Stock Traders Purchase Large Volume of Call Options on Blue Owl Capital (NYSE:OBDC)

Key Points

• Traders purchased 6,892 call options on Blue Owl Capital (NYSE:OBDC), a 294% jump above the typical 1,749-call volume, indicating significant short‑term bullish interest.
• Blue Owl announced a quarterly dividend of $0.37 (an annualized 12.8% yield) with a payout ratio of 119.35% and authorized a $300 million buyback (up to 5.1% of shares), boosting returns but raising questions about dividend sustainability.
• Large institutions (VanEck, Bank of America, UBS) meaningfully increased positions, and analysts maintain a consensus "Moderate Buy" with a $14.06 target despite several trimmed price objectives.

Blue Owl Capital Corporation (NYSE:OBDC - Get Free Report) saw some unusual options trading activity on Tuesday. Traders purchased 6,892 call options on the company. This represents an increase of 294% compared to the typical volume of 1,749 call options.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the company. Keefe, Bruyette & Woods dropped their price objective on Blue Owl Capital from $13.50 to $12.50 and set a "market perform" rating for the company in a research note on Monday, February 23rd. Royal Bank Of Canada lowered their target price on Blue Owl Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a report on Friday, February 20th. Zacks Research upgraded Blue Owl Capital from a "strong sell" rating to a "hold" rating in a research report on Monday, February 23rd. Wells Fargo & Company decreased their price objective on shares of Blue Owl Capital from $13.00 to $12.00 and set an "equal weight" rating on the stock in a research report on Friday, November 7th. Finally, Citizens Jmp lowered their price objective on shares of Blue Owl Capital from $17.00 to $15.00 and set a "market outperform" rating on the stock in a research note on Friday, November 7th. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $14.06.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Van ECK Associates Corp raised its holdings in Blue Owl Capital by 6.0% in the third quarter. Van ECK Associates Corp now owns 13,364,378 shares of the company's stock valued at $170,663,000 after buying an additional 757,203 shares during the period. Bank of America Corp DE raised its stake in shares of Blue Owl Capital by 6.5% in the 3rd quarter. Bank of America Corp DE now owns 13,275,411 shares of the company's stock valued at $169,527,000 after acquiring an additional 811,973 shares during the period. UBS Group AG raised its stake in shares of Blue Owl Capital by 40.6% in the 4th quarter. UBS Group AG now owns 8,528,672 shares of the company's stock valued at $106,011,000 after acquiring an additional 2,463,080 shares during the period. Ameriprise Financial Inc. lifted its holdings in shares of Blue Owl Capital by 13.7% during the 3rd quarter. Ameriprise Financial Inc. now owns 5,454,128 shares of the company's stock valued at $69,005,000 after acquiring an additional 659,025 shares in the last quarter. Finally, Sound Income Strategies LLC boosted its position in Blue Owl Capital by 11.4% during the 4th quarter. Sound Income Strategies LLC now owns 3,779,901 shares of the company's stock worth $47,665,000 after purchasing an additional 387,347 shares during the period. Hedge funds and other institutional investors own 42.83% of the company's stock.

Blue Owl Capital Price Performance

Shares of NYSE:OBDC traded up $0.04 on Tuesday, hitting $11.57. The company had a trading volume of 5,707,184 shares, compared to its average volume of 6,151,661. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 1.26. The company has a market cap of $5.78 billion, a PE ratio of 9.33 and a beta of 0.67. Blue Owl Capital has a 52-week low of $10.70 and a 52-week high of $15.36. The business has a 50 day moving average of $12.10 and a 200 day moving average of $12.79.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last announced its earnings results on Wednesday, February 18th. The company reported $0.36 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.01. The firm had revenue of $439.50 million during the quarter, compared to the consensus estimate of $454.38 million. Blue Owl Capital had a net margin of 33.89% and a return on equity of 10.07%. As a group, equities analysts anticipate that Blue Owl Capital will post 1.71 earnings per share for the current fiscal year.

Blue Owl Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be paid a dividend of $0.37 per share. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $1.48 annualized dividend and a dividend yield of 12.8%. Blue Owl Capital's dividend payout ratio is presently 119.35%.

Blue Owl Capital announced that its Board of Directors has initiated a share buyback program on Wednesday, February 18th that permits the company to buyback $300.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 5.1% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's board believes its shares are undervalued.

Blue Owl Capital Company Profile

Blue Owl Capital Corporation NYSE: OBDC is a publicly traded business development company sponsored by Blue Owl Capital, a global alternative asset manager. Launched in 2020, the firm provides customized financing solutions to middle-market companies across various industries. As an externally managed BDC, Blue Owl Capital Corporation leverages the deep credit‐investment capabilities of its sponsor to deliver flexible capital tailored to the needs of growing businesses.

The company's investment activities span a range of private credit products, including first‐lien senior secured loans, unitranche facilities, second‐lien financings, mezzanine debt, and minority equity co-investments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.