Insider Buying: Blue Owl Technology Finance (NYSE:OTF) Director Purchases 1,000 Shares of Stock

Key Points

• Director Eric Kaye bought 1,000 shares on February 25 at an average price of $11.44, a transaction disclosed in an SEC filing.
• Blue Owl raised its quarterly dividend to $0.35 (annualized $1.40), implying a 12.9% yield and up from a prior $0.05 quarterly payout, with a dividend payout ratio of 82.35%.
• The company reported Q results that missed expectations (EPS $0.30 vs. $0.32 consensus; revenue $223.5M vs. $326.3M est.) and the board approved a $300 million buyback (~5.1% of shares), while analysts have trimmed price targets to a consensus of $14.50 ("Moderate Buy").

Blue Owl Technology Finance Corp. (NYSE:OTF - Get Free Report) Director Eric Kaye purchased 1,000 shares of the stock in a transaction that occurred on Wednesday, February 25th. The shares were purchased at an average cost of $11.44 per share, with a total value of $11,440.00. Following the completion of the acquisition, the director owned 1,000 shares in the company, valued at approximately $11,440. This represents a ∞ increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link.

Blue Owl Technology Finance Trading Down 2.3%

OTF traded down $0.26 during trading hours on Monday, reaching $10.85. 2,770,731 shares of the stock traded hands, compared to its average volume of 2,166,293. The business's fifty day moving average price is $11.87. The firm has a market cap of $5.01 billion and a P/E ratio of 6.38. Blue Owl Technology Finance Corp. has a fifty-two week low of $10.80 and a fifty-two week high of $21.62.

Blue Owl Technology Finance (NYSE:OTF - Get Free Report) last released its quarterly earnings results on Wednesday, February 18th. The company reported $0.30 earnings per share for the quarter, missing analysts' consensus estimates of $0.32 by ($0.02). The firm had revenue of $223.52 million for the quarter, compared to analyst estimates of $326.27 million. Blue Owl Technology Finance had a net margin of 62.89% and a return on equity of 6.91%. Analysts predict that Blue Owl Technology Finance Corp. will post 1.31 EPS for the current year.

Blue Owl Technology Finance Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st were issued a dividend of $0.35 per share. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $1.40 annualized dividend and a yield of 12.9%. This is an increase from Blue Owl Technology Finance's previous quarterly dividend of $0.05. Blue Owl Technology Finance's dividend payout ratio (DPR) is 82.35%.

Blue Owl Technology Finance declared that its Board of Directors has authorized a stock buyback program on Wednesday, February 18th that authorizes the company to buyback $300.00 million in shares. This buyback authorization authorizes the company to purchase up to 5.1% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

OTF has been the subject of several recent analyst reports. Truist Financial decreased their price objective on shares of Blue Owl Technology Finance from $17.00 to $16.00 and set a "buy" rating for the company in a report on Monday, February 23rd. Zacks Research raised shares of Blue Owl Technology Finance from a "strong sell" rating to a "hold" rating in a report on Monday, January 26th. Citizens Jmp decreased their price objective on shares of Blue Owl Technology Finance from $17.00 to $16.00 and set a "market outperform" rating for the company in a report on Wednesday, April 22nd. Keefe, Bruyette & Woods decreased their price objective on shares of Blue Owl Technology Finance from $16.00 to $13.00 and set a "market perform" rating for the company in a report on Monday, February 23rd. Finally, Wells Fargo & Company decreased their price objective on shares of Blue Owl Technology Finance from $15.00 to $13.00 and set an "overweight" rating for the company in a report on Friday, February 20th. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $14.50.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Newbridge Financial Services Group Inc. acquired a new position in shares of Blue Owl Technology Finance in the 4th quarter valued at about $44,000. Clearstead Advisors LLC bought a new stake in Blue Owl Technology Finance in the 4th quarter valued at about $124,000. Kestra Advisory Services LLC bought a new stake in Blue Owl Technology Finance in the 4th quarter valued at about $128,000. Cornerstone Partners Capital Management LLC bought a new stake in Blue Owl Technology Finance in the 4th quarter valued at about $146,000. Finally, Onyx Bridge Wealth Group LLC bought a new stake in Blue Owl Technology Finance in the 4th quarter valued at about $150,000.

About Blue Owl Technology Finance

Blue Owl Technology Finance NYSE: OTF is a publicly traded business development company (BDC) sponsored by alternative asset manager Blue Owl. The firm focuses on providing customized debt and structured capital solutions to technology and technology-enabled companies, with an emphasis on growth-stage and middle-market borrowers. As a BDC, its primary activities include originating, structuring and managing private credit investments tailored to the financing needs of fast-growing businesses.

Its investment approach typically centers on direct lending and credit-oriented products, including senior secured loans, unitranche and subordinated debt, as well as selective equity-linked instruments and structured financings.

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