Blue Owl Technology Finance (NYSE:OTF) Hits New 12-Month Low - What's Next?

Key Points

• Blue Owl Technology Finance fell to a new 52-week low of $9.06, well below its 50-day and 200-day moving averages of $10.73 and $10.87.
• Despite the decline, analysts maintain a “Moderate Buy” consensus, with an average price target of $13.60; four analysts rate the stock a Buy and three rate it a Hold.
• The company raised its quarterly dividend to $0.35 per share, implying a 15.3% annualized yield, although its 175% payout ratio exceeds reported earnings.

Blue Owl Technology Finance Corp. (NYSE:OTF - Get Free Report)'s stock price reached a new 52-week low on Tuesday. The company traded as low as $9.06 and last traded at $9.1250, with a volume of 213,934 shares trading hands. The stock had previously closed at $9.21.

Analysts Set New Price Targets

OTF has been the subject of several research analyst reports. Royal Bank Of Canada restated a "sector perform" rating and issued a $12.00 price target on shares of Blue Owl Technology Finance in a research report on Monday, August 17th. Citizens Jmp raised their price objective on shares of Blue Owl Technology Finance from $16.00 to $17.00 and gave the stock a "market outperform" rating in a research note on Friday, August 7th. Finally, Citigroup reiterated an "outperform" rating on shares of Blue Owl Technology Finance in a research report on Friday, August 7th. Four investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $13.60.

Blue Owl Technology Finance Stock Performance

The company has a market cap of $4.18 billion, a PE ratio of 11.41 and a beta of -0.58. The company has a 50 day simple moving average of $10.73 and a two-hundred day simple moving average of $10.87.

Blue Owl Technology Finance (NYSE:OTF - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $0.33 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.31 by $0.02. The company had revenue of $338.03 million during the quarter. Blue Owl Technology Finance had a net margin of 28.69% and a return on equity of 7.17%. During the same quarter in the previous year, the company earned $0.45 EPS. As a group, analysts expect that Blue Owl Technology Finance Corp. will post 1.25 earnings per share for the current fiscal year.

Blue Owl Technology Finance Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Wednesday, September 30th will be issued a dividend of $0.35 per share. This is a positive change from Blue Owl Technology Finance's previous quarterly dividend of $0.05. This represents a $1.40 annualized dividend and a dividend yield of 15.3%. The ex-dividend date is Wednesday, September 30th. Blue Owl Technology Finance's dividend payout ratio is 175.00%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of OTF. Abel Hall LLC bought a new position in shares of Blue Owl Technology Finance during the 1st quarter valued at $124,000. Integrity Financial Corp WA acquired a new stake in shares of Blue Owl Technology Finance in the 2nd quarter valued at $123,000. Keybank National Association OH bought a new stake in Blue Owl Technology Finance in the first quarter worth $148,000. Kestra Advisory Services LLC boosted its holdings in Blue Owl Technology Finance by 39.1% in the first quarter. Kestra Advisory Services LLC now owns 12,241 shares of the company's stock worth $152,000 after purchasing an additional 3,443 shares in the last quarter. Finally, Angeles Wealth Management LLC bought a new stake in Blue Owl Technology Finance in the first quarter worth $166,000.

About Blue Owl Technology Finance

Blue Owl Technology Finance Corp. NYSE: OTF is a business development company focused on providing financing to technology-related businesses. The company invests primarily in privately owned, middle-market companies that may require capital to support growth, acquisitions, recapitalizations, or other corporate activities.

Its investment portfolio generally consists of senior secured loans and other debt investments, with the potential for equity and equity-related investments. Blue Owl Technology Finance seeks to generate current income and, to a lesser extent, capital appreciation by investing across segments of the technology sector, including software, technology services, and other technology-enabled businesses.

The company is externally managed by an affiliate of Blue Owl Capital Inc, an alternative asset management firm.

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