Blue Owl Technology Finance (NYSE:OTF) Hits New 52-Week Low – Should You Sell?

Blue Owl Technology Finance Corp. (NYSE:OTF) shares hit a new 52-week low on Thursday . The company traded as low as $10.64 and last traded at $10.70, with a volume of 501698 shares changing hands. The stock had previously closed at $10.92.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the company. Truist Financial dropped their target price on Blue Owl Technology Finance from $16.00 to $15.00 and set a “buy” rating on the stock in a report on Tuesday. Royal Bank Of Canada cut their price objective on shares of Blue Owl Technology Finance from $14.00 to $12.00 and set a “sector perform” rating on the stock in a research report on Monday. Zacks Research lowered shares of Blue Owl Technology Finance from a “hold” rating to a “strong sell” rating in a research report on Tuesday, May 12th. Wells Fargo & Company cut their price objective on shares of Blue Owl Technology Finance from $13.00 to $12.00 and set an “overweight” rating on the stock in a research report on Friday, May 8th. Finally, Keefe, Bruyette & Woods cut their price objective 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 report on Tuesday, May 12th. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Blue Owl Technology Finance presently has a consensus rating of “Hold” and a consensus price target of $13.40.

Blue Owl Technology Finance Stock Performance

The company has a market capitalization of $4.96 billion and a PE ratio of 11.92. The business has a 50-day moving average of $11.62.

Blue Owl Technology Finance (NYSE:OTF) last announced its earnings results 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 company had revenue of $325.94 million for the quarter. Blue Owl Technology Finance had a return on equity of 7.43% and a net margin of 32.78%.During the same period in the prior year, the firm earned $0.41 earnings per share. As a group, equities 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 disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th will be given a $0.35 dividend. This is a positive change from Blue Owl Technology Finance’s previous quarterly dividend of $0.05. This represents a $1.40 annualized dividend and a dividend yield of 13.1%. The ex-dividend date of this dividend is Tuesday, June 30th. Blue Owl Technology Finance’s dividend payout ratio (DPR) is currently 155.56%.

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

Insider Activity at Blue Owl Technology Finance

In other Blue Owl Technology Finance news, Director Chris Temple acquired 5,000 shares of Blue Owl Technology Finance stock in a transaction dated Wednesday, February 25th. The stock was bought at an average cost of $11.49 per share, with a total value of $57,450.00. Following the completion of the transaction, the director owned 5,000 shares of the company’s stock, valued at $57,450. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Melissa Weiler acquired 10,000 shares of Blue Owl Technology Finance stock in a transaction dated Wednesday, May 13th. The stock was acquired at an average cost of $10.90 per share, with a total value of $109,000.00. Following the completion of the transaction, the director directly owned 10,000 shares of the company’s stock, valued at $109,000. This trade represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. Insiders bought 17,000 shares of company stock valued at $188,630 over the last three months. 0.05% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of OTF. California State Teachers Retirement System bought a new position in Blue Owl Technology Finance in the first quarter worth $250,556,000. Orange County Employees Retirement System bought a new position in Blue Owl Technology Finance in the fourth quarter worth $116,497,000. Capricorn Investment Group LLC acquired a new position in Blue Owl Technology Finance during the fourth quarter worth $78,915,000. Franklin Resources Inc. raised its stake in Blue Owl Technology Finance by 155,006.8% during the fourth 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, Rivernorth Capital Management LLC raised its stake in Blue Owl Technology Finance by 374.2% during the fourth 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 in 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.