Blue Owl Technology Finance (NYSE:OTF) Reaches New 1-Year Low – Should You Sell?

Blue Owl Technology Finance Corp. (NYSE:OTF) shares reached a new 52-week low during trading on Thursday . The stock traded as low as $10.89 and last traded at $10.9360, with a volume of 520265 shares trading hands. The stock had previously closed at $11.16.

Analyst Ratings Changes

Several research firms have recently commented on OTF. Keefe, Bruyette & Woods reduced their price target on Blue Owl Technology Finance from $16.00 to $13.00 and set a “market perform” rating for the company in a report on Monday, February 23rd. Truist Financial dropped their price objective on Blue Owl Technology Finance from $17.00 to $16.00 and set a “buy” rating for the company in a research note on Monday, February 23rd. Wells Fargo & Company dropped their price objective on Blue Owl Technology Finance from $15.00 to $13.00 and set an “overweight” rating for the company in a research note on Friday, February 20th. Finally, Zacks Research raised Blue Owl Technology Finance from a “strong sell” rating to a “hold” rating in a research note on Monday, January 26th. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $14.00.

Blue Owl Technology Finance Stock Down 1.3%

The stock has a market capitalization of $5.08 billion and a PE ratio of 6.48. The stock’s 50 day moving average is $12.14.

Blue Owl Technology Finance (NYSE:OTF) last released its quarterly earnings data on Wednesday, February 18th. The company reported $0.30 earnings per share for the quarter, missing the consensus estimate of $0.32 by ($0.02). Blue Owl Technology Finance had a net margin of 62.89% and a return on equity of 6.91%. The firm had revenue of $223.52 million during the quarter, compared to analysts’ expectations of $326.27 million.

Blue Owl Technology Finance Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be issued a dividend of $0.35 per share. This is a boost from Blue Owl Technology Finance’s previous quarterly dividend of $0.05. The ex-dividend date is Tuesday, March 31st. This represents a $1.40 dividend on an annualized basis and a yield of 12.7%. Blue Owl Technology Finance’s payout ratio is currently 82.35%.

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

Insider Buying and Selling

In related news, Director Chris Temple bought 5,000 shares of the stock in a transaction on Wednesday, February 25th. The shares were purchased at an average price of $11.49 per share, for a total transaction of $57,450.00. Following the acquisition, the director owned 5,000 shares in the company, valued at $57,450. This represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website.

Institutional Investors Weigh In On Blue Owl Technology Finance

A number of large investors have recently bought and sold shares of the stock. NewEdge Wealth LLC grew its holdings in Blue Owl Technology Finance by 3.3% during the 4th quarter. NewEdge Wealth LLC now owns 69,925 shares of the company’s stock valued at $1,017,000 after buying an additional 2,218 shares during the last quarter. Lido Advisors LLC grew its holdings in Blue Owl Technology Finance by 22.6% during the 4th quarter. Lido Advisors LLC now owns 14,545 shares of the company’s stock valued at $208,000 after buying an additional 2,683 shares during the last quarter. Newbridge Financial Services Group Inc. acquired a new stake in Blue Owl Technology Finance during the 4th quarter valued at $44,000. Blair William & Co. IL grew its holdings in Blue Owl Technology Finance by 41.4% during the 4th quarter. Blair William & Co. IL now owns 14,807 shares of the company’s stock valued at $215,000 after buying an additional 4,334 shares during the last quarter. Finally, Clearstead Advisors LLC acquired a new stake in Blue Owl Technology Finance during the 4th quarter valued at $124,000.

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.