Denali Advisors LLC Invests $1.58 Million in Blue Owl Technology Finance Corp. $OTF

Key Points

• Denali Advisors initiated a new position in Blue Owl Technology Finance, buying 108,378 shares valued at about $1.58 million in the fourth quarter.
• The company reported mixed quarterly results, with EPS of $0.29 missing estimates and down from $0.41 a year ago, while analysts still expect full-year EPS of 1.31.
• Blue Owl Technology Finance boosted its quarterly dividend to $0.35 from $0.05 and authorized a $300 million share buyback, signaling confidence in the stock despite recent analyst price-target cuts.

Denali Advisors LLC bought a new position in shares of Blue Owl Technology Finance Corp. (NYSE:OTF - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 108,378 shares of the company's stock, valued at approximately $1,576,000.

A number of other hedge funds and other institutional investors also recently modified their holdings of OTF. Newbridge Financial Services Group Inc. acquired a new stake in shares of Blue Owl Technology Finance during the fourth quarter worth $44,000. Cornerstone Partners Capital Management LLC bought a new position in shares of Blue Owl Technology Finance in the fourth quarter worth $146,000. QP Wealth Management LLC bought a new position in shares of Blue Owl Technology Finance in the fourth quarter worth $168,000. Norden Group LLC bought a new position in shares of Blue Owl Technology Finance in the fourth quarter worth $169,000. Finally, PFG Investments LLC bought a new position in shares of Blue Owl Technology Finance in the fourth quarter worth $170,000.

Insider Activity at Blue Owl Technology Finance

In related news, Director Chris Temple acquired 5,000 shares of the business's stock in a transaction that occurred on Wednesday, February 25th. The shares were bought at an average cost of $11.49 per share, with a total value of $57,450.00. Following the completion of the purchase, the director directly owned 5,000 shares in the company, valued at $57,450. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. 0.05% of the stock is currently owned by corporate insiders.

Blue Owl Technology Finance Stock Performance

Blue Owl Technology Finance stock opened at $10.95 on Friday. The business has a 50 day moving average of $11.75. The firm has a market capitalization of $5.06 billion and a price-to-earnings ratio of 12.16. Blue Owl Technology Finance Corp. has a one year low of $10.67 and a one year high of $21.62.

Blue Owl Technology Finance (NYSE:OTF - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported $0.29 EPS for the quarter, missing analysts' consensus estimates of $0.31 by ($0.02). The company had revenue of $325.94 million during the quarter. Blue Owl Technology Finance had a return on equity of 7.43% and a net margin of 32.78%.During the same quarter in the prior year, the company posted $0.41 earnings per share. As a group, analysts predict that Blue Owl Technology Finance Corp. will post 1.31 EPS for the current year.

Blue Owl Technology Finance declared that its Board of Directors has initiated a stock buyback plan on Wednesday, February 18th that allows the company to repurchase $300.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 5.1% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board believes its shares are undervalued.

Blue Owl Technology Finance Increases Dividend

The business 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 $0.35 dividend. This is an increase from Blue Owl Technology Finance's previous quarterly dividend of $0.05. This represents a $1.40 dividend on an annualized basis and a dividend yield of 12.8%. The ex-dividend date of this dividend is Tuesday, June 30th. Blue Owl Technology Finance's payout ratio is presently 155.56%.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. Keefe, Bruyette & Woods decreased their price target on Blue Owl Technology Finance from $16.00 to $13.00 and set a "market perform" rating on the stock in a research report on Monday, February 23rd. Citizens Jmp decreased their target price on Blue Owl Technology Finance from $17.00 to $16.00 and set a "market outperform" rating on the stock in a research report on Wednesday, April 22nd. Truist Financial decreased their target price on Blue Owl Technology Finance from $17.00 to $16.00 and set a "buy" rating on the stock in a research report on Monday, February 23rd. Wells Fargo & Company cut their price target 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. Finally, Zacks Research raised Blue Owl Technology Finance from a "strong sell" rating to a "hold" rating in a research note on Monday, January 26th. Three research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Blue Owl Technology Finance currently has an average rating of "Moderate Buy" and an average target price of $14.25.

About Blue Owl Technology Finance

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.