Blue Owl Technology Finance (NYSE:OTF) Reaches New 12-Month Low – Time to Sell?

Blue Owl Technology Finance Corp. (NYSE:OTF)’s share price hit a new 52-week low during trading on Wednesday . The stock traded as low as $10.62 and last traded at $10.67, with a volume of 1899504 shares. The stock had previously closed at $10.63.

Wall Street Analyst Weigh In

Several brokerages have commented on OTF. Wells Fargo & Company dropped their price target 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. Zacks Research lowered shares of Blue Owl Technology Finance from a “hold” rating to a “strong sell” rating in a research note on Tuesday, May 12th. Truist Financial cut their target price on shares of Blue Owl Technology Finance from $16.00 to $15.00 and set a “buy” rating for the company in a research note on Tuesday, May 19th. Citizens Jmp cut their target price on shares of Blue Owl Technology Finance from $17.00 to $16.00 and set a “market outperform” rating for the company in a research note on Wednesday, April 22nd. Finally, Royal Bank Of Canada cut their target price on shares of Blue Owl Technology Finance from $14.00 to $12.00 and set a “sector perform” rating for the company in a research note on Monday, May 18th. Three research analysts have rated the stock with 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 an average rating of “Hold” and an average price target of $13.40.

Blue Owl Technology Finance Stock Up 1.7%

The firm has a market capitalization of $5.04 billion and a price-to-earnings ratio of 12.10. The business’s 50 day moving average is $11.48.

Blue Owl Technology Finance (NYSE:OTF) last posted its quarterly earnings data on Wednesday, May 6th. The company reported $0.29 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.31 by ($0.02). The company had revenue of $222.12 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 quarter in the previous year, the firm posted $0.41 EPS. On average, research analysts anticipate that Blue Owl Technology Finance Corp. will post 1.26 EPS for the current year.

Blue Owl Technology Finance Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 12.9%. The ex-dividend date is Tuesday, June 30th. This is a boost from Blue Owl Technology Finance’s previous quarterly dividend of $0.05. Blue Owl Technology Finance’s dividend payout ratio is presently 155.56%.

Blue Owl Technology Finance announced that its board has initiated a stock buyback program 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 programs are often an indication that the company’s management believes its shares are undervalued.

Insider Activity

In related news, Director Melissa Weiler acquired 10,000 shares of the business’s stock in a transaction on Wednesday, May 13th. The shares were purchased at an average price of $10.90 per share, for a total transaction of $109,000.00. Following the acquisition, the director owned 10,000 shares in the company, valued at approximately $109,000. This represents a ? increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Chris Temple acquired 7,000 shares of the business’s stock in a transaction on Friday, May 22nd. The shares were bought at an average price of $10.71 per share, for a total transaction of $74,970.00. Following the acquisition, the director owned 12,000 shares in the company, valued at approximately $128,520. This trade represents a 140.00% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders have acquired 18,000 shares of company stock worth $194,710. Corporate insiders own 0.05% of the company’s stock.

Institutional Trading of Blue Owl Technology Finance

Several institutional investors and hedge funds have recently bought and sold shares of the stock. California State Teachers Retirement System acquired a new stake in Blue Owl Technology Finance during the 1st quarter worth about $250,556,000. Orange County Employees Retirement System acquired a new stake in Blue Owl Technology Finance during the 4th quarter worth about $116,497,000. Capricorn Investment Group LLC acquired a new stake in Blue Owl Technology Finance during the 4th quarter worth about $78,915,000. Rivernorth Capital Management LLC raised its holdings in Blue Owl Technology Finance by 12.5% during the 1st quarter. Rivernorth Capital Management LLC now owns 2,176,269 shares of the company’s stock worth $26,964,000 after buying an additional 241,543 shares during the period. Finally, Franklin Resources Inc. grew its stake in Blue Owl Technology Finance by 155,006.8% during the 4th 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.

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.