Traders Buy Large Volume of Put Options on Blue Owl Capital (NYSE:OWL)

Key Points

• Traders bought 229,226 put options on Blue Owl Capital—573% above its average daily put volume—signaling unusually high options activity.
• Shares fell $0.76 to $9.89 during Thursday trading. The company’s latest quarterly earnings beat analyst estimates, with EPS of $0.24 versus $0.23 expected and revenue of $752.6 million versus $698.1 million expected.
• Blue Owl declared a quarterly dividend of $0.23 per share, equivalent to a 9.3% annualized yield. Analysts’ consensus rating is “Moderate Buy,” with a $12.89 average price target.

Blue Owl Capital Inc. (NYSE:OWL - Get Free Report) was the target of unusually large options trading activity on Thursday. Traders purchased 229,226 put options on the stock. This is an increase of 573% compared to the average daily volume of 34,078 put options.

Blue Owl Capital Stock Performance

Shares of NYSE OWL traded down $0.76 during midday trading on Thursday, reaching $9.89. 21,985,453 shares of the company traded hands, compared to its average volume of 24,651,490. The firm has a market cap of $15.42 billion, a PE ratio of 70.67, a PEG ratio of 1.15 and a beta of 1.31. The stock's 50-day simple moving average is $10.01 and its 200-day simple moving average is $10.29. Blue Owl Capital has a 12 month low of $7.95 and a 12 month high of $17.00.

Blue Owl Capital (NYSE:OWL - Get Free Report) last posted its earnings results on Thursday, October 29th. The company reported $0.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.23 by $0.01. The company had revenue of $752.60 million during the quarter, compared to analysts' expectations of $698.10 million. Blue Owl Capital had a net margin of 3.08% and a return on equity of 24.70%. On average, equities research analysts expect that Blue Owl Capital will post 0.89 EPS for the current year.

Blue Owl Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 23rd. Investors of record on Tuesday, November 10th will be given a $0.23 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $0.92 annualized dividend and a dividend yield of 9.3%. Blue Owl Capital's payout ratio is currently 657.14%.

Institutional Investors Weigh In On Blue Owl Capital

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Bank of New York Mellon Corp bought a new stake in Blue Owl Capital during the 2nd quarter valued at approximately $54,883,000. Renaissance Technologies LLC raised its position in shares of Blue Owl Capital by 2,107.1% in the 1st quarter. Renaissance Technologies LLC now owns 6,065,200 shares of the company's stock worth $55,375,000 after acquiring an additional 5,790,400 shares in the last quarter. Estuary Capital Management LP lifted its stake in shares of Blue Owl Capital by 338.9% in the 1st quarter. Estuary Capital Management LP now owns 4,197,297 shares of the company's stock valued at $38,321,000 after purchasing an additional 3,241,040 shares during the period. Lalia Capital LLC bought a new stake in shares of Blue Owl Capital during the second quarter valued at approximately $34,952,000. Finally, OMERS ADMINISTRATION Corp purchased a new stake in Blue Owl Capital in the second quarter worth $34,481,000. 35.85% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Raymond James Financial reissued a "strong-buy" rating and set a $15.00 target price on shares of Blue Owl Capital in a research report on Wednesday. Citigroup reissued a "market outperform" rating on shares of Blue Owl Capital in a research report on Thursday, September 24th. The Goldman Sachs Group increased their target price on Blue Owl Capital from $9.50 to $10.50 and gave the company a "neutral" rating in a research note on Monday. Piper Sandler lifted their price target on Blue Owl Capital from $12.00 to $13.00 and gave the stock an "overweight" rating in a research report on Monday. Finally, Capital One Financial set a $12.00 price target on Blue Owl Capital in a report on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, Blue Owl Capital currently has a consensus rating of "Moderate Buy" and a consensus target price of $12.89.

Blue Owl Capital Company Profile

Blue Owl Capital Inc NYSE: OWL is an alternative asset manager that provides private-market investment solutions to institutional investors, financial professionals, and other clients. The company focuses on strategies designed to deliver income, long-term capital appreciation, and customized exposure to private markets.

Blue Owl operates across three primary platforms: Credit, GP Strategic Capital, and Real Estate. Its credit business provides private financing to companies, including direct lending and other asset-backed and specialty finance strategies.

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