Blue Owl Technology Finance (NYSE:OTF) Reaches New 12-Month Low - Here's What Happened

Key Points

• Blue Owl Technology Finance fell to a new 52-week low of $9.36, below its 50-day and 200-day moving averages. Despite the decline, analysts maintain a “Moderate Buy” consensus rating with an average price target of $13.60.
• The company exceeded quarterly earnings expectations, reporting $0.33 in EPS versus the $0.31 estimate and $338.03 million in revenue, although EPS declined from $0.45 in the same quarter a year earlier.
• Blue Owl increased its quarterly dividend to $0.35 per share, implying a 14.9% annualized yield; however, its 175% payout ratio indicates the dividend exceeds reported earnings.

Blue Owl Technology Finance Corp. (NYSE:OTF - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday. The company traded as low as $9.36 and last traded at $9.3650, with a volume of 1976299 shares trading hands. The stock had previously closed at $9.44.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on OTF shares. Citizens Jmp boosted 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. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $12.00 target price on shares of Blue Owl Technology Finance in a research report on Monday, August 17th. Citigroup reiterated an "outperform" rating on shares of Blue Owl Technology Finance in a report on Friday, August 7th. Finally, Zacks Research raised Blue Owl Technology Finance from a "strong sell" rating to a "hold" rating in a research report on Wednesday, June 10th. Four investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, Blue Owl Technology Finance currently has a consensus rating of "Moderate Buy" and a consensus price target of $13.60.

Blue Owl Technology Finance Stock Performance

The stock has a 50 day moving average of $10.79 and a 200-day moving average of $10.95. The company has a market cap of $4.29 billion, a PE ratio of 11.71 and a beta of -0.58.

Blue Owl Technology Finance (NYSE:OTF - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.31 by $0.02. The business had revenue of $338.03 million for the quarter. Blue Owl Technology Finance had a return on equity of 7.17% and a net margin of 28.69%.During the same quarter in the previous year, the firm posted $0.45 EPS. Equities research analysts forecast that Blue Owl Technology Finance Corp. will post 1.25 EPS for the current year.

Blue Owl Technology Finance Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be given a dividend of $0.35 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $1.40 dividend on an annualized basis and a yield of 14.9%. This is a boost from Blue Owl Technology Finance's previous quarterly dividend of $0.05. Blue Owl Technology Finance's payout ratio is 175.00%.

Institutional Trading of Blue Owl Technology Finance

Several large investors have recently made changes to their positions in OTF. California State Teachers Retirement System acquired a new stake in Blue Owl Technology Finance during the first quarter worth about $250,556,000. Laura & John Arnold Foundation acquired a new position in Blue Owl Technology Finance in the second quarter valued at approximately $12,420,000. Wellington Management Group LLP purchased a new stake in Blue Owl Technology Finance in the 2nd quarter worth approximately $11,666,000. Requisite Capital Management LLC boosted its position in Blue Owl Technology Finance by 50.8% in the 2nd quarter. Requisite Capital Management LLC now owns 1,885,709 shares of the company's stock worth $20,267,000 after purchasing an additional 635,531 shares in the last quarter. Finally, Royal Bank of Canada grew its stake in shares of Blue Owl Technology Finance by 179.0% during the 1st quarter. Royal Bank of Canada now owns 826,317 shares of the company's stock worth $10,238,000 after purchasing an additional 530,185 shares during the period.

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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