Royal Bank of Canada Sells 735,903 Shares of Blue Owl Capital Corporation $OBDC

Key Points

• Royal Bank of Canada reduced its Blue Owl Capital stake by 11%, selling 735,903 shares and retaining 5.93 million shares worth approximately $65.6 million. Institutional investors collectively own 42.83% of OBDC.
• Blue Owl Capital reported quarterly EPS of $0.31, below the $0.35 analyst consensus, while revenue of $391 million also missed expectations of $422 million.
• The company’s quarterly dividend equates to a high 11.5% annualized yield, but its 177.14% payout ratio raises sustainability concerns. Analysts maintain a “Moderate Buy” consensus with a $13 average price target versus the stock’s $10.77 opening price.

Royal Bank of Canada cut its holdings in shares of Blue Owl Capital Corporation (NYSE:OBDC - Free Report) by 11.0% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 5,934,384 shares of the company's stock after selling 735,903 shares during the period. Royal Bank of Canada owned approximately 1.20% of Blue Owl Capital worth $65,634,000 at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of the business. Enstar Group LTD lifted its stake in Blue Owl Capital by 2.9% during the 1st quarter. Enstar Group LTD now owns 601,787 shares of the company's stock valued at $6,656,000 after acquiring an additional 17,207 shares during the period. Evercore Wealth Management LLC grew its stake in shares of Blue Owl Capital by 25.1% in the first quarter. Evercore Wealth Management LLC now owns 49,800 shares of the company's stock worth $551,000 after acquiring an additional 10,000 shares during the period. Family Manage LLC grew its stake in shares of Blue Owl Capital by 15.8% in the first quarter. Family Manage LLC now owns 93,148 shares of the company's stock worth $1,030,000 after acquiring an additional 12,691 shares during the period. Sona Asset Management US LLC purchased a new position in shares of Blue Owl Capital during the first quarter valued at approximately $9,799,000. Finally, Everest Financial Group LLC purchased a new position in shares of Blue Owl Capital during the first quarter valued at approximately $122,000. 42.83% of the stock is currently owned by institutional investors.

Blue Owl Capital Price Performance

Shares of NYSE:OBDC opened at $10.77 on Friday. The firm's 50 day moving average price is $10.97 and its 200-day moving average price is $11.32. Blue Owl Capital Corporation has a twelve month low of $10.52 and a twelve month high of $14.53. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.18. The stock has a market capitalization of $5.34 billion, a PE ratio of 15.38 and a beta of 0.62.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last posted 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). Blue Owl Capital had a return on equity of 9.76% and a net margin of 20.21%.The business had revenue of $391.00 million during the quarter, compared to analysts' expectations of $422.02 million. Equities research analysts expect that Blue Owl Capital Corporation will post 1.27 EPS for the current year.

Blue Owl Capital Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were paid a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a dividend yield of 11.5%. The ex-dividend date was Tuesday, June 30th. Blue Owl Capital's dividend payout ratio (DPR) is currently 177.14%.

Wall Street Analyst Weigh In

OBDC has been the topic of several research reports. Wall Street Zen upgraded shares of Blue Owl Capital from a "sell" rating to a "hold" rating in a report on Saturday, July 25th. Capital One Financial set a $13.00 target price on shares of Blue Owl Capital in a research note on Friday, July 24th. Keefe, Bruyette & Woods lowered their price target on 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. Truist Financial dropped their price target on Blue Owl Capital from $15.00 to $13.00 and set a "buy" rating on the stock in a research note on Tuesday, May 19th. Finally, Wells Fargo & Company cut their price objective on 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. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price 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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