Blue Owl Capital (NYSE:OWL) Issues Earnings Results

Blue Owl Capital (NYSE:OWL) issued its quarterly earnings data on Thursday. The company reported $0.22 EPS for the quarter, meeting analysts’ consensus estimates of $0.22, FiscalAI reports. The firm had revenue of $693.56 million for the quarter, compared to analyst estimates of $693.15 million. Blue Owl Capital had a return on equity of 21.97% and a net margin of 2.96%.

Here are the key takeaways from Blue Owl Capital’s conference call:

• Second-quarter distributable earnings grew 9% year over year, while fee-related earnings reached $0.25 per share and distributable earnings $0.22 per share. Management reaffirmed its expectation to exceed 2026 consensus estimates of $1.02 FRE per share and $0.89 DE per share.
• Blue Owl raised $7.8 billion during the quarter and $50.5 billion over the last 12 months, with institutional and insurance investors accounting for roughly three-quarters of second-quarter equity fundraising. The company also cited $31 billion of AUM not yet paying fees, representing approximately $380 million of expected annual management fees as capital is deployed.
• Real assets continued to be the fastest-growing platform, with AUM up 25% and revenue up 27% year over year; net lease fundraising exceeded its $7.5 billion hard cap, while digital infrastructure expanded to more than 140 data centers and 15.3 gigawatts of capacity.
• Investment performance and credit health remained strong, including a 12-basis-point average annual realized loss rate in direct lending and strong returns from alternative credit, net lease, and non-traded real estate products. Management said redemptions at non-traded BDCs declined in the second quarter and evergreen inflows improved in the July 1 close.
• Direct-lending deployment remained roughly net zero amid moderate sponsor-led M&A activity, and management cautioned that wealth-channel recovery is unlikely to be V-shaped. Executives also acknowledged the possibility of normalization from unusually low credit losses, although they reported no meaningful deterioration in watch lists.

Blue Owl Capital Price Performance

OWL stock traded up $0.07 during trading on Friday, reaching $10.22. 18,938,286 shares of the company were exchanged, compared to its average volume of 26,632,023. The company has a market capitalization of $15.90 billion, a price-to-earnings ratio of 85.10, a P/E/G ratio of 1.03 and a beta of 1.22. The company has a 50-day moving average of $9.50 and a two-hundred day moving average of $10.39. Blue Owl Capital has a twelve month low of $7.95 and a twelve month high of $20.58.

Blue Owl Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Thursday, August 13th will be given a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a yield of 9.0%. The ex-dividend date is Thursday, August 13th. Blue Owl Capital’s dividend payout ratio is currently 766.67%.

Institutional Trading of Blue Owl Capital

A number of hedge funds have recently added to or reduced their stakes in OWL. Royal Bank of Canada lifted its stake in shares of Blue Owl Capital by 50.0% in the 1st quarter. Royal Bank of Canada now owns 397,990 shares of the company’s stock valued at $7,976,000 after acquiring an additional 132,637 shares during the last quarter. Russell Investments Group Ltd. boosted its holdings in shares of Blue Owl Capital by 4.0% during the 2nd quarter. Russell Investments Group Ltd. now owns 44,215 shares of the company’s stock valued at $849,000 after acquiring an additional 1,703 shares in the last quarter. Jump Financial LLC bought a new stake in Blue Owl Capital during the 2nd quarter worth $238,000. California Public Employees Retirement System grew its position in Blue Owl Capital by 28.2% during the 2nd quarter. California Public Employees Retirement System now owns 787,255 shares of the company’s stock worth $15,123,000 after acquiring an additional 172,982 shares during the last quarter. Finally, State Street Corp increased its holdings in Blue Owl Capital by 10.6% in the 2nd quarter. State Street Corp now owns 9,880,565 shares of the company’s stock worth $189,806,000 after purchasing an additional 950,700 shares in the last quarter. Institutional investors and hedge funds own 35.85% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on OWL. Weiss Ratings reissued a “hold (c-)” rating on shares of Blue Owl Capital in a research report on Thursday, June 18th. Credit Suisse Group set a $9.10 price objective on shares of Blue Owl Capital in a research note on Thursday, July 2nd. Citizens Jmp cut their price objective on shares of Blue Owl Capital from $21.00 to $17.00 and set a “market outperform” rating for the company in a report on Thursday, July 9th. Capital One Financial set a $11.00 target price on shares of Blue Owl Capital in a research report on Monday, July 13th. Finally, Piper Sandler lowered their target price on shares of Blue Owl Capital from $15.00 to $12.50 and set an “overweight” rating on the stock in a report on Tuesday, April 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $13.22.

Blue Owl Capital News Roundup

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

• Positive Sentiment: Blue Owl reported second-quarter earnings of $0.22 per share, matching analysts’ expectations and improving from $0.21 a year earlier. Revenue of $693.56 million slightly exceeded the $693.15 million consensus estimate. Blue Owl Capital earnings report
• Positive Sentiment: Revenue rose 7% and assets under management increased 12% to approximately $319 billion, supported by fundraising and continued investment performance across the company’s platforms. OWL Q2 earnings meet estimates
• Positive Sentiment: Management emphasized diversification beyond direct lending. Real assets fundraising exceeded credit fundraising during the quarter, while data-center and artificial-intelligence infrastructure financing provided additional growth opportunities. Blue Owl leans into real assets
• Positive Sentiment: Blue Owl declared a quarterly dividend of $0.23 per share, equivalent to an annualized yield of roughly 9%, which may appeal to income-focused investors. The dividend is payable August 27 to shareholders of record August 13. Blue Owl second-quarter results
• Neutral Sentiment: Barclays raised its price target from $9 to $10 but maintained an “equal weight” rating, indicating limited expected near-term upside at current levels. Barclays price target update
• Negative Sentiment: Private-credit fundraising fell sharply, reportedly reaching its slowest pace in three years, while credit-related outflows weighed on the quarter. The weaker fundraising trend raises questions about future fee growth. Blue Owl private credit fundraising
• Negative Sentiment: Analysts have cited pressure on dividend coverage and net asset value, creating a risk that the high dividend may be reduced if earnings or portfolio values deteriorate. Blue Owl Capital rating downgrade

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.