Lalia Capital LLC Invests $37.99 Million in Blue Owl Capital Corporation $OBDC

Key Points

• Lalia Capital LLC bought 3,056,435 shares of Blue Owl Capital Corporation in the fourth quarter, a stake valued at about $37.99 million. The position now makes up roughly 29.7% of Lalia Capital’s portfolio.
• Blue Owl Capital recently reported Q1 earnings below expectations, posting EPS of $0.31 versus the $0.35 consensus and revenue of $391 million versus the expected $422.02 million.
• The company also announced a $300 million stock buyback plan and a quarterly dividend of $0.31 per share, implying an annualized yield of 11.2%.

Lalia Capital LLC purchased a new position in shares of Blue Owl Capital Corporation (NYSE:OBDC - Free Report) in the fourth quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 3,056,435 shares of the company's stock, valued at approximately $37,991,000. Blue Owl Capital accounts for about 29.7% of Lalia Capital LLC's portfolio, making the stock its largest position. Lalia Capital LLC owned approximately 0.60% of Blue Owl Capital as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds also recently made changes to their positions in OBDC. UBS Group AG lifted its holdings in shares of Blue Owl Capital by 40.6% during the 4th quarter. UBS Group AG now owns 8,528,672 shares of the company's stock worth $106,011,000 after acquiring an additional 2,463,080 shares during the period. Balyasny Asset Management L.P. bought a new stake in shares of Blue Owl Capital during the 3rd quarter worth approximately $25,266,000. Marshall Wace LLP bought a new stake in shares of Blue Owl Capital during the 3rd quarter worth approximately $17,818,000. Bank of America Corp DE lifted its holdings in shares of Blue Owl Capital by 6.5% during the 3rd 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 lifted its holdings 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 period. Institutional investors own 42.83% of the company's stock.

Blue Owl Capital Price Performance

OBDC stock opened at $11.03 on Friday. The company has a 50 day simple moving average of $11.21 and a 200 day simple moving average of $11.84. The stock has a market cap of $5.47 billion, a price-to-earnings ratio of 15.75 and a beta of 0.62. Blue Owl Capital Corporation has a 1 year low of $10.52 and a 1 year high of $15.19. The company has a debt-to-equity ratio of 1.18, a current ratio of 1.24 and a quick ratio of 1.24.

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

Blue Owl Capital 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 shares. This repurchase authorization allows the company to purchase up to 5.1% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board believes its stock is undervalued.

Blue Owl Capital Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be given a $0.31 dividend. This represents a $1.24 annualized dividend and a yield of 11.2%. The ex-dividend date is Tuesday, June 30th. Blue Owl Capital's dividend payout ratio is 211.43%.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on OBDC. Wells Fargo & Company cut their price target on shares of Blue Owl Capital from $12.00 to $11.00 and set an "equal weight" rating for the company in a report on Friday, May 8th. Zacks Research upgraded shares of Blue Owl Capital from a "strong sell" rating to a "hold" rating in a research report on Monday, February 23rd. Wall Street Zen cut shares of Blue Owl Capital from a "hold" rating to a "sell" rating in a research report on Saturday, May 9th. Truist Financial lowered their price objective on shares of Blue Owl Capital from $15.00 to $13.00 and set a "buy" rating for the company in a research report on Tuesday, May 19th. Finally, Keefe, Bruyette & Woods lowered their price objective on shares of Blue Owl Capital from $12.50 to $12.00 and set a "market perform" rating for the company in a research report on Thursday, April 16th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $13.00.

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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