UBS Group AG Grows Stock Position in Blue Owl Capital Corporation $OBDC

Key Points

• UBS Group AG raised its stake in Blue Owl by 40.6% in Q4 to 8,528,672 shares — roughly 1.67% of the company worth about $106.0 million.
• Blue Owl's board authorized a $300.0 million share buyback to repurchase up to 5.1% of outstanding shares, signaling management believes the stock may be undervalued.
• The company pays a quarterly dividend of $0.37 (annualized $1.48), yielding 12.5%, but the dividend payout ratio is an elevated 119.35%, which raises sustainability concerns.

UBS Group AG raised its holdings in Blue Owl Capital Corporation (NYSE:OBDC - Free Report) by 40.6% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The fund owned 8,528,672 shares of the company's stock after buying an additional 2,463,080 shares during the quarter. UBS Group AG owned about 1.67% of Blue Owl Capital worth $106,011,000 at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. IFP Advisors Inc increased its holdings in shares of 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 purchasing an additional 929 shares during the period. Caitong International Asset Management Co. Ltd increased its holdings in shares of Blue Owl Capital by 166.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 2,115 shares of the company's stock valued at $27,000 after purchasing an additional 1,320 shares during the period. Atlantic Union Bankshares Corp acquired a new position in shares of Blue Owl Capital in the third quarter valued at about $28,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new position in shares of Blue Owl Capital in the third quarter valued at about $30,000. Finally, Assetmark Inc. acquired a new position in shares of Blue Owl Capital in the third quarter valued at about $38,000. 42.83% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on OBDC. Zacks Research raised Blue Owl Capital from a "strong sell" rating to a "hold" rating in a report on Monday, February 23rd. Wall Street Zen raised Blue Owl Capital from a "sell" rating to a "hold" rating in a report on Saturday, March 21st. Royal Bank Of Canada cut their price objective on Blue Owl Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a report on Friday, February 20th. Keefe, Bruyette & Woods cut their price objective 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. Finally, Truist Financial cut their price objective on Blue Owl Capital from $16.00 to $15.00 and set a "buy" rating on the stock in a report on Monday, February 23rd. Two analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $13.71.

Blue Owl Capital Stock Up 1.2%

Blue Owl Capital stock opened at $11.86 on Friday. The firm has a market cap of $5.89 billion, a price-to-earnings ratio of 9.57 and a beta of 0.64. Blue Owl Capital Corporation has a 52 week low of $10.52 and a 52 week high of $15.19. The business's 50-day moving average price is $11.29 and its 200 day moving average price is $12.08. 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 (NYSE:OBDC - Get Free Report) last posted 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 firm had revenue of $439.50 million for 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%. As a group, sell-side analysts anticipate that Blue Owl Capital Corporation will post 1.36 earnings per share for the current year.

Blue Owl Capital Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were issued a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a yield of 12.5%. The ex-dividend date of this dividend was Tuesday, March 31st. Blue Owl Capital's dividend payout ratio (DPR) is 119.35%.

Blue Owl Capital declared that its Board of Directors has initiated a share repurchase program on Wednesday, February 18th that allows the company to buyback $300.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 5.1% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its stock is undervalued.

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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