Prairiewood Capital LLC Raises Stock Position in Blue Owl Capital Corporation $OBDC

Key Points

• Prairiewood Capital raised its stake in Blue Owl Capital by 26.1% to 471,602 shares (about $5.86M), and institutional investors now own roughly 42.8% of the company with several large firms (VanEck, BofA, UBS, Ameriprise) also increasing holdings.
• Blue Owl declared a quarterly dividend of $0.37 (annualized $1.48) implying a 13.1% yield but with a high payout ratio of 119.35%, and its board approved a $300M buyback program to repurchase up to ~5.1% of shares.
• Analysts carry a consensus rating of "Moderate Buy" with a $13.79 target; the stock trades around $11.33 (P/E 9.14, market cap $5.63B) after reporting $0.36 EPS (beat by $0.01) while revenue missed estimates.

Prairiewood Capital LLC boosted its holdings in Blue Owl Capital Corporation (NYSE:OBDC - Free Report) by 26.1% in the fourth quarter, according to its most recent filing with the SEC. The institutional investor owned 471,602 shares of the company's stock after buying an additional 97,481 shares during the period. Blue Owl Capital accounts for approximately 1.8% of Prairiewood Capital LLC's holdings, making the stock its 18th biggest position. Prairiewood Capital LLC owned about 0.09% of Blue Owl Capital worth $5,862,000 at the end of the most recent quarter.

A number of other institutional investors have also bought and sold shares of the business. Van ECK Associates Corp increased its stake in Blue Owl Capital by 6.0% in the 3rd quarter. Van ECK Associates Corp now owns 13,364,378 shares of the company's stock worth $170,663,000 after buying an additional 757,203 shares in the last quarter. Bank of America Corp DE increased its stake in Blue Owl Capital by 6.5% in the 3rd quarter. Bank of America Corp DE now owns 13,275,411 shares of the company's stock worth $169,527,000 after buying an additional 811,973 shares in the last quarter. UBS Group AG increased its stake in Blue Owl Capital by 12.7% in the 3rd quarter. UBS Group AG now owns 6,065,592 shares of the company's stock worth $77,458,000 after buying an additional 681,444 shares in the last quarter. Ameriprise Financial Inc. increased its stake in Blue Owl Capital by 13.7% in the 3rd quarter. Ameriprise Financial Inc. now owns 5,454,128 shares of the company's stock worth $69,005,000 after buying an additional 659,025 shares in the last quarter. Finally, Sound Income Strategies LLC increased its stake in Blue Owl Capital by 11.4% in the 4th quarter. Sound Income Strategies LLC now owns 3,779,901 shares of the company's stock worth $47,665,000 after buying an additional 387,347 shares in the last quarter. Hedge funds and other institutional investors own 42.83% of the company's stock.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Wall Street Zen upgraded 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. Keefe, Bruyette & Woods cut their price objective on Blue Owl Capital from $13.50 to $12.50 and set a "market perform" rating for the company in a research report on Monday, February 23rd. Royal Bank Of Canada cut their price objective on Blue Owl Capital from $14.00 to $13.00 and set an "outperform" rating for the company in a research report on Friday, February 20th. Finally, Truist Financial cut their price objective 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. Two investment analysts have 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, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $13.79.

Blue Owl Capital Trading Up 3.7%

Shares of Blue Owl Capital stock opened at $11.33 on Wednesday. The firm has a market cap of $5.63 billion, a price-to-earnings ratio of 9.14 and a beta of 0.65. The business has a 50-day moving average price of $11.30 and a 200-day moving average price of $12.17. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 1.26. 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 released its quarterly earnings results on Wednesday, February 18th. The company reported $0.36 EPS for the quarter, topping the consensus estimate of $0.35 by $0.01. The company had revenue of $439.50 million during the quarter, compared to analyst estimates of $454.38 million. Blue Owl Capital had a return on equity of 10.07% and a net margin of 33.89%. Equities research analysts anticipate that Blue Owl Capital Corporation will post 1.71 EPS for the current fiscal year.

Blue Owl Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be given a $0.37 dividend. The ex-dividend date is Tuesday, March 31st. This represents a $1.48 annualized dividend and a yield of 13.1%. Blue Owl Capital's dividend payout ratio (DPR) is currently 119.35%.

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

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.

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.