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

Shares of Blue Owl Technology Finance Corp. (NYSE:OTF) reached a new 52-week low during trading on Wednesday . The company traded as low as $10.12 and last traded at $10.1660, with a volume of 1563137 shares traded. The stock had previously closed at $10.26.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on OTF shares. Royal Bank Of Canada lowered their price objective on Blue Owl Technology Finance from $14.00 to $12.00 and set a “sector perform” rating on the stock in a report on Monday, May 18th. Citizens Jmp dropped their price target on Blue Owl Technology Finance from $17.00 to $16.00 and set a “market outperform” rating for the company in a research report on Wednesday, April 22nd. Zacks Research raised Blue Owl Technology Finance from a “strong sell” rating to a “hold” rating in a research note on Wednesday, June 10th. Wells Fargo & Company decreased their price objective on Blue Owl Technology Finance from $13.00 to $12.00 and set an “overweight” rating on the stock in a report on Friday, May 8th. Finally, Keefe, Bruyette & Woods lowered their target price on shares of Blue Owl Technology Finance from $13.00 to $12.00 and set a “market perform” rating on the stock in a research note on Tuesday, May 12th. Three equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $13.40.

Blue Owl Technology Finance Price Performance

The firm has a 50 day simple moving average of $10.84. The company has a market capitalization of $4.80 billion and a price-to-earnings ratio of 11.52.

Blue Owl Technology Finance (NYSE:OTF) last announced its quarterly earnings data on Wednesday, May 6th. The company reported $0.29 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.31 by ($0.02). The firm had revenue of $222.12 million during the quarter. Blue Owl Technology Finance had a net margin of 32.78% and a return on equity of 7.43%. During the same period in the prior year, the company earned $0.41 earnings per share. Analysts predict that Blue Owl Technology Finance Corp. will post 1.26 EPS for the current year.

Blue Owl Technology Finance Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be paid a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 13.5%. This is a positive change from Blue Owl Technology Finance’s previous quarterly dividend of $0.05. The ex-dividend date of this dividend is Tuesday, June 30th. Blue Owl Technology Finance’s payout ratio is 155.56%.

Insider Activity

In other news, Director Melissa Weiler bought 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 13th. The shares were purchased at an average price of $10.90 per share, with a total value of $109,000.00. Following the purchase, the director owned 10,000 shares in the company, valued at approximately $109,000. The trade was a ∞ increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Chris Temple bought 7,000 shares of the stock in a transaction that occurred on Friday, May 22nd. The shares were purchased at an average price of $10.71 per share, with a total value of $74,970.00. Following the completion of the acquisition, the director directly owned 12,000 shares in the company, valued at $128,520. This trade represents a 140.00% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders have acquired 18,000 shares of company stock valued at $194,710. 0.05% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in OTF. Newbridge Financial Services Group Inc. acquired a new position in shares of Blue Owl Technology Finance in the fourth quarter worth $44,000. Clearstead Advisors LLC purchased a new stake in Blue Owl Technology Finance during the 4th quarter worth about $124,000. Abel Hall LLC acquired a new position in Blue Owl Technology Finance in the first quarter valued at approximately $124,000. Kestra Advisory Services LLC acquired a new stake in Blue Owl Technology Finance during the fourth quarter worth approximately $128,000. Finally, Cornerstone Partners Capital Management LLC purchased a new stake in shares of Blue Owl Technology Finance during the 4th quarter worth approximately $146,000.

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.