Orange County Employees Retirement System Invests $116.50 Million in Blue Owl Technology Finance Corp. $OTF

Key Points

• Orange County Employees Retirement System opened a new position in Blue Owl Technology Finance, buying 8.0 million shares worth about $116.5 million. The stake now represents 60.7% of the fund’s portfolio and 1.71% of OTF’s shares outstanding.
• Blue Owl Technology Finance has seen mixed analyst sentiment, with recent price-target cuts from several firms and Zacks downgrading the stock to strong sell. Overall, the consensus rating is Hold with an average price target of $13.40.
• The company raised its quarterly dividend to $0.35 per share from $0.05, implying a 12.5% yield, and its board also authorized a $300 million share buyback. However, the latest quarterly earnings missed estimates, reporting $0.29 EPS versus $0.31 expected.

Orange County Employees Retirement System purchased a new position in Blue Owl Technology Finance Corp. (NYSE:OTF - Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 8,012,165 shares of the company's stock, valued at approximately $116,497,000. Blue Owl Technology Finance comprises 60.7% of Orange County Employees Retirement System's investment portfolio, making the stock its biggest position. Orange County Employees Retirement System owned 1.71% of Blue Owl Technology Finance as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently modified their holdings of the business. Requisite Capital Management LLC grew its stake in shares of Blue Owl Technology Finance by 141.2% in the fourth quarter. Requisite Capital Management LLC now owns 674,624 shares of the company's stock worth $10,078,000 after acquiring an additional 394,895 shares during the period. Stephens Inc. AR bought a new stake in shares of Blue Owl Technology Finance in the fourth quarter worth approximately $8,220,000. Bayshore Capital Advisors LLC bought a new stake in shares of Blue Owl Technology Finance in the fourth quarter worth approximately $2,220,000. Apollon Wealth Management LLC grew its stake in shares of Blue Owl Technology Finance by 260.2% in the fourth quarter. Apollon Wealth Management LLC now owns 72,751 shares of the company's stock worth $1,058,000 after acquiring an additional 52,551 shares during the period. Finally, Denali Advisors LLC bought a new stake in shares of Blue Owl Technology Finance in the fourth quarter worth approximately $1,576,000.

Analyst Ratings Changes

A number of analysts have recently commented on the stock. Royal Bank Of Canada reduced their price target on shares of Blue Owl Technology Finance from $14.00 to $12.00 and set a "sector perform" rating for the company in a research note on Monday, May 18th. Keefe, Bruyette & Woods dropped their price target on Blue Owl Technology Finance from $13.00 to $12.00 and set a "market perform" rating on the stock in a research note on Tuesday, May 12th. Truist Financial dropped their price target on Blue Owl Technology Finance from $16.00 to $15.00 and set a "buy" rating on the stock in a research note on Tuesday, May 19th. Citizens Jmp dropped their price target on Blue Owl Technology Finance from $17.00 to $16.00 and set a "market outperform" rating on the stock in a research note on Wednesday, April 22nd. Finally, Zacks Research downgraded Blue Owl Technology Finance from a "hold" rating to a "strong sell" rating in a research note on Tuesday, May 12th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Blue Owl Technology Finance has an average rating of "Hold" and an average price target of $13.40.

Blue Owl Technology Finance Stock Performance

OTF opened at $11.16 on Friday. Blue Owl Technology Finance Corp. has a 12-month low of $10.48 and a 12-month high of $21.62. The business has a 50 day simple moving average of $11.45. The stock has a market capitalization of $5.16 billion and a P/E ratio of 12.40.

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 the consensus estimate of $0.31 by ($0.02). The company had revenue of $222.12 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 period last year, the business earned $0.41 EPS. As a group, research analysts predict that Blue Owl Technology Finance Corp. will post 1.26 EPS for the current fiscal year.

Blue Owl Technology Finance Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th will be paid a $0.35 dividend. This is a positive change from Blue Owl Technology Finance's previous quarterly dividend of $0.05. The ex-dividend date is Tuesday, June 30th. This represents a $1.40 annualized dividend and a dividend yield of 12.5%. Blue Owl Technology Finance's dividend payout ratio (DPR) is currently 155.56%.

Blue Owl Technology Finance declared that its Board of Directors has initiated a share buyback plan on Wednesday, February 18th that authorizes the company to buyback $300.00 million in shares. This buyback authorization authorizes the company to purchase up to 5.1% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

Insider Buying and Selling at Blue Owl Technology Finance

In related news, Director Melissa Weiler acquired 10,000 shares of Blue Owl Technology Finance stock in a transaction dated Wednesday, May 13th. The stock was purchased at an average cost of $10.90 per share, for a total transaction of $109,000.00. Following the purchase, the director directly owned 10,000 shares of the company's stock, valued at approximately $109,000. This trade represents a ∞ increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Chris Temple acquired 7,000 shares of Blue Owl Technology Finance stock in a transaction dated Friday, May 22nd. The stock was bought at an average price of $10.71 per share, with a total value of $74,970.00. Following the completion of the purchase, the director directly owned 12,000 shares in the company, valued at $128,520. This represents a 140.00% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders bought a total of 18,000 shares of company stock valued at $194,710 over the last 90 days. 0.05% of the stock is currently owned by company insiders.

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.

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