Blue Owl Technology Finance (NYSE:OTF) Posts Earnings Results, Misses Expectations By $0.02 EPS

Blue Owl Technology Finance (NYSE:OTF) posted its quarterly earnings results on Wednesday. The company reported $0.30 EPS for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.02), FiscalAI reports. The company had revenue of $320.58 million during the quarter, compared to the consensus estimate of $326.27 million. Blue Owl Technology Finance had a return on equity of 6.92% and a net margin of 62.89%.

Blue Owl Technology Finance Trading Down 2.6%

Shares of NYSE OTF opened at $12.30 on Friday. Blue Owl Technology Finance has a 12-month low of $11.73 and a 12-month high of $21.62. The firm has a market cap of $5.76 billion and a price-to-earnings ratio of 7.24.

Blue Owl Technology Finance Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be paid a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 11.4%. 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, March 31st. Blue Owl Technology Finance’s payout ratio is presently 80.46%.

Institutional Investors Weigh In On Blue Owl Technology Finance

A number of institutional investors have recently added to or reduced their stakes in the stock. Orange County Employees Retirement System bought a new position in Blue Owl Technology Finance in the fourth quarter worth about $116,497,000. Capricorn Investment Group LLC purchased a new stake in Blue Owl Technology Finance during the fourth quarter valued at approximately $78,915,000. Franklin Resources Inc. boosted its stake in Blue Owl Technology Finance by 155,006.8% in the fourth quarter. Franklin Resources Inc. now owns 1,754,258 shares of the company’s stock valued at $25,507,000 after acquiring an additional 1,753,127 shares in the last quarter. Rivernorth Capital Management LLC grew its holdings in Blue Owl Technology Finance by 374.2% in the fourth quarter. Rivernorth Capital Management LLC now owns 1,934,726 shares of the company’s stock worth $28,131,000 after purchasing an additional 1,526,695 shares during the last quarter. Finally, Ares Management LLC increased its position in shares of Blue Owl Technology Finance by 111.5% during the fourth quarter. Ares Management LLC now owns 1,140,168 shares of the company’s stock worth $16,578,000 after purchasing an additional 601,104 shares in the last quarter.

Blue Owl Technology Finance announced that its board has authorized a share repurchase program on Wednesday, February 18th that authorizes the company to buyback $300.00 million in shares. This buyback authorization authorizes the company to reacquire up to 5.1% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

Separately, Zacks Research raised shares of Blue Owl Technology Finance from a “strong sell” rating to a “hold” rating in a research report on Monday, January 26th. One research analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock presently has an average rating of “Hold”.

About Blue Owl Technology Finance

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.