Blue Owl Capital (NYSE:OBDC) Shares Break Above Fifty Day Moving Average - Time to Sell?

Key Points

• Shares rose above their 50-day moving average, trading as high as $10.85 and last at $10.772, compared with a 50-day average of $10.66.
• Analysts hold a consensus “Moderate Buy” rating with a $12.57 average price target; ratings include one Strong Buy, three Buys, and three Holds.
• Blue Owl beat quarterly earnings and revenue estimates, reporting EPS of $0.33 and revenue of $392.06 million. It also announced a quarterly dividend of $0.31 per share, equivalent to an 11.5% annualized yield.

Blue Owl Capital Corporation (NYSE:OBDC - Get Free Report)'s share price passed above its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $10.66 and traded as high as $10.85. Blue Owl Capital shares last traded at $10.7720, with a volume of 3,970,141 shares trading hands.

Analyst Upgrades and Downgrades

OBDC has been the topic of a number of research analyst reports. Capital One Financial set a $13.00 target price on Blue Owl Capital in a report on Friday, July 24th. Lucid Cap Mkts upgraded Blue Owl Capital to a "strong-buy" rating in a report on Friday, July 24th. Raymond James Financial set a $11.00 price target on Blue Owl Capital in a research report on Thursday, October 22nd. Finally, Wall Street Zen upgraded Blue Owl Capital from a "sell" rating to a "hold" rating in a research note on Saturday, July 25th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, Blue Owl Capital has a consensus rating of "Moderate Buy" and a consensus price target of $12.57.

Blue Owl Capital Price Performance

The company has a debt-to-equity ratio of 1.12, a current ratio of 0.65 and a quick ratio of 0.65. The stock has a market capitalization of $5.31 billion, a price-to-earnings ratio of 19.24 and a beta of 0.66. The company has a 50-day simple moving average of $10.66 and a two-hundred day simple moving average of $11.14.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The company reported $0.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.01. Blue Owl Capital had a net margin of 16.99% and a return on equity of 9.49%. The company had revenue of $392.06 million during the quarter, compared to the consensus estimate of $383.82 million. On average, equities research analysts predict that Blue Owl Capital Corporation will post 1.30 earnings per share for the current year.

Blue Owl Capital Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Thursday, December 31st will be given a $0.31 dividend. This is a positive change from Blue Owl Capital's previous quarterly dividend of $0.01. The ex-dividend date is Thursday, December 31st. This represents a $1.24 annualized dividend and a yield of 11.5%. Blue Owl Capital's payout ratio is currently 221.43%.

Institutional Investors Weigh In On Blue Owl Capital

A number of hedge funds have recently made changes to their positions in OBDC. Sound Income Strategies LLC boosted its stake in 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 worth $56,442,000 after purchasing an additional 1,345,081 shares during the period. OMERS ADMINISTRATION Corp grew its position in Blue Owl Capital by 71.3% during the 1st 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. Next Capital Management LLC grew its position in Blue Owl Capital by 610.9% during the 1st quarter. Next Capital Management LLC now owns 1,418,819 shares of the company's stock worth $15,789,000 after purchasing an additional 1,219,235 shares in the last quarter. Rivernorth Capital Management LLC raised its stake in Blue Owl Capital by 181.6% during the 1st quarter. Rivernorth Capital Management LLC now owns 1,426,822 shares of the company's stock valued at $15,781,000 after purchasing an additional 920,180 shares during the period. Finally, Sona Asset Management US LLC acquired a new stake in Blue Owl Capital during the 1st quarter valued at $9,799,000. Institutional investors own 42.83% of the company's stock.

Blue Owl Capital Company Profile

Blue Owl Capital Corporation NYSE: OBDC is a business development company focused on providing financing to middle-market companies. The company is externally managed by Blue Owl Credit Advisors LLC, an affiliate of Blue Owl Capital Inc, and seeks to generate income and capital appreciation through investments in privately negotiated transactions.

OBDC primarily invests in senior secured loans, including first-lien and unitranche debt, as well as second-lien loans and, to a lesser extent, equity investments and other securities.

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