Blue Owl Capital (NYSE:OWL) Sets New 52-Week Low – Should You Sell?

Blue Owl Capital Inc. (NYSE:OWL) reached a new 52-week low during mid-day trading on Friday . The stock traded as low as $10.51 and last traded at $11.1190, with a volume of 8842412 shares changing hands. The stock had previously closed at $11.58.

Blue Owl Capital News Roundup

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

• Positive Sentiment: Analyst support: Raymond James reaffirmed a “strong-buy” on OWL, calling some market reaction overblown and supporting the stock versus recent headlines. Read More.
• Positive Sentiment: Fund-level results & capital return: Blue Owl’s BDCs and affiliated OTF reported Q4 results showing NAV stability, declared dividends and new $300m repurchase programs — signals of management confidence and cash distribution capacity. Read More. Read More.
• Neutral Sentiment: New lending relationship: Blue Owl funds were added as lenders to Fundbox’s credit facility, signaling ongoing institutional origination activity even amid headlines. Read More.
• Neutral Sentiment: Company framing of asset sale: Blue Owl says the $1.4bn of direct loans were sold opportunistically at ~99.7% of par to institutional buyers, delivering substantial return of capital to certain retail fund shareholders — management argues this was orderly portfolio management. Read More.
• Negative Sentiment: Redemptions halted at retail private-credit fund: Blue Owl permanently halted quarterly redemptions at its OBDC II retail vehicle, a move that triggered selling pressure and raised liquidity concerns among retail investors and advisors. Read More.
• Negative Sentiment: Industry concern and negative press flow: Multiple outlets (NYT, InvestmentNews, WSJ) flagged the loan sale and redemption halt as signaling private-credit liquidity and valuation stress — amplifying investor fear about retail access to private credit. Read More. Read More. Read More.
• Negative Sentiment: Market tests valuations: Coverage notes the $1.4bn sale is testing private-credit pricing and market appetite (pension and insurance buyers picked up the assets) — investors worry about how widely applicable those prices are across portfolios. Read More.
• Negative Sentiment: Bearish positioning: Unusually large put-option purchases (roughly 106,782 puts, ~252% above average) indicate traders are betting on further share weakness, which can accelerate downward moves. Read More.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on OWL shares. Raymond James Financial restated a “strong-buy” rating on shares of Blue Owl Capital in a report on Thursday. Weiss Ratings reissued a “hold (c)” rating on shares of Blue Owl Capital in a research note on Wednesday, January 21st. Piper Sandler cut their price objective on Blue Owl Capital from $21.00 to $15.00 and set an “overweight” rating on the stock in a report on Friday, February 6th. TD Cowen reiterated a “buy” rating on shares of Blue Owl Capital in a report on Wednesday, January 14th. Finally, Oppenheimer dropped their target price on shares of Blue Owl Capital from $27.00 to $24.00 and set an “outperform” rating on the stock in a research report on Friday, February 6th. Two investment analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $19.57.

Blue Owl Capital Stock Performance

The stock has a market cap of $17.29 billion, a price-to-earnings ratio of 110.97, a price-to-earnings-growth ratio of 0.98 and a beta of 1.11. The company’s 50 day simple moving average is $14.51 and its two-hundred day simple moving average is $16.14.

Blue Owl Capital (NYSE:OWL) last issued its earnings results on Thursday, February 5th. The company reported $0.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.22 by $0.05. Blue Owl Capital had a net margin of 2.75% and a return on equity of 20.70%. The company had revenue of $701.47 million during the quarter, compared to analyst estimates of $712.75 million. On average, equities research analysts predict that Blue Owl Capital Inc. will post 0.92 earnings per share for the current fiscal year.

Blue Owl Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 2nd. Shareholders of record on Friday, February 20th will be paid a $0.225 dividend. The ex-dividend date is Friday, February 20th. This represents a $0.90 dividend on an annualized basis and a yield of 8.1%. Blue Owl Capital’s payout ratio is 900.00%.

Insider Transactions at Blue Owl Capital

In other news, insider Craig Packer purchased 110,227 shares of the business’s stock in a transaction dated Tuesday, December 2nd. The stock was bought at an average cost of $15.06 per share, with a total value of $1,660,018.62. Following the purchase, the insider directly owned 94,000 shares of the company’s stock, valued at approximately $1,415,640. This trade represents a -679.28% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Douglas I. Ostrover purchased 139,327 shares of Blue Owl Capital stock in a transaction dated Tuesday, December 2nd. The shares were purchased at an average price of $15.06 per share, with a total value of $2,098,264.62. Following the completion of the acquisition, the chief executive officer owned 158,000 shares in the company, valued at $2,379,480. The trade was a 746.14% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders purchased 395,670 shares of company stock valued at $5,952,393. 27.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Alberta Investment Management Corp bought a new stake in Blue Owl Capital in the fourth quarter worth $1,273,000. NewEdge Advisors LLC lifted its position in shares of Blue Owl Capital by 11.8% in the fourth quarter. NewEdge Advisors LLC now owns 354,023 shares of the company’s stock worth $5,289,000 after buying an additional 37,412 shares during the last quarter. Cat Rock Capital Management LP lifted its position in shares of Blue Owl Capital by 0.6% in the fourth quarter. Cat Rock Capital Management LP now owns 1,220,586 shares of the company’s stock worth $18,236,000 after buying an additional 7,840 shares during the last quarter. XTX Topco Ltd acquired a new position in shares of Blue Owl Capital during the 4th quarter valued at about $5,049,000. Finally, nVerses Capital LLC acquired a new position in shares of Blue Owl Capital during the 4th quarter valued at about $150,000. Institutional investors and hedge funds own 35.85% of the company’s stock.

Blue Owl Capital Company Profile

Blue Owl Capital is a global alternative asset manager that focuses on private credit, direct lending and equity-related strategies for institutional investors. Headquartered in New York, the firm develops and manages a range of private markets products designed to provide capital solutions to middle-market and larger corporate borrowers, as well as liquidity and partnership arrangements with private equity firms and other alternative managers.

Its core activities include direct lending and credit strategies that provide senior, unitranche and other structured loan products to companies across industries.