Blue Owl Capital (NYSE:OBDC) Sets New 1-Year Low – Should You Sell?

Blue Owl Capital Corporation (NYSE:OBDC)’s share price reached a new 52-week low on Tuesday . The company traded as low as $10.64 and last traded at $10.71, with a volume of 15447 shares traded. The stock had previously closed at $10.89.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on OBDC shares. Royal Bank Of Canada reduced their target price on Blue Owl Capital from $14.00 to $13.00 and set an “outperform” rating on the stock in a research report on Friday, February 20th. Wall Street Zen raised Blue Owl Capital from a “sell” rating to a “hold” rating in a report on Saturday, March 21st. Keefe, Bruyette & Woods dropped their price target on Blue Owl Capital from $13.50 to $12.50 and set a “market perform” rating on the stock in a research note on Monday, February 23rd. Zacks Research upgraded shares of Blue Owl Capital from a “strong sell” rating to a “hold” rating in a report on Monday, February 23rd. Finally, Truist Financial decreased their price objective on shares of Blue Owl Capital from $16.00 to $15.00 and set a “buy” rating for the company in a research report on Monday, February 23rd. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $14.06.

Blue Owl Capital Stock Performance

The stock has a market capitalization of $5.38 billion, a price-to-earnings ratio of 8.68 and a beta of 0.65. 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 firm has a 50-day moving average of $11.50 and a 200-day moving average of $12.34.

Blue Owl Capital (NYSE:OBDC) last issued its quarterly earnings results on Wednesday, February 18th. The company reported $0.36 EPS for the quarter, topping analysts’ consensus estimates of $0.35 by $0.01. The company had revenue of $439.50 million during the quarter, compared to analysts’ expectations of $454.38 million. Blue Owl Capital had a return on equity of 10.07% and a net margin of 33.89%. As a group, sell-side analysts predict that Blue Owl Capital Corporation will post 1.71 earnings per share for the current year.

Blue Owl Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be issued a dividend of $0.37 per share. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $1.48 dividend on an annualized basis and a dividend yield of 13.7%. Blue Owl Capital’s payout ratio is 119.35%.

Blue Owl Capital announced that its Board of Directors has approved a share buyback plan on Wednesday, February 18th that permits the company to repurchase $300.00 million in outstanding shares. This repurchase authorization permits the company to buy up to 5.1% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Blue Owl Capital

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

About Blue Owl Capital

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.