Blue Owl Capital (NYSE:OWL) Shares Gap Down – Should You Sell?

Blue Owl Capital Inc. (NYSE:OWL) shares gapped down before the market opened on Thursday . The stock had previously closed at $9.02, but opened at $8.58. Blue Owl Capital shares last traded at $8.9050, with a volume of 9,370,613 shares traded.

Key Blue Owl Capital News

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

• Positive Sentiment: Blue Owl is shifting into digital infrastructure and targeting wealth-channel and embedded deployment to convert AI/infrastructure exposure into recurring fee growth, which could support long-term revenue visibility. Blue Owl’s Digital Infrastructure Bet and the Next Phase for OWL
• Positive Sentiment: Blue Owl and Blackstone took a minority stake in U.S. PE firm Atlas — a strategic partnership that can expand deal flow and fee opportunities in private markets. Blackstone, Blue Owl Take Minority Stake In U.S. Private Equity Firm Atlas
• Neutral Sentiment: OWL’s valuation and payout profile (about 9.24x forward EPS and a 22.5¢ dividend) make it look cheap on multiples, but investors debate whether that’s justified given execution and liquidity risks. Should You Sell OWL Stock at 9.24X Earnings and a 22.5-Cent Dividend?
• Neutral Sentiment: Unusually high options volume points to elevated short-term trading activity and hedging interest; this can amplify moves but is not directional by itself. Blue Owl Capital Sees Unusually High Options Volume (NYSE:OWL)
• Negative Sentiment: Major concern: an investment fund (Glendon) publicly questioned valuations in Blue Owl’s private credit portfolio, reported by the FT, triggering investor worries about mark accuracy and potential write?downs. Investment fund questions valuations in Blue Owl’s private credit portfolio
• Negative Sentiment: Zacks and Seeking Alpha coverage tie the stock’s recent slump to private-credit liquidity fears, fee timing uncertainty and borrower-quality worries—factors that pressure investor sentiment and can suppress the multiple. OWL Stock Slump Explained as Liquidity Fears Meet Fee Visibility Blue Owl private credit valuations questioned by Glendon: FT
• Negative Sentiment: Broad weakness in private-equity/alternative asset stocks (many down sharply recently) is amplifying outflows and sentiment-driven selling for OWL. Private equity stocks down 30-40% in three months, bigger worry than geopolitical risk

Analyst Upgrades and Downgrades

Several equities analysts have commented on OWL shares. Piper Sandler dropped their price target on shares of Blue Owl Capital from $21.00 to $15.00 and set an “overweight” rating for the company in a research note on Friday, February 6th. Weiss Ratings reiterated a “hold (c)” rating on shares of Blue Owl Capital in a report on Wednesday, January 21st. Barclays restated an “equal weight” rating and set a $11.00 price target (down from $15.00) on shares of Blue Owl Capital in a report on Monday, March 2nd. Oppenheimer cut their target price on shares of Blue Owl Capital from $24.00 to $17.00 and set an “outperform” rating on the stock in a research note on Wednesday, March 4th. Finally, Raymond James Financial reaffirmed a “strong-buy” rating on shares of Blue Owl Capital in a report on Thursday, February 19th. Two investment analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Blue Owl Capital has an average rating of “Moderate Buy” and a consensus price target of $18.00.

Blue Owl Capital Trading Down 2.5%

The firm’s fifty day moving average price is $13.09 and its 200-day moving average price is $15.24. The firm has a market cap of $13.67 billion, a price-to-earnings ratio of 88.69, a PEG ratio of 0.84 and a beta of 1.15.

Blue Owl Capital (NYSE:OWL) last released its quarterly earnings results on Thursday, February 5th. The company reported $0.27 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.22 by $0.05. Blue Owl Capital had a return on equity of 20.93% and a net margin of 2.75%.The firm had revenue of $701.47 million for the quarter, compared to the consensus estimate of $712.75 million. On average, sell-side analysts expect that Blue Owl Capital Inc. will post 0.92 earnings per share for the current year.

Blue Owl Capital Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, March 2nd. Stockholders of record on Friday, February 20th were paid a dividend of $0.225 per share. This represents a $0.90 annualized dividend and a dividend yield of 10.2%. The ex-dividend date was Friday, February 20th. Blue Owl Capital’s dividend payout ratio is 900.00%.

Institutional Trading of Blue Owl Capital

Several hedge funds have recently made changes to their positions in OWL. Arax Advisory Partners purchased a new stake in shares of Blue Owl Capital in the fourth quarter valued at about $25,000. Roxbury Financial LLC lifted its position in Blue Owl Capital by 383.6% in the fourth quarter. Roxbury Financial LLC now owns 1,765 shares of the company’s stock valued at $26,000 after purchasing an additional 1,400 shares during the period. Toronto Dominion Bank purchased a new stake in Blue Owl Capital in the 4th quarter valued at approximately $26,000. Parkside Financial Bank & Trust boosted its holdings in Blue Owl Capital by 117.0% during the third quarter. Parkside Financial Bank & Trust now owns 1,608 shares of the company’s stock worth $27,000 after buying an additional 867 shares in the last quarter. Finally, Lavaca Capital LLC acquired a new position in Blue Owl Capital during the fourth quarter worth about $28,000. Institutional investors and hedge funds own 35.85% of the company’s stock.

About Blue Owl Capital

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.