U.S. Capital Wealth Advisors LLC Raises Stock Position in Blue Owl Capital Corporation $OBDC

Key Points

• U.S. Capital Wealth Advisors raised its stake in Blue Owl by 162.8% to 241,511 shares (about $3.00M), and overall institutional investors now own about 42.83% of the stock.
• Blue Owl announced a quarterly dividend of $0.37 (annualized $1.48) implying a 13.1% yield with a 119.35% payout ratio, and its board approved a $300M share buyback (up to ~5.1% of shares).
• Analysts have trimmed price targets recently but the consensus rating is a "Moderate Buy" with a $13.79 target, while the stock trades near $11.31 (market cap ~$5.62B, P/E ~9.0).

U.S. Capital Wealth Advisors LLC raised its holdings in shares of Blue Owl Capital Corporation (NYSE:OBDC - Free Report) by 162.8% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 241,511 shares of the company's stock after acquiring an additional 149,609 shares during the quarter. U.S. Capital Wealth Advisors LLC's holdings in Blue Owl Capital were worth $3,002,000 as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. Sumitomo Mitsui Trust Group Inc. grew its position in shares of Blue Owl Capital by 7.8% during the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,903,832 shares of the company's stock worth $23,665,000 after purchasing an additional 137,858 shares in the last quarter. Diversify Advisory Services LLC lifted its holdings in Blue Owl Capital by 12.9% in the 4th quarter. Diversify Advisory Services LLC now owns 22,831 shares of the company's stock worth $288,000 after purchasing an additional 2,601 shares in the last quarter. Venturi Wealth Management LLC lifted its holdings in Blue Owl Capital by 167.5% in the 4th quarter. Venturi Wealth Management LLC now owns 30,500 shares of the company's stock worth $379,000 after purchasing an additional 19,100 shares in the last quarter. Sterneck Capital Management LLC boosted its stake in Blue Owl Capital by 37.8% in the 4th quarter. Sterneck Capital Management LLC now owns 36,507 shares of the company's stock worth $454,000 after purchasing an additional 10,019 shares during the period. Finally, Bfsg LLC bought a new position in Blue Owl Capital in the 4th quarter worth approximately $147,000. 42.83% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms recently weighed in on OBDC. Keefe, Bruyette & Woods cut their target price on shares of Blue Owl Capital from $13.50 to $12.50 and set a "market perform" rating for the company in a research note on Monday, February 23rd. Royal Bank Of Canada reduced their price objective 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. Wall Street Zen raised Blue Owl Capital from a "sell" rating to a "hold" rating in a 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. Finally, Truist Financial cut their target price on shares of Blue Owl Capital from $16.00 to $15.00 and set a "buy" rating for the company in a report on Monday, February 23rd. Two research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $13.79.

Blue Owl Capital Trading Up 3.5%

Shares of OBDC stock opened at $11.31 on Tuesday. The company has a market cap of $5.62 billion, a PE ratio of 9.00 and a beta of 0.65. The company has a debt-to-equity ratio of 1.26, a current ratio of 1.17 and a quick ratio of 1.17. The stock's 50 day simple moving average is $11.29 and its two-hundred day simple moving average is $12.18. Blue Owl Capital Corporation has a 1 year low of $10.52 and a 1 year 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 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.01. The company 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%. Research analysts predict that Blue Owl Capital Corporation will post 1.71 earnings per share for the current year.

Blue Owl Capital Announces Dividend

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

Blue Owl Capital declared that its Board of Directors has approved a stock repurchase plan on Wednesday, February 18th that permits the company to buyback $300.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 5.1% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Blue Owl Capital 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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