Enstar Group LTD Sells 143,522 Shares of Blue Owl Capital Corporation $OBDC

Key Points

• Enstar Group cut its Blue Owl Capital position by 19.7% in the fourth quarter, selling 143,522 shares and leaving it with 584,580 shares worth about $7.27 million.
• Blue Owl Capital reported weaker-than-expected quarterly results, posting earnings of $0.31 per share versus estimates of $0.35 and revenue of $391 million versus expectations of $422.02 million.
• The company approved a $300 million share repurchase program and recently declared a quarterly dividend of $0.31 per share, which annualizes to a yield of about 11.1%.

Enstar Group LTD lessened its stake in Blue Owl Capital Corporation (NYSE:OBDC - Free Report) by 19.7% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 584,580 shares of the company's stock after selling 143,522 shares during the quarter. Blue Owl Capital comprises approximately 2.8% of Enstar Group LTD's holdings, making the stock its 8th biggest holding. Enstar Group LTD owned approximately 0.11% of Blue Owl Capital worth $7,266,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. IFP Advisors Inc boosted its holdings in shares of 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 purchasing an additional 929 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its holdings in shares of 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 purchasing an additional 1,320 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new position in shares of Blue Owl Capital in the 3rd quarter valued at $30,000. Assetmark Inc. acquired a new position in shares of Blue Owl Capital in the 3rd quarter valued at $38,000. Finally, FNY Investment Advisers LLC acquired a new position in shares of Blue Owl Capital in the 4th quarter valued at $44,000. Institutional investors and hedge funds own 42.83% of the company's stock.

Blue Owl Capital Stock Performance

NYSE:OBDC opened at $11.20 on Friday. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 1.18. The firm has a market capitalization of $5.56 billion, a price-to-earnings ratio of 15.99 and a beta of 0.62. The firm's fifty day simple moving average is $11.23 and its 200 day simple moving average is $11.81. Blue Owl Capital Corporation has a twelve month low of $10.52 and a twelve month high of $15.19.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last posted its earnings results on Wednesday, May 6th. The company reported $0.31 earnings per share for the quarter, missing the consensus estimate of $0.35 by ($0.04). The business had revenue of $391.00 million for the quarter, compared to analyst estimates of $422.02 million. Blue Owl Capital had a net margin of 20.21% and a return on equity of 9.76%. As a group, equities research analysts expect that Blue Owl Capital Corporation will post 1.27 earnings per share for the current fiscal year.

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

Blue Owl Capital Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be issued a dividend of $0.31 per share. The ex-dividend date is Tuesday, June 30th. This represents a $1.24 annualized dividend and a dividend yield of 11.1%. Blue Owl Capital's payout ratio is presently 211.43%.

Wall Street Analyst Weigh In

OBDC has been the topic of a number of research analyst reports. Royal Bank Of Canada decreased 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 report on Friday, February 20th. Wall Street Zen lowered shares of Blue Owl Capital from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. Keefe, Bruyette & Woods decreased their price target 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. Wells Fargo & Company decreased 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 report on Friday, May 8th. Finally, Zacks Research upgraded shares of Blue Owl Capital from a "strong sell" rating to a "hold" rating in a report on Monday, February 23rd. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $13.00.

About Blue Owl Capital

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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