D.A. Davidson & CO. Cuts Stake in Blue Owl Capital Corporation $OBDC

Key Points

• D.A. Davidson & Co. cut its stake by 43.4% in Q4, selling 181,963 shares and leaving it with 237,435 shares worth about $2.95 million.
• Blue Owl approved a $300 million share buyback (up to ~5.1% of shares) and pays a quarterly dividend that annualizes to $1.48 for a 12.6% yield, though the payout ratio is a high 119.35%.
• Institutional and analyst picture: UBS added 2.46 million shares to hold 8.53 million (about $106M) and institutions own 42.83% of the stock; analysts have a consensus "Moderate Buy" with a $13.71 target while OBDC trades around $11.73.

D.A. Davidson & CO. reduced its position in shares of Blue Owl Capital Corporation (NYSE:OBDC - Free Report) by 43.4% in the fourth quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 237,435 shares of the company's stock after selling 181,963 shares during the quarter. D.A. Davidson & CO.'s holdings in Blue Owl Capital were worth $2,951,000 at the end of the most recent quarter.

Other large investors have also bought and sold shares of the company. UBS Group AG increased its holdings in shares of Blue Owl Capital by 40.6% in the 4th quarter. UBS Group AG now owns 8,528,672 shares of the company's stock worth $106,011,000 after purchasing an additional 2,463,080 shares in the last quarter. Balyasny Asset Management L.P. bought a new position in shares of Blue Owl Capital during the third quarter valued at $25,266,000. Marshall Wace LLP purchased a new stake in shares of Blue Owl Capital during the third quarter valued at $17,818,000. Caz Investments LP purchased a new stake in shares of Blue Owl Capital during the third quarter valued at $14,357,000. Finally, Bank of America Corp DE increased its holdings in Blue Owl Capital by 6.5% in the 3rd quarter. Bank of America Corp DE now owns 13,275,411 shares of the company's stock worth $169,527,000 after buying an additional 811,973 shares in the last quarter. 42.83% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the stock. Zacks Research upgraded shares of Blue Owl Capital from a "strong sell" rating to a "hold" rating in a research note on Monday, February 23rd. Keefe, Bruyette & Woods dropped their target price on shares of Blue Owl Capital from $12.50 to $12.00 and set a "market perform" rating on the stock in a report on Thursday, April 16th. Truist Financial decreased 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. Wall Street Zen raised Blue Owl Capital from a "sell" rating to a "hold" rating in a report on Saturday, March 21st. Finally, 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 note on Friday, February 20th. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $13.71.

Blue Owl Capital Trading Up 4.0%

Shares of OBDC stock opened at $11.73 on Friday. Blue Owl Capital Corporation has a 1 year low of $10.52 and a 1 year high of $15.19. The firm has a fifty day moving average price of $11.29 and a 200-day moving average price of $12.08. The company has a market cap of $5.82 billion, a price-to-earnings ratio of 9.46 and a beta of 0.65. The company has a debt-to-equity ratio of 1.26, a current ratio of 1.17 and a quick ratio of 1.17.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last released its quarterly earnings results on Wednesday, February 18th. The company reported $0.36 earnings per share (EPS) 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 business had revenue of $439.50 million during the quarter, compared to analyst estimates of $454.38 million. As a group, equities analysts predict that Blue Owl Capital Corporation will post 1.36 earnings per share for the current year.

Blue Owl Capital announced that its board has approved a share buyback plan on Wednesday, February 18th that allows the company to buyback $300.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 5.1% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

Blue Owl Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were paid a $0.37 dividend. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $1.48 dividend on an annualized basis and a dividend yield of 12.6%. Blue Owl Capital's dividend payout ratio is 119.35%.

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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