Traders Buy Large Volume of Put Options on Blue Owl Capital (NYSE:OWL)

Key Points

• Investors showed increased bearish sentiment towards Blue Owl Capital as evidenced by a significant rise in put option volume, reaching 12,883 contracts, a 156% increase from the usual volume.
• Institutional investors are actively purchasing shares, with notable increases in stakes from firms like MassMutual and Allworth Financial, highlighting growing interest in the stock.
• Blue Owl Capital reported quarterly earnings that missed analysts' expectations, with earnings per share of $0.17 versus the forecast of $0.20 and revenue of $620.19 million versus the expected $636.44 million.
• The company has announced an increase in its quarterly dividend to $0.225, resulting in an annual yield of 4.50%, despite a high dividend payout ratio of 692.31%.

Blue Owl Capital Inc. (NYSE:OWL - Get Free Report) saw some unusual options trading on Friday. Stock traders acquired 12,883 put options on the stock. This is an increase of 156% compared to the typical volume of 5,027 put options.

Hedge Funds Weigh In On Blue Owl Capital

Institutional investors and hedge funds have recently bought and sold shares of the stock. MassMutual Private Wealth & Trust FSB boosted its stake in shares of Blue Owl Capital by 380.4% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 1,326 shares of the company's stock valued at $27,000 after buying an additional 1,050 shares during the last quarter. Banque Transatlantique SA purchased a new position in shares of Blue Owl Capital during the 1st quarter valued at approximately $31,000. SVB Wealth LLC purchased a new position in shares of Blue Owl Capital during the 1st quarter valued at approximately $38,000. Cullen Frost Bankers Inc. boosted its stake in shares of Blue Owl Capital by 39.1% during the 1st quarter. Cullen Frost Bankers Inc. now owns 2,075 shares of the company's stock valued at $42,000 after buying an additional 583 shares during the last quarter. Finally, Allworth Financial LP boosted its stake in shares of Blue Owl Capital by 70.5% during the 1st quarter. Allworth Financial LP now owns 2,414 shares of the company's stock valued at $45,000 after buying an additional 998 shares during the last quarter. Hedge funds and other institutional investors own 35.85% of the company's stock.

Blue Owl Capital Trading Down 1.6%

Shares of NYSE OWL traded down $0.33 on Friday, reaching $19.99. 3,072,662 shares of the company traded hands, compared to its average volume of 7,818,422. Blue Owl Capital has a fifty-two week low of $14.55 and a fifty-two week high of $26.73. The stock has a market capitalization of $30.73 billion, a PE ratio of 154.10, a P/E/G ratio of 1.40 and a beta of 1.17. The company has a 50 day moving average of $19.17 and a 200 day moving average of $20.28.

Blue Owl Capital (NYSE:OWL - Get Free Report) last released its quarterly earnings results on Thursday, May 1st. The company reported $0.17 earnings per share for the quarter, missing analysts' consensus estimates of $0.20 by ($0.03). The company had revenue of $620.19 million during the quarter, compared to analysts' expectations of $636.44 million. Blue Owl Capital had a return on equity of 19.74% and a net margin of 3.73%. As a group, research analysts expect that Blue Owl Capital will post 0.92 earnings per share for the current year.

Blue Owl Capital Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, May 28th. Shareholders of record on Wednesday, May 14th were issued a $0.225 dividend. This represents a $0.90 dividend on an annualized basis and a yield of 4.50%. The ex-dividend date of this dividend was Wednesday, May 14th. This is a boost from Blue Owl Capital's previous quarterly dividend of $0.18. Blue Owl Capital's dividend payout ratio is currently 692.31%.

Wall Street Analysts Forecast Growth

OWL has been the topic of a number of research analyst reports. Cfra Research raised shares of Blue Owl Capital to a "moderate buy" rating in a report on Thursday, March 27th. UBS Group cut their price objective on shares of Blue Owl Capital from $26.00 to $23.00 and set a "buy" rating on the stock in a report on Thursday, May 1st. Piper Sandler raised their price objective on shares of Blue Owl Capital from $22.50 to $23.50 and gave the stock an "overweight" rating in a report on Wednesday, July 2nd. Citigroup lowered their target price on shares of Blue Owl Capital from $30.00 to $23.00 and set a "buy" rating on the stock in a research report on Tuesday, April 8th. Finally, JMP Securities lowered their target price on shares of Blue Owl Capital from $32.00 to $28.00 and set a "market outperform" rating on the stock in a research report on Tuesday, April 8th. Two analysts have rated the stock with a hold rating and ten have given a buy rating to the company. Based on data from MarketBeat, Blue Owl Capital has a consensus rating of "Moderate Buy" and an average price target of $24.02.

About Blue Owl Capital

Blue Owl Capital Inc operates as an asset manager in the United States. The company offers permanent capital base solutions that enables it to offer holistic framework of capital solutions to middle market companies, large alternative asset managers, and corporate real estate owners and tenants. It also provides direct lending products that offer private credit products comprising diversified, technology, first lien, and opportunistic lending to middle-market companies; liquid credit; GP strategic capital products, which offers capital solutions, including GP minority stakes, GP debt financing, and professional sports minority stakes; and real estate products that focuses on acquiring triple net lease real estate by investment grade or creditworthy tenants.

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