Wall Street Zen Upgrades Blue Owl Capital (NYSE:OBDC) to "Hold"

Key Points

• Wall Street Zen upgraded Blue Owl Capital (NYSE:OBDC) from a "sell" rating to a "hold" in a note to investors.
• Analyst consensus is mixed-to-positive with an average rating of "Moderate Buy" and an average price target of $14.06, although several firms recently trimmed price targets.
• Board authorized a $300 million buyback (about 5.1% of shares); the company also reported quarterly EPS of $0.36, beating estimates by $0.01 while revenue missed consensus.

Blue Owl Capital (NYSE:OBDC - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "sell" rating to a "hold" rating in a note issued to investors on Saturday.

A number of other analysts have also issued reports on the stock. Truist Financial dropped their price objective on shares of Blue Owl Capital from $16.00 to $15.00 and set a "buy" rating on the stock in a research note on Monday, February 23rd. Royal Bank Of Canada cut their target price on Blue Owl Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a research note on Friday, February 20th. Zacks Research raised Blue Owl Capital from a "strong sell" rating to a "hold" rating in a report on Monday, February 23rd. Finally, Keefe, Bruyette & Woods reduced their target price on shares of Blue Owl Capital from $13.50 to $12.50 and set a "market perform" rating for the company in a report on Monday, February 23rd. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $14.06.

Blue Owl Capital Price Performance

Blue Owl Capital stock opened at $11.18 on Friday. The stock has a market capitalization of $5.58 billion, a PE ratio of 9.01 and a beta of 0.67. The business has a 50 day simple moving average of $11.75 and a 200-day simple moving average of $12.54. The company has a debt-to-equity ratio of 1.26, a current ratio of 1.17 and a quick ratio of 1.17. Blue Owl Capital has a 12 month low of $10.70 and a 12 month high of $15.36.

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

Blue Owl Capital announced that its Board of Directors has authorized a share buyback plan on Wednesday, February 18th that allows the company to repurchase $300.00 million in shares. This repurchase authorization allows the company to purchase up to 5.1% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board believes its stock is undervalued.

Hedge Funds Weigh In On Blue Owl Capital

Large investors have recently bought and sold shares of the business. IFP Advisors Inc raised its holdings in Blue Owl Capital by 79.6% in the third quarter. IFP Advisors Inc now owns 2,096 shares of the company's stock worth $27,000 after purchasing an additional 929 shares during the period. Caitong International Asset Management Co. Ltd increased its position in shares of Blue Owl Capital by 166.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 2,115 shares of the company's stock worth $27,000 after purchasing an additional 1,320 shares during the last quarter. Atlantic Union Bankshares Corp bought a new position in shares of Blue Owl Capital in the 3rd quarter valued at about $28,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in Blue Owl Capital during the 3rd quarter valued at $30,000. Finally, AG Campbell Advisory LLC acquired a new position in shares of Blue Owl Capital in the fourth quarter valued at about $36,000. 42.83% of the stock is currently owned by institutional investors and hedge funds.

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.

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