Blue Owl Technology Finance (NYSE:OTF) Sets New 1-Year Low – Here’s Why

Blue Owl Technology Finance Corp. (NYSE:OTF) shares reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $10.91 and last traded at $11.27, with a volume of 383949 shares trading hands. The stock had previously closed at $11.15.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Truist Financial cut their target price on shares of Blue Owl Technology Finance from $17.00 to $16.00 and set a “buy” rating on the stock in a research note on Monday, February 23rd. Zacks Research upgraded Blue Owl Technology Finance from a “strong sell” rating to a “hold” rating in a report on Monday, January 26th. Wells Fargo & Company dropped their price target on shares of Blue Owl Technology Finance from $15.00 to $13.00 and set an “overweight” rating on the stock in a research report on Friday, February 20th. Finally, Keefe, Bruyette & Woods cut their target price on shares of Blue Owl Technology Finance from $16.00 to $13.00 and set a “market perform” rating for the company in a research report on Monday, February 23rd. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $14.00.

Blue Owl Technology Finance Price Performance

The business has a fifty day moving average price of $13.15. The stock has a market capitalization of $5.38 billion and a PE ratio of 6.81.

Blue Owl Technology Finance (NYSE:OTF) last issued its quarterly earnings data on Wednesday, February 18th. The company reported $0.30 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.32 by ($0.02). The business had revenue of $320.58 million during the quarter, compared to analyst estimates of $326.27 million. Blue Owl Technology Finance had a net margin of 62.89% and a return on equity of 6.91%.

Blue Owl Technology Finance Increases Dividend

The firm 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 $0.35 per share. This represents a $1.40 dividend on an annualized basis and a dividend yield of 12.1%. The ex-dividend date of this dividend is Tuesday, March 31st. This is a boost from Blue Owl Technology Finance’s previous quarterly dividend of $0.05. Blue Owl Technology Finance’s payout ratio is presently 82.35%.

Blue Owl Technology Finance announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, February 18th that allows the company to buyback $300.00 million in shares. This buyback authorization allows the company to buy up to 5.1% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling at Blue Owl Technology Finance

In related news, Director Chris Temple bought 5,000 shares of the business’s stock in a transaction dated Wednesday, February 25th. The stock was bought at an average price of $11.49 per share, for a total transaction of $57,450.00. Following the purchase, the director owned 5,000 shares in the company, valued at $57,450. This represents a ∞ increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Institutional Trading of Blue Owl Technology Finance

A number of hedge funds and other institutional investors have recently modified their holdings of OTF. Orange County Employees Retirement System bought a new position in Blue Owl Technology Finance during the 4th quarter worth approximately $116,497,000. Capricorn Investment Group LLC bought a new position in Blue Owl Technology Finance during the 4th quarter valued at $78,915,000. Rivernorth Capital Management LLC boosted its holdings in Blue Owl Technology Finance by 374.2% during the 4th quarter. Rivernorth Capital Management LLC now owns 1,934,726 shares of the company’s stock worth $28,131,000 after acquiring an additional 1,526,695 shares during the last quarter. Franklin Resources Inc. grew its stake in shares of Blue Owl Technology Finance by 155,006.8% in the 4th quarter. Franklin Resources Inc. now owns 1,754,258 shares of the company’s stock worth $25,507,000 after acquiring an additional 1,753,127 shares in the last quarter. Finally, Caz Investments LP raised its holdings in shares of Blue Owl Technology Finance by 72.2% in the fourth quarter. Caz Investments LP now owns 1,159,339 shares of the company’s stock valued at $16,857,000 after purchasing an additional 486,172 shares during the last quarter.

Blue Owl Technology Finance Company Profile

Blue Owl Technology Finance (NYSE: OTF) is a publicly traded business development company (BDC) sponsored by alternative asset manager Blue Owl. The firm focuses on providing customized debt and structured capital solutions to technology and technology-enabled companies, with an emphasis on growth-stage and middle-market borrowers. As a BDC, its primary activities include originating, structuring and managing private credit investments tailored to the financing needs of fast-growing businesses.

Its investment approach typically centers on direct lending and credit-oriented products, including senior secured loans, unitranche and subordinated debt, as well as selective equity-linked instruments and structured financings.