Blue Owl Capital (NYSE:OBDC) Sets New 52-Week Low - Time to Sell?

Key Points

• Blue Owl Capital shares hit a new 52-week low, falling to $10.52 and trading below both their 50-day and 200-day moving averages.
• Despite the decline, analysts maintain a consensus “Moderate Buy” rating with an average price target of $13.00. The company also exceeded quarterly EPS and revenue estimates.
• Blue Owl Capital declared a quarterly dividend of $0.31 per share, equating to a 11.8% annualized yield; institutional investors own 42.83% of the stock.

Blue Owl Capital Corporation (NYSE:OBDC - Get Free Report) shares reached a new 52-week low on Wednesday. The company traded as low as $10.52 and last traded at $10.5950, with a volume of 275800 shares trading hands. The stock had previously closed at $10.81.

Analyst Ratings Changes

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

Blue Owl Capital Stock Performance

The firm has a 50 day moving average price of $11.20 and a two-hundred day moving average price of $11.15. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.65 and a current ratio of 0.65. The company has a market capitalization of $5.20 billion, a P/E ratio of 18.83 and a beta of 0.63.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.34 earnings per share (EPS) for the quarter, topping 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 business had revenue of $396.00 million during the quarter, compared to analysts' expectations of $394.23 million. During the same quarter last year, the company posted $0.40 EPS. On average, research analysts expect that Blue Owl Capital Corporation will post 1.29 earnings per share for the current fiscal year.

Blue Owl Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th will be issued a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a dividend yield of 11.8%. The ex-dividend date is Wednesday, September 30th. Blue Owl Capital's dividend payout ratio is presently 14.29%.

Institutional Trading of Blue Owl Capital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Next Capital Management LLC raised its stake in Blue Owl Capital by 407.0% in the fourth quarter. Next Capital Management LLC now owns 199,584 shares of the company's stock valued at $2,488,000 after purchasing an additional 160,221 shares in the last quarter. Independent Financial Group LLC bought a new stake in shares of Blue Owl Capital during the 1st quarter worth approximately $1,925,000. Caz Investments LP lifted its stake in Blue Owl Capital by 45.3% during the second quarter. Caz Investments LP now owns 1,633,305 shares of the company's stock worth $17,754,000 after purchasing an additional 509,000 shares during the last quarter. NewEdge Wealth LLC boosted its stake in Blue Owl Capital by 81.6% in the first quarter. NewEdge Wealth LLC now owns 758,426 shares of the company's stock valued at $8,388,000 after buying an additional 340,861 shares in the last quarter. Finally, OMERS ADMINISTRATION Corp boosted its stake in shares of Blue Owl Capital by 71.3% in the 1st quarter. OMERS ADMINISTRATION Corp now owns 3,085,234 shares of the company's stock valued at $34,123,000 after purchasing an additional 1,284,222 shares in the last quarter. 42.83% of the stock is currently owned by institutional investors and hedge funds.

Blue Owl Capital Company Profile

Blue Owl Capital Corporation NYSE: OBDC is a business development company that provides financing to privately held, primarily U.S.-based middle-market companies. The company seeks to generate income and long-term capital appreciation by investing in businesses across a range of industries.

OBDC's portfolio primarily consists of first-lien senior secured loans, with additional investments in second-lien loans and, to a lesser extent, equity interests and other securities. Its financing solutions may support acquisitions, recapitalizations, refinancing, growth initiatives and other corporate purposes.

The company was formerly known as Owl Rock Capital Corporation and operates under an investment management agreement with an affiliate of Blue Owl Capital, a global alternative asset manager.

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