Blue Owl Capital (NYSE:OBDC) Hits New 1-Year Low – Here’s Why

Blue Owl Capital Corporation (NYSE:OBDC) reached a new 52-week low during trading on Tuesday . The stock 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.

Wall Street Analyst Weigh In

Several brokerages recently commented on OBDC. Keefe, Bruyette & Woods dropped their target price on Blue Owl Capital from $13.50 to $12.50 and set a “market perform” rating on the stock in a report on Monday, February 23rd. Zacks Research raised shares of Blue Owl Capital from a “strong sell” rating to a “hold” rating in a research report on Monday, February 23rd. Wall Street Zen raised Blue Owl Capital from a “sell” rating to a “hold” rating in a research report on Saturday, March 21st. 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. Finally, Royal Bank Of Canada dropped their price objective 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. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $14.06.

Blue Owl Capital Price Performance

The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 1.26. The stock has a market cap of $5.37 billion, a price-to-earnings ratio of 8.69 and a beta of 0.67. The company’s 50-day moving average is $11.57 and its 200-day moving average is $12.38.

Blue Owl Capital (NYSE:OBDC) last announced its quarterly earnings results on Wednesday, February 18th. The company reported $0.36 EPS for the quarter, beating the consensus estimate of $0.35 by $0.01. Blue Owl Capital had a return on equity of 10.07% and a net margin of 33.89%.The business had revenue of $439.50 million for the quarter, compared to analyst estimates of $454.38 million. Equities research analysts expect that Blue Owl Capital Corporation will post 1.71 earnings per share for the current fiscal year.

Blue Owl Capital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be issued a $0.37 dividend. 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 13.8%. Blue Owl Capital’s dividend payout ratio (DPR) is currently 119.35%.

Blue Owl Capital announced that its board has approved a stock buyback plan on Wednesday, February 18th that permits the company to repurchase $300.00 million in shares. This repurchase authorization permits the company to purchase up to 5.1% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On Blue Owl Capital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. grew its holdings in Blue Owl Capital by 25.0% during the first quarter. Goldman Sachs Group Inc. now owns 1,924,363 shares of the company’s stock valued at $28,211,000 after purchasing an additional 384,641 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new position in shares of Blue Owl Capital in the first quarter valued at approximately $6,641,000. JPMorgan Chase & Co. increased its position in shares of Blue Owl Capital by 7.2% during the second quarter. JPMorgan Chase & Co. now owns 2,479,913 shares of the company’s stock worth $35,562,000 after acquiring an additional 167,123 shares in the last quarter. Legal & General Group Plc lifted its position in Blue Owl Capital by 4.3% in the 2nd quarter. Legal & General Group Plc now owns 471,823 shares of the company’s stock valued at $6,768,000 after acquiring an additional 19,500 shares in the last quarter. Finally, Lido Advisors LLC lifted its holdings in shares of Blue Owl Capital by 129.8% in the second quarter. Lido Advisors LLC now owns 444,235 shares of the company’s stock valued at $6,525,000 after purchasing an additional 250,927 shares in the last quarter. Institutional investors own 42.83% of the company’s stock.

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.