per share for the current fiscal year.

Blue Owl Capital declared that its Board of Directors has approved a share repurchase plan on Wednesday, February 18th that permits the company to repurchase $300.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 5.1% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Blue Owl Capital Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st were paid a $0.37 dividend. The ex-dividend date was Tuesday, March 31st. This represents a $1.48 dividend on an annualized basis and a yield of 13.0%. Blue Owl Capital's payout ratio is 119.35%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on OBDC shares. Truist Financial cut their target price on Blue Owl Capital from $16.00 to $15.00 and set a "buy" rating on the stock in a research report on Monday, February 23rd. Keefe, Bruyette & Woods dropped their price target on Blue Owl Capital from $12.50 to $12.00 and set a "market perform" rating on the stock in a research report on Thursday, April 16th. Zacks Research raised Blue Owl Capital from a "strong sell" rating to a "hold" rating in a research report on Monday, February 23rd. Royal Bank Of Canada dropped their price target on 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. Finally, Wall Street Zen raised Blue Owl Capital from a "sell" rating to a "hold" rating in a research report on Saturday, March 21st. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $13.71.

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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