Blue Owl Capital (NYSE:OBDC) Sets New 12-Month Low - Should You Sell?

Key Points

• Blue Owl Capital shares fell to a new 52-week low of $9.81, below both their 50-day and 200-day moving averages. Despite the decline, analysts maintain a “Moderate Buy” consensus with an average price target of $12.83.
• The company slightly beat quarterly expectations, reporting $0.34 in EPS versus the $0.32 consensus and $396 million in revenue. However, EPS declined from $0.40 in the same quarter a year earlier.
• Blue Owl declared a quarterly dividend of $0.31, equivalent to a 12.6% annualized yield; its dividend payout ratio is notably high at 221.43%. Institutional investors own approximately 42.83% of the stock.

Blue Owl Capital Corporation (NYSE:OBDC - Get Free Report) shares hit a new 52-week low during mid-day trading on Monday. The stock traded as low as $9.81 and last traded at $9.8450, with a volume of 3,152,626 shares traded. The stock had previously closed at $10.11.

Wall Street Analyst Weigh In

A number of analysts recently commented on the stock. Capital One Financial set a $13.00 target price on shares of Blue Owl Capital in a report on Friday, July 24th. Wall Street Zen upgraded shares of Blue Owl Capital from a "sell" rating to a "hold" rating in a research report on Saturday, July 25th. Finally, Lucid Cap Mkts raised Blue Owl Capital to a "strong-buy" rating in a report on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, Blue Owl Capital presently has an average rating of "Moderate Buy" and a consensus price target of $12.83.

Blue Owl Capital Price Performance

The stock has a 50 day moving average of $10.99 and a two-hundred day moving average of $11.06. The stock has a market cap of $4.86 billion, a PE ratio of 17.58 and a beta of 0.64. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.65 and a current ratio of 0.65.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.34 EPS for the quarter, beating analysts' consensus estimates 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 company had revenue of $396.00 million during the quarter, compared to analyst estimates of $394.23 million. During the same period in the prior year, the firm earned $0.40 earnings per share. Equities analysts anticipate that Blue Owl Capital Corporation will post 1.29 EPS for the current year.

Blue Owl Capital Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were given a $0.31 dividend. This represents a $1.24 annualized dividend and a dividend yield of 12.6%. The ex-dividend date was Wednesday, September 30th. Blue Owl Capital's dividend payout ratio is 221.43%.

Hedge Funds Weigh In On Blue Owl Capital

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Strs Ohio raised its position in shares of Blue Owl Capital by 411.4% during the 1st quarter. Strs Ohio now owns 10,941,976 shares of the company's stock valued at $121,018,000 after acquiring an additional 8,802,373 shares during the last quarter. Sound Income Strategies LLC raised its position in shares of Blue Owl Capital by 32.0% in the 3rd quarter. Sound Income Strategies LLC now owns 5,549,823 shares of the company's stock valued at $56,442,000 after acquiring an additional 1,345,081 shares during the period. Private Management Group Inc. boosted its stake in Blue Owl Capital by 5.5% during the 2nd quarter. Private Management Group Inc. now owns 4,056,747 shares of the company's stock worth $44,097,000 after acquiring an additional 212,119 shares during the last quarter. OMERS ADMINISTRATION Corp boosted 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 grew its holdings in shares of Blue Owl Capital by 8.8% in the 1st quarter. Janney Montgomery Scott LLC now owns 2,011,090 shares of the company's stock valued at $22,243,000 after buying an additional 161,988 shares during the period. 42.83% of the stock is currently owned by hedge funds and other institutional investors.

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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