Blue Owl Technology Finance (NYSE:OTF) Sets New 1-Year Low - Time to Sell?

Key Points

• Blue Owl Technology Finance shares fell to a new 52-week low of $9.00, trading below both their 50-day and 200-day moving averages. The stock has a $4.11 billion market capitalization and a beta of -0.58.
• Despite the decline, analysts maintain a “Moderate Buy” consensus with an average price target of $13.60, implying substantial upside from current levels. The company’s latest quarterly EPS of $0.33 exceeded estimates of $0.31.
• The company raised its quarterly dividend to $0.35 per share, or $1.40 annually and a 15.6% yield. However, its dividend payout ratio is elevated at 175%, which may raise sustainability concerns.

Blue Owl Technology Finance Corp. (NYSE:OTF - Get Free Report) shares hit a new 52-week low during mid-day trading on Monday. The stock traded as low as $9.00 and last traded at $8.9740, with a volume of 160,699 shares. The stock had previously closed at $9.13.

Wall Street Analysts Forecast Growth

OTF has been the subject of a number of research reports. Citigroup reaffirmed an "outperform" rating on shares of Blue Owl Technology Finance in a report on Friday, August 7th. Royal Bank Of Canada reissued a "sector perform" rating and issued a $12.00 price target on shares of Blue Owl Technology Finance in a research note on Monday, August 17th. Finally, Citizens Jmp boosted their price target on shares of Blue Owl Technology Finance from $16.00 to $17.00 and gave the stock a "market outperform" rating in a research report on Friday, August 7th. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $13.60.

Blue Owl Technology Finance Stock Down 1.8%

The stock has a market cap of $4.11 billion, a PE ratio of 11.22 and a beta of -0.58. The stock has a 50-day moving average of $10.59 and a 200 day moving average of $10.77.

Blue Owl Technology Finance (NYSE:OTF - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.33 earnings per share for the quarter, topping analysts' consensus estimates of $0.31 by $0.02. The company 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 period last year, the firm posted $0.45 EPS. Research analysts forecast that Blue Owl Technology Finance Corp. will post 1.25 EPS for the current fiscal year.

Blue Owl Technology Finance Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were given a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 15.6%. The ex-dividend date of this dividend was Wednesday, September 30th. This is a positive change from Blue Owl Technology Finance's previous quarterly dividend of $0.05. Blue Owl Technology Finance's dividend payout ratio is presently 175.00%.

Institutional Investors Weigh In On Blue Owl Technology Finance

Hedge funds have recently modified their holdings of the company. California State Teachers Retirement System purchased a new stake in shares of Blue Owl Technology Finance in the 1st quarter valued at approximately $250,556,000. Laura & John Arnold Foundation purchased a new stake in shares of Blue Owl Technology Finance during the 2nd quarter valued at approximately $12,420,000. Wellington Management Group LLP purchased a new stake in shares of Blue Owl Technology Finance during the 2nd quarter valued at approximately $11,666,000. Requisite Capital Management LLC raised its position in shares of Blue Owl Technology Finance by 50.8% during the 2nd quarter. Requisite Capital Management LLC now owns 1,885,709 shares of the company's stock valued at $20,267,000 after buying an additional 635,531 shares during the period. Finally, Royal Bank of Canada lifted its holdings in Blue Owl Technology Finance by 179.0% in the first quarter. Royal Bank of Canada now owns 826,317 shares of the company's stock valued at $10,238,000 after acquiring an additional 530,185 shares during the last quarter.

Blue Owl Technology Finance Company Profile

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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