Sage Advisors LLC Lowers Stock Position in Blue Owl Capital Corporation $OBDC

Key Points

• Sage Advisors LLC trimmed its stake in Blue Owl Capital by 6.4% in Q4, selling 141,795 shares and remaining the firm's largest holding with 2,061,949 shares (about 0.40% of the company, valued at ~$25.63M).
• Blue Owl announced a quarterly dividend of $0.37 (a 13.4% yield) but with a high payout ratio of 119.35%, and also authorized a $300 million buyback to repurchase up to 5.1% of outstanding shares.
• Analysts are mixed but consensus is a Moderate Buy with an average target price of $14.06 versus the recent share price around $11.09, implying potential upside despite several lowered targets.

Sage Advisors LLC decreased its holdings in Blue Owl Capital Corporation (NYSE:OBDC - Free Report) by 6.4% in the fourth quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 2,061,949 shares of the company's stock after selling 141,795 shares during the quarter. Blue Owl Capital accounts for approximately 17.0% of Sage Advisors LLC's holdings, making the stock its biggest holding. Sage Advisors LLC owned 0.40% of Blue Owl Capital worth $25,630,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. IFP Advisors Inc increased its stake in Blue Owl Capital by 79.6% in the third quarter. IFP Advisors Inc now owns 2,096 shares of the company's stock valued at $27,000 after acquiring an additional 929 shares during the period. Caitong International Asset Management Co. Ltd lifted its stake in Blue Owl Capital by 166.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 2,115 shares of the company's stock worth $27,000 after purchasing an additional 1,320 shares during the period. Atlantic Union Bankshares Corp acquired a new stake in Blue Owl Capital during the third quarter valued at approximately $28,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in Blue Owl Capital during the third quarter valued at approximately $30,000. Finally, Assetmark Inc. bought a new stake in shares of Blue Owl Capital in the 3rd quarter valued at approximately $38,000. 42.83% of the stock is owned by institutional investors.

Analyst Ratings Changes

OBDC has been the subject of a number of recent research reports. Zacks Research raised Blue Owl Capital from a "strong sell" rating to a "hold" rating in a report on Monday, February 23rd. Royal Bank Of Canada decreased their price target on Blue Owl Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a research note on Friday, February 20th. Truist Financial lowered their price target on Blue Owl Capital from $16.00 to $15.00 and set a "buy" rating on the stock in a research report on Monday, February 23rd. Wall Street Zen upgraded Blue Owl Capital from a "sell" rating to a "hold" rating in a research note on Saturday, March 21st. Finally, 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 report on Monday, February 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Blue Owl Capital has an average rating of "Moderate Buy" and an average target price of $14.06.

Blue Owl Capital Price Performance

Shares of Blue Owl Capital stock opened at $11.09 on Friday. The stock has a market capitalization of $5.54 billion, a price-to-earnings ratio of 8.94 and a beta of 0.67. The firm's 50-day moving average price is $11.64 and its two-hundred day moving average price is $12.45. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 1.26. Blue Owl Capital Corporation has a 1-year low of $10.70 and a 1-year high of $15.31.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last announced its 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 business had revenue of $439.50 million for the quarter, compared to the consensus estimate of $454.38 million. Blue Owl Capital had a return on equity of 10.07% and a net margin of 33.89%. On average, equities analysts predict that Blue Owl Capital Corporation will post 1.71 earnings per share for the current fiscal year.

Blue Owl Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st will be issued a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a dividend yield of 13.4%. The ex-dividend date is Tuesday, March 31st. Blue Owl Capital's dividend payout ratio is presently 119.35%.

Blue Owl Capital declared that its Board of Directors has initiated a stock buyback program on Wednesday, February 18th that authorizes the company to buyback $300.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 5.1% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's leadership believes its shares are 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.

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