Blue Owl Capital (NYSE:OWL) Reaches New 1-Year Low – What’s Next?

Shares of Blue Owl Capital Inc. (NYSE:OWL) hit a new 52-week low on Friday . The stock traded as low as $10.51 and last traded at $11.1190, with a volume of 8842412 shares. The stock had previously closed at $11.58.

Key Headlines Impacting Blue Owl Capital

Here are the key news stories impacting Blue Owl Capital this week:

• Positive Sentiment: Analyst support: Raymond James reaffirmed a “strong-buy” on OWL, calling some market reaction overblown and supporting the stock versus recent headlines. Read More.
• Positive Sentiment: Fund-level results & capital return: Blue Owl’s BDCs and affiliated OTF reported Q4 results showing NAV stability, declared dividends and new $300m repurchase programs — signals of management confidence and cash distribution capacity. Read More. Read More.
• Neutral Sentiment: New lending relationship: Blue Owl funds were added as lenders to Fundbox’s credit facility, signaling ongoing institutional origination activity even amid headlines. Read More.
• Neutral Sentiment: Company framing of asset sale: Blue Owl says the $1.4bn of direct loans were sold opportunistically at ~99.7% of par to institutional buyers, delivering substantial return of capital to certain retail fund shareholders — management argues this was orderly portfolio management. Read More.
• Negative Sentiment: Redemptions halted at retail private-credit fund: Blue Owl permanently halted quarterly redemptions at its OBDC II retail vehicle, a move that triggered selling pressure and raised liquidity concerns among retail investors and advisors. Read More.
• Negative Sentiment: Industry concern and negative press flow: Multiple outlets (NYT, InvestmentNews, WSJ) flagged the loan sale and redemption halt as signaling private-credit liquidity and valuation stress — amplifying investor fear about retail access to private credit. Read More. Read More. Read More.
• Negative Sentiment: Market tests valuations: Coverage notes the $1.4bn sale is testing private-credit pricing and market appetite (pension and insurance buyers picked up the assets) — investors worry about how widely applicable those prices are across portfolios. Read More.
• Negative Sentiment: Bearish positioning: Unusually large put-option purchases (roughly 106,782 puts, ~252% above average) indicate traders are betting on further share weakness, which can accelerate downward moves. Read More.

Analysts Set New Price Targets

OWL has been the subject of a number of research reports. TD Cowen reiterated a “buy” rating on shares of Blue Owl Capital in a research note on Wednesday, January 14th. Piper Sandler decreased their target price on Blue Owl Capital from $21.00 to $15.00 and set an “overweight” rating for the company in a research report on Friday, February 6th. Zacks Research downgraded Blue Owl Capital from a “hold” rating to a “strong sell” rating in a report on Tuesday, January 27th. Citigroup restated an “outperform” rating on shares of Blue Owl Capital in a research note on Tuesday, January 27th. Finally, UBS Group decreased their price objective on shares of Blue Owl Capital from $18.00 to $16.50 and set a “neutral” rating for the company in a report on Tuesday, January 13th. Two research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Blue Owl Capital presently has a consensus rating of “Moderate Buy” and a consensus target price of $19.57.

Blue Owl Capital Stock Down 4.3%

The business has a 50 day simple moving average of $14.51 and a 200-day simple moving average of $16.14. The company has a market capitalization of $17.29 billion, a P/E ratio of 110.97, a PEG ratio of 0.98 and a beta of 1.11.

Blue Owl Capital (NYSE:OWL) last released its quarterly earnings data on Thursday, February 5th. The company reported $0.27 earnings per share for the quarter, topping analysts’ consensus estimates of $0.22 by $0.05. The business had revenue of $701.47 million for the quarter, compared to analysts’ expectations of $712.75 million. Blue Owl Capital had a net margin of 2.75% and a return on equity of 20.70%. Equities analysts forecast that Blue Owl Capital Inc. will post 0.92 EPS for the current fiscal year.

Blue Owl Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 2nd. Stockholders of record on Friday, February 20th will be given a dividend of $0.225 per share. The ex-dividend date is Friday, February 20th. This represents a $0.90 annualized dividend and a dividend yield of 8.1%. Blue Owl Capital’s payout ratio is currently 900.00%.

Insiders Place Their Bets

In other Blue Owl Capital news, CFO Alan Kirshenbaum purchased 33,670 shares of the firm’s stock in a transaction dated Monday, December 1st. The stock was bought at an average price of $14.87 per share, with a total value of $500,672.90. Following the completion of the purchase, the chief financial officer owned 33,670 shares in the company, valued at $500,672.90. This trade represents a ∞ increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Douglas I. Ostrover purchased 139,327 shares of the stock in a transaction dated Tuesday, December 2nd. The shares were acquired at an average cost of $15.06 per share, for a total transaction of $2,098,264.62. Following the completion of the acquisition, the chief executive officer directly owned 158,000 shares of the company’s stock, valued at approximately $2,379,480. This trade represents a 746.14% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders acquired 395,670 shares of company stock valued at $5,952,393. 27.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Capital World Investors raised its position in Blue Owl Capital by 5.9% in the fourth quarter. Capital World Investors now owns 90,245,690 shares of the company’s stock worth $1,348,272,000 after acquiring an additional 5,029,134 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of Blue Owl Capital by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 68,608,868 shares of the company’s stock worth $1,025,016,000 after purchasing an additional 691,980 shares in the last quarter. Capital International Investors raised its holdings in shares of Blue Owl Capital by 4.3% in the 4th quarter. Capital International Investors now owns 65,402,615 shares of the company’s stock worth $977,118,000 after purchasing an additional 2,676,281 shares in the last quarter. Bank of America Corp DE lifted its stake in Blue Owl Capital by 8.4% during the third quarter. Bank of America Corp DE now owns 22,563,953 shares of the company’s stock valued at $382,008,000 after purchasing an additional 1,751,024 shares during the last quarter. Finally, Boston Partners boosted its holdings in Blue Owl Capital by 16.2% during the fourth quarter. Boston Partners now owns 14,123,877 shares of the company’s stock worth $211,270,000 after buying an additional 1,970,101 shares in the last quarter. Institutional investors own 35.85% of the company’s stock.

Blue Owl Capital Company Profile

Blue Owl Capital is a global alternative asset manager that focuses on private credit, direct lending and equity-related strategies for institutional investors. Headquartered in New York, the firm develops and manages a range of private markets products designed to provide capital solutions to middle-market and larger corporate borrowers, as well as liquidity and partnership arrangements with private equity firms and other alternative managers.

Its core activities include direct lending and credit strategies that provide senior, unitranche and other structured loan products to companies across industries.