Royal Bank Of Canada Cuts Blue Owl Technology Finance (NYSE:OTF) Price Target to $12.00

Key Points

• Royal Bank of Canada cut its price target on Blue Owl Technology Finance from $14 to $12 and kept a sector perform rating. The new target still implies modest upside from the prior close.
• Other analysts have also turned more cautious, with several lowering targets and one firm downgrading the stock to strong sell. MarketBeat says the average analyst rating is now Hold, with an average target price of $13.60.
• The company recently reported Q1 earnings of $0.29 per share, missing estimates of $0.31, while revenue came in at $325.94 million. Blue Owl Technology Finance also authorized a $300 million share buyback, and insiders have been buying shares in recent months.

Blue Owl Technology Finance (NYSE:OTF - Get Free Report) had its target price lowered by equities research analysts at Royal Bank Of Canada from $14.00 to $12.00 in a note issued to investors on Monday,Benzinga reports. The brokerage currently has a "sector perform" rating on the stock. Royal Bank Of Canada's price target would indicate a potential upside of 7.36% from the stock's previous close.

A number of other research firms also recently commented on OTF. Wells Fargo & Company cut their price objective on Blue Owl Technology Finance from $13.00 to $12.00 and set an "overweight" rating on the stock in a report on Friday, May 8th. Zacks Research downgraded shares of Blue Owl Technology Finance from a "hold" rating to a "strong sell" rating in a research report on Tuesday, May 12th. Citizens Jmp reduced their price target on shares of Blue Owl Technology Finance from $17.00 to $16.00 and set a "market outperform" rating on the stock in a research report on Wednesday, April 22nd. Keefe, Bruyette & Woods reduced their target price on shares of Blue Owl Technology Finance from $13.00 to $12.00 and set a "market perform" rating on the stock in a report on Tuesday, May 12th. Finally, Truist Financial dropped their price objective on shares of Blue Owl Technology Finance from $17.00 to $16.00 and set a "buy" rating on the stock in a research note on Monday, February 23rd. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $13.60.

Blue Owl Technology Finance Stock Performance

NYSE:OTF traded up $0.01 during mid-day trading on Monday, reaching $11.18. The company's stock had a trading volume of 315,067 shares, compared to its average volume of 2,127,897. Blue Owl Technology Finance has a twelve month low of $10.67 and a twelve month high of $21.62. The stock's fifty day moving average price is $11.67. The company has a market cap of $5.17 billion and a PE ratio of 12.44.

Blue Owl Technology Finance (NYSE:OTF - Get Free Report) last released its earnings results on Wednesday, May 6th. The company reported $0.29 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.31 by ($0.02). The company had revenue of $325.94 million during the quarter. Blue Owl Technology Finance had a net margin of 32.78% and a return on equity of 7.43%. During the same period last year, the firm posted $0.41 EPS. On average, equities analysts predict that Blue Owl Technology Finance will post 1.26 earnings per share for the current fiscal year.

Blue Owl Technology Finance declared that its board has approved a share repurchase program on Wednesday, February 18th that allows the company to repurchase $300.00 million in shares. This repurchase authorization allows the company to reacquire up to 5.1% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other Blue Owl Technology Finance news, Director Chris Temple acquired 5,000 shares of the stock in a transaction that occurred on Wednesday, February 25th. The stock was acquired at an average price of $11.49 per share, with a total value of $57,450.00. Following the transaction, the director directly owned 5,000 shares in the company, valued at approximately $57,450. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Melissa Weiler bought 10,000 shares of the business's stock in a transaction on Wednesday, May 13th. The stock was acquired at an average cost of $10.90 per share, for a total transaction of $109,000.00. Following the acquisition, the director directly owned 10,000 shares of the company's stock, valued at $109,000. The trade was a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have acquired 17,000 shares of company stock worth $188,630 over the last three months. 0.05% of the stock is owned by corporate insiders.

Institutional Trading of Blue Owl Technology Finance

Institutional investors and hedge funds have recently made changes to their positions in the stock. NewEdge Wealth LLC increased its position in Blue Owl Technology Finance by 3.3% in the fourth quarter. NewEdge Wealth LLC now owns 69,925 shares of the company's stock worth $1,017,000 after buying an additional 2,218 shares during the period. Lido Advisors LLC boosted its holdings in shares of Blue Owl Technology Finance by 22.6% during the fourth quarter. Lido Advisors LLC now owns 14,545 shares of the company's stock valued at $208,000 after acquiring an additional 2,683 shares during the period. Newbridge Financial Services Group Inc. bought a new position in shares of Blue Owl Technology Finance during the fourth quarter worth about $44,000. Kestra Advisory Services LLC grew its position in shares of Blue Owl Technology Finance by 39.1% during the first quarter. Kestra Advisory Services LLC now owns 12,241 shares of the company's stock worth $152,000 after acquiring an additional 3,443 shares during the last quarter. Finally, Blair William & Co. IL increased its holdings in shares of Blue Owl Technology Finance by 41.4% in the 4th quarter. Blair William & Co. IL now owns 14,807 shares of the company's stock worth $215,000 after acquiring an additional 4,334 shares during the period.

About Blue Owl Technology Finance

Blue Owl Technology Finance NYSE: OTF is a publicly traded business development company (BDC) sponsored by alternative asset manager Blue Owl. The firm focuses on providing customized debt and structured capital solutions to technology and technology-enabled companies, with an emphasis on growth-stage and middle-market borrowers. As a BDC, its primary activities include originating, structuring and managing private credit investments tailored to the financing needs of fast-growing businesses.

Its investment approach typically centers on direct lending and credit-oriented products, including senior secured loans, unitranche and subordinated debt, as well as selective equity-linked instruments and structured financings.

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