Blue Owl Capital (NYSE:OBDC) Share Price Breaks Below 200 Day Moving Average - Time to Sell?

Key Points

• Blue Owl Capital fell below its 200-day moving average, trading as low as $10.87 and last at $10.885 versus a 200-day average of $11.09.
• Analysts maintain a “Moderate Buy” consensus with a $12.17 average price target; ratings include one Strong Buy, two Buys, and three Holds.
• The company beat quarterly earnings and revenue estimates, and announced a quarterly dividend of $0.31 per share—an annualized yield of 11.4%, though its reported payout ratio is 182.35%.

Shares of Blue Owl Capital Corporation (NYSE:OBDC - Get Free Report) crossed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $11.09 and traded as low as $10.87. Blue Owl Capital shares last traded at $10.8850, with a volume of 4,213,107 shares changing hands.

Wall Street Analyst Weigh In

OBDC has been the subject of a number of recent research reports. Capital One Financial set a $13.00 price objective on shares of Blue Owl Capital in a report on Friday, July 24th. Raymond James Financial set a $11.00 target price on shares of Blue Owl Capital in a research report on Thursday, October 22nd. Wall Street Zen upgraded Blue Owl Capital from a "sell" rating to a "hold" rating in a report on Saturday, July 25th. Finally, Lucid Cap Mkts raised Blue Owl Capital to a "strong-buy" rating in a research report on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Blue Owl Capital currently has an average rating of "Moderate Buy" and a consensus price target of $12.17.

Blue Owl Capital Trading Down 2.5%

The company has a quick ratio of 0.85, a current ratio of 0.85 and a debt-to-equity ratio of 1.16. The company has a 50-day moving average price of $10.62 and a 200-day moving average price of $11.09. The company has a market capitalization of $5.33 billion, a price-to-earnings ratio of 16.01 and a beta of 0.66.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last posted its quarterly earnings data on Wednesday, November 4th. The company reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.01. Blue Owl Capital had a return on equity of 9.40% and a net margin of 20.79%. The business had revenue of $392.06 million during the quarter, compared to analysts' expectations of $383.82 million. Research analysts predict that Blue Owl Capital Corporation will post 1.31 EPS for the current fiscal year.

Blue Owl Capital Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Thursday, December 31st will be given a dividend of $0.31 per share. This represents a $1.24 dividend on an annualized basis and a yield of 11.4%. This is an increase from Blue Owl Capital's previous quarterly dividend of $0.01. The ex-dividend date of this dividend is Thursday, December 31st. Blue Owl Capital's payout ratio is presently 182.35%.

Institutional Trading of Blue Owl Capital

Hedge funds have recently bought and sold shares of the stock. Sound Income Strategies LLC increased its holdings in shares of Blue Owl Capital by 32.0% during the 3rd quarter. Sound Income Strategies LLC now owns 5,549,823 shares of the company's stock worth $56,442,000 after purchasing an additional 1,345,081 shares during the period. Generali Asset Management SPA SGR raised its position in shares of Blue Owl Capital by 0.6% during the third quarter. Generali Asset Management SPA SGR now owns 4,377,778 shares of the company's stock valued at $45,923,000 after buying an additional 25,984 shares during the last quarter. Private Management Group Inc. lifted its stake in shares of Blue Owl Capital by 5.5% in the second quarter. Private Management Group Inc. now owns 4,056,747 shares of the company's stock valued at $44,097,000 after buying an additional 212,119 shares during the period. OMERS ADMINISTRATION Corp lifted its stake in shares of Blue Owl Capital by 71.3% in the first quarter. OMERS ADMINISTRATION Corp now owns 3,085,234 shares of the company's stock valued at $34,123,000 after buying an additional 1,284,222 shares during the period. Finally, Lunate Capital Ltd lifted its stake in shares of Blue Owl Capital by 103.7% in the third quarter. Lunate Capital Ltd now owns 2,444,536 shares of the company's stock valued at $25,643,000 after buying an additional 1,244,292 shares during the period. 42.83% of the stock is owned by institutional investors.

Blue Owl Capital Company Profile

Blue Owl Capital Corporation NYSE: OBDC is a business development company that provides financing to middle-market businesses. It invests primarily in privately held U.S. companies, with a focus on lending and other credit investments. The company's portfolio includes senior secured loans, unitranche and second-lien loans, and, to a lesser extent, equity investments. Its financing can support companies' growth, acquisitions, recapitalizations, and other business needs. Originally established as Owl Rock Capital Corporation, the company is externally managed by Blue Owl Credit Advisors, an affiliate of alternative asset manager Blue Owl Capital.

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