HB Wealth Management LLC Reduces Stock Holdings in Blue Owl Capital Corporation $OBDC

Key Points

• HB Wealth Management LLC cut its stake in Blue Owl Capital (NYSE:OBDC) by 56.8% in Q4, selling 422,308 shares and retaining 321,585 shares worth about $3.997 million (0.06% ownership).
• Blue Owl's board authorized a $300 million stock buyback (up to 5.1% of shares) and the company paid a quarterly dividend of $0.37 (annualized yield ~13.1%), though the payout ratio stands at 119.35%.
• The stock trades near $11.27 with a market cap of $5.6 billion and a P/E of 9.09; analyst coverage is mixed but averages a "Moderate Buy" with an average price target of $13.71.

HB Wealth Management LLC reduced its position in shares of Blue Owl Capital Corporation (NYSE:OBDC - Free Report) by 56.8% in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 321,585 shares of the company's stock after selling 422,308 shares during the quarter. HB Wealth Management LLC owned 0.06% of Blue Owl Capital worth $3,997,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. Balyasny Asset Management L.P. purchased a new position in shares of Blue Owl Capital in the third quarter worth approximately $25,266,000. Marshall Wace LLP purchased a new stake in Blue Owl Capital during the third quarter valued at approximately $17,818,000. Caz Investments LP bought a new position in Blue Owl Capital in the third quarter worth approximately $14,357,000. Bank of America Corp DE raised its position in Blue Owl Capital by 6.5% in the third quarter. Bank of America Corp DE now owns 13,275,411 shares of the company's stock worth $169,527,000 after acquiring an additional 811,973 shares during the period. Finally, Van ECK Associates Corp boosted its stake in shares of Blue Owl Capital by 6.0% during the 3rd quarter. Van ECK Associates Corp now owns 13,364,378 shares of the company's stock worth $170,663,000 after acquiring an additional 757,203 shares during the last quarter. Hedge funds and other institutional investors own 42.83% of the company's stock.

Blue Owl Capital Stock Performance

OBDC opened at $11.27 on Friday. The company has a 50 day simple moving average of $11.30 and a two-hundred day simple moving average of $12.11. The company has a debt-to-equity ratio of 1.26, a current ratio of 1.17 and a quick ratio of 1.17. The firm has a market cap of $5.60 billion, a P/E ratio of 9.09 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.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last released its earnings results on Wednesday, February 18th. The company reported $0.36 earnings per share for the quarter, beating analysts' consensus estimates of $0.35 by $0.01. The company had revenue of $439.50 million for the quarter, compared to analysts' expectations of $454.38 million. Blue Owl Capital had a net margin of 33.89% and a return on equity of 10.07%. Equities analysts forecast that Blue Owl Capital Corporation will post 1.36 earnings per share for the current fiscal year.

Blue Owl Capital announced that its board has initiated a stock repurchase program on Wednesday, February 18th that allows the company to buyback $300.00 million in shares. This buyback authorization allows the company to reacquire up to 5.1% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

Blue Owl Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were given a $0.37 dividend. This represents a $1.48 annualized dividend and a dividend yield of 13.1%. The ex-dividend date was Tuesday, March 31st. Blue Owl Capital's payout ratio is presently 119.35%.

Analyst Ratings Changes

A number of brokerages have recently issued reports on OBDC. Wall Street Zen raised shares of Blue Owl Capital from a "sell" rating to a "hold" rating in a research report on Saturday, March 21st. Zacks Research upgraded Blue Owl Capital from a "strong sell" rating to a "hold" rating in a research report on Monday, February 23rd. Royal Bank Of Canada cut their price target on Blue Owl Capital from $14.00 to $13.00 and set an "outperform" rating for the company in a report on Friday, February 20th. Truist Financial reduced their price target on Blue Owl Capital from $16.00 to $15.00 and set a "buy" rating for the company in a research report on Monday, February 23rd. Finally, Keefe, Bruyette & Woods decreased their price objective on Blue Owl Capital from $12.50 to $12.00 and set a "market perform" rating on the stock in a research note on Thursday, April 16th. Two research analysts have 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, the company currently has an average rating of "Moderate Buy" and an average price target of $13.71.

Blue Owl Capital 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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