Sound Income Strategies LLC Acquires 1,345,081 Shares of Blue Owl Capital Corporation $OBDC

Key Points

• Sound Income Strategies increased its Blue Owl Capital stake by 32% in the third quarter, purchasing 1.35 million additional shares. It now owns 5.55 million shares valued at approximately $56.4 million, while institutional investors collectively hold 42.83% of OBDC.
• Analysts maintain a generally positive view, with OBDC carrying a consensus “Moderate Buy” rating and an average price target of $12.83. The company recently exceeded quarterly earnings and revenue expectations.
• Blue Owl Capital declared a quarterly dividend of $0.31 per share, equivalent to a $1.24 annualized payout and a 12.3% dividend yield, although its payout ratio is high at 221.43%.

Sound Income Strategies LLC grew its holdings in shares of Blue Owl Capital Corporation (NYSE:OBDC - Free Report) by 32.0% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 5,549,823 shares of the company's stock after buying an additional 1,345,081 shares during the quarter. Blue Owl Capital accounts for about 1.3% of Sound Income Strategies LLC's investment portfolio, making the stock its 6th largest holding. Sound Income Strategies LLC owned about 1.13% of Blue Owl Capital worth $56,442,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also made changes to their positions in the stock. Sage Investment Counsel LLC raised its holdings in Blue Owl Capital by 8.4% in the first quarter. Sage Investment Counsel LLC now owns 12,855 shares of the company's stock valued at $142,000 after acquiring an additional 1,000 shares in the last quarter. Attessa Capital LLC grew its holdings in Blue Owl Capital by 10.0% during the 3rd quarter. Attessa Capital LLC now owns 11,000 shares of the company's stock worth $115,000 after acquiring an additional 1,000 shares in the last quarter. Triumph Capital Management grew its holdings in Blue Owl Capital by 3.9% during the 2nd quarter. Triumph Capital Management now owns 27,235 shares of the company's stock worth $296,000 after acquiring an additional 1,010 shares in the last quarter. VPR Management LLC grew its holdings in Blue Owl Capital by 2.0% during the 2nd quarter. VPR Management LLC now owns 52,407 shares of the company's stock worth $570,000 after acquiring an additional 1,046 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd increased its position in shares of Blue Owl Capital by 51.7% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,208 shares of the company's stock worth $40,000 after purchasing an additional 1,093 shares during the last quarter. Institutional investors and hedge funds own 42.83% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on OBDC. Wall Street Zen raised shares of Blue Owl Capital from a "sell" rating to a "hold" rating in a research report on Saturday, July 25th. Capital One Financial set a $13.00 price objective on Blue Owl Capital in a report on Friday, July 24th. Finally, Lucid Cap Mkts upgraded Blue Owl Capital to a "strong-buy" rating in a research note on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $12.83.

Blue Owl Capital Stock Performance

NYSE:OBDC traded down $0.07 during midday trading on Friday, reaching $10.11. 2,711,426 shares of the company traded hands, compared to its average volume of 4,637,287. Blue Owl Capital Corporation has a twelve month low of $9.81 and a twelve month high of $13.57. The firm has a market capitalization of $4.98 billion, a price-to-earnings ratio of 18.04 and a beta of 0.64. The company has a debt-to-equity ratio of 1.12, a current ratio of 0.65 and a quick ratio of 0.65. The company has a fifty day moving average price of $11.11 and a 200 day moving average price of $11.10.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $0.34 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.02. The firm had revenue of $396.00 million for the quarter, compared to analyst estimates of $394.23 million. Blue Owl Capital had a return on equity of 9.49% and a net margin of 16.99%.During the same period last year, the company earned $0.40 earnings per share. On average, analysts expect that Blue Owl Capital Corporation will post 1.29 EPS for the current fiscal year.

Blue Owl Capital Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th will be given a dividend of $0.31 per share. The ex-dividend date is Wednesday, September 30th. This represents a $1.24 annualized dividend and a dividend yield of 12.3%. Blue Owl Capital's dividend payout ratio is currently 221.43%.

Blue Owl Capital Company Profile

Blue Owl Capital Corporation NYSE: OBDC is a business development company that provides financing to middle-market companies. The company invests primarily in privately held businesses through senior secured loans, including first-lien and unitranche loans, as well as second-lien debt, subordinated debt and equity investments.

OBDC's investment objective is to generate current income and, to a lesser extent, long-term capital appreciation. Its portfolio companies operate across a range of industries, and the company generally focuses on established businesses that may have limited access to traditional financing sources.

The company was formed as Owl Rock Capital Corporation and began operations in 2016.

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