Blue Owl Capital (NYSE:OBDC) Hits New 12-Month Low - Here's Why

Key Points

• Blue Owl Capital shares fell to a new 52-week low of $10.15, below both their previous close of $10.30 and their 50-day and 200-day moving averages near $11.12–$11.16.
• Despite the stock’s decline, analysts maintain a “Moderate Buy” consensus with an average price target of $13.00; recent quarterly results also exceeded expectations, with EPS of $0.34 versus $0.32 expected.
• The company declared a quarterly dividend of $0.31 per share, equal to an annualized $1.24 and a 12.2% yield, although its payout ratio remains elevated at 221.43%.

Blue Owl Capital Corporation (NYSE:OBDC - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Tuesday. The company traded as low as $10.15 and last traded at $10.1850, with a volume of 5004938 shares changing hands. The stock had previously closed at $10.30.

Analyst Ratings Changes

OBDC has been the topic of a number of recent analyst reports. Wall Street Zen raised shares of Blue Owl Capital from a "sell" rating to a "hold" rating in a research note on Saturday, July 25th. Capital One Financial set a $13.00 price objective on shares of Blue Owl Capital in a research note on Friday, July 24th. Finally, Lucid Cap Mkts upgraded Blue Owl Capital to a "strong-buy" rating in a report on Friday, July 24th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $13.00.

Blue Owl Capital Trading Down 1.1%

The business's 50-day simple moving average is $11.16 and its two-hundred day simple moving average is $11.12. The stock has a market capitalization of $5.02 billion, a price-to-earnings ratio of 18.19 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.

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

Blue Owl Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be paid a dividend of $0.31 per share. This represents a $1.24 dividend on an annualized basis and a dividend yield of 12.2%. The ex-dividend date is Wednesday, September 30th. Blue Owl Capital's payout ratio is currently 221.43%.

Institutional Investors Weigh In On Blue Owl Capital

A number of large investors have recently modified their holdings of OBDC. Strs Ohio lifted its position in Blue Owl Capital by 411.4% during the 1st quarter. Strs Ohio now owns 10,941,976 shares of the company's stock worth $121,018,000 after acquiring an additional 8,802,373 shares in the last quarter. Private Management Group Inc. raised its stake in shares of Blue Owl Capital by 5.5% during the second quarter. Private Management Group Inc. now owns 4,056,747 shares of the company's stock valued at $44,097,000 after purchasing an additional 212,119 shares during the period. Sound Income Strategies LLC raised its stake in shares of Blue Owl Capital by 5.2% during the first quarter. Sound Income Strategies LLC now owns 3,976,748 shares of the company's stock valued at $42,790,000 after purchasing an additional 196,847 shares during the period. OMERS ADMINISTRATION Corp lifted its position in shares of Blue Owl Capital by 71.3% during the first quarter. OMERS ADMINISTRATION Corp now owns 3,085,234 shares of the company's stock worth $34,123,000 after purchasing an additional 1,284,222 shares in the last quarter. Finally, Janney Montgomery Scott LLC lifted its position in shares of Blue Owl Capital by 8.8% during the first quarter. Janney Montgomery Scott LLC now owns 2,011,090 shares of the company's stock worth $22,243,000 after purchasing an additional 161,988 shares in the last quarter. Institutional investors and hedge funds own 42.83% of the company's stock.

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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