Royal Bank Of Canada Has Lowered Expectations for Blue Owl Capital (NYSE:OBDC) Stock Price

Blue Owl Capital (NYSE:OBDC) had its target price dropped by research analysts at Royal Bank Of Canada from $14.00 to $13.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has an “outperform” rating on the stock. Royal Bank Of Canada’s target price points to a potential upside of 13.59% from the stock’s previous close.

A number of other analysts have also recently commented on the company. Wells Fargo & Company dropped their price target on Blue Owl Capital from $13.00 to $12.00 and set an “equal weight” rating on the stock in a research report on Friday, November 7th. Keefe, Bruyette & Woods lowered their price objective on Blue Owl Capital from $14.50 to $13.50 and set a “market perform” rating for the company in a research note on Monday, November 10th. Finally, Citizens Jmp cut their target price on Blue Owl Capital from $17.00 to $15.00 and set a “market outperform” rating on the stock in a research note on Friday, November 7th. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $14.07.

Blue Owl Capital Stock Up 0.1%

OBDC traded up $0.02 during trading on Friday, reaching $11.45. The stock had a trading volume of 704,826 shares, compared to its average volume of 5,482,138. The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 1.25. The company has a market capitalization of $5.85 billion, a price-to-earnings ratio of 9.11 and a beta of 0.67. The stock’s 50 day moving average is $12.27 and its two-hundred day moving average is $12.94. Blue Owl Capital has a one year low of $10.70 and a one year high of $15.73.

Blue Owl Capital (NYSE:OBDC) last released its earnings results on Wednesday, February 18th. The company reported $0.36 earnings per share for the quarter, topping analysts’ consensus estimates of $0.35 by $0.01. The firm had revenue of $439.50 million for the quarter, compared to the consensus estimate of $454.38 million. Blue Owl Capital had a net margin of 33.89% and a return on equity of 9.98%. As a group, analysts expect that Blue Owl Capital will post 1.71 earnings per share for the current year.

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

Insider Transactions at Blue Owl Capital

In other news, VP Neena Reddy bought 7,890 shares of the firm’s stock in a transaction on Wednesday, November 26th. The shares were bought at an average price of $13.06 per share, for a total transaction of $103,043.40. Following the purchase, the vice president owned 7,890 shares in the company, valued at approximately $103,043.40. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.11% of the company’s stock.

Institutional Trading of Blue Owl Capital

A number of hedge funds and other institutional investors have recently modified their holdings of OBDC. Caz Investments LP bought a new stake in Blue Owl Capital in the 3rd quarter worth approximately $14,357,000. Border to Coast Pensions Partnership Ltd increased its stake in Blue Owl Capital by 19.2% in the third quarter. Border to Coast Pensions Partnership Ltd now owns 1,550,000 shares of the company’s stock worth $19,793,000 after purchasing an additional 250,000 shares during the period. Ares Management LLC lifted its holdings in shares of Blue Owl Capital by 6.5% in the 2nd quarter. Ares Management LLC now owns 2,487,964 shares of the company’s stock worth $35,677,000 after buying an additional 151,142 shares during the period. Arkadios Wealth Advisors increased its position in Blue Owl Capital by 144.9% during the 3rd quarter. Arkadios Wealth Advisors now owns 389,245 shares of the company’s stock valued at $4,971,000 after purchasing an additional 230,295 shares during the period. Finally, Whittier Trust Co. of Nevada Inc. bought a new stake in shares of Blue Owl Capital in the 3rd quarter valued at about $1,671,000. 42.83% of the stock is owned by hedge funds and other institutional investors.

Blue Owl Capital News Roundup

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

• Positive Sentiment: Board approved a new $300 million share repurchase program (up from prior $200M), signaling management thinks shares are undervalued and providing buyback support to the stock. Read More.
• Positive Sentiment: Blue Owl and affiliated BDCs struck deals to sell $1.4B of direct-lending assets to institutional buyers at near-par (99.7%), which generates immediate liquidity and supports planned distributions to affected fund investors. This reduces mark-to-market stress on the balance sheet and funds payouts. Read More.
• Positive Sentiment: Management reported opportunistic repurchases of OBDC stock at roughly 86% price-to-book and noted a Moody’s upgrade to Baa2, both of which support creditstanding and capital-return credibility. Read More.
• Neutral Sentiment: Q4 results: EPS of $0.36 beat consensus by $0.01 but revenue missed; adjusted NII per share was flat quarter-over-quarter and NAV dipped slightly (to $14.81). The quarter shows earnings resilience but also some pressure from credit markdowns. Read More.
• Neutral Sentiment: Company says it has sold loans and raised about $1.4B to facilitate investor payouts and manage liquidity for retail-facing vehicles; this is constructive operationally but highlights reliance on one-off asset sales for cash. Read More.
• Negative Sentiment: Market angst from OBDC II liquidity changes: Blue Owl announced it will halt quarterly redemptions at its retail-targeted fund (OBDC II) and move to periodic distributions as assets are sold — a shift that rattled retail investors and prompted downward pressure on OBDC and other alternative manager stocks. Read More.
• Negative Sentiment: Sector and sentiment hit: Coverage calls this move a sign of private-credit stress and some commentators argue the change reflects shaken investor confidence; Seeking Alpha also debates whether future dividend cuts are already priced in — both increase downside risk and higher yield skepticism. Read More. • Read More.

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.