Blue Owl Capital (NYSE:OWL) Posts Earnings Results, Meets Expectations

Blue Owl Capital (NYSE:OWL) posted its quarterly earnings results on Thursday. The company reported $0.22 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.22, FiscalAI reports. The business had revenue of $693.56 million for the quarter, compared to analyst estimates of $693.15 million. Blue Owl Capital had a net margin of 2.71% and a return on equity of 22.76%.

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 Stock Up 1.7%

Blue Owl Capital stock traded up $0.17 during trading hours on Friday, hitting $10.33. The stock had a trading volume of 26,991,120 shares, compared to its average volume of 15,247,891. The stock has a market cap of $16.06 billion, a price-to-earnings ratio of 86.09, a P/E/G ratio of 1.09 and a beta of 1.22. Blue Owl Capital has a one year low of $7.95 and a one year high of $20.58. The business’s 50 day simple moving average is $9.50 and its 200-day simple moving average is $10.39.

Blue Owl Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Thursday, August 13th will be issued a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a yield of 8.9%. The ex-dividend date of this dividend is Thursday, August 13th. Blue Owl Capital’s dividend payout ratio is presently 766.67%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Boston Partners raised its holdings in Blue Owl Capital by 121.9% in the 3rd quarter. Boston Partners now owns 12,153,776 shares of the company’s stock valued at $205,493,000 after buying an additional 6,677,610 shares during the last quarter. RDST Capital LLC increased its position in Blue Owl Capital by 39.5% in the 4th quarter. RDST Capital LLC now owns 6,265,485 shares of the company’s stock valued at $93,606,000 after acquiring an additional 1,774,670 shares during the period. Bank of America Corp DE raised its stake in shares of Blue Owl Capital by 8.4% during the third quarter. Bank of America Corp DE now owns 22,563,953 shares of the company’s stock valued at $382,008,000 after acquiring an additional 1,751,024 shares during the last quarter. Advent International L.P. raised its stake in shares of Blue Owl Capital by 22.1% during the fourth quarter. Advent International L.P. now owns 6,686,817 shares of the company’s stock valued at $99,901,000 after acquiring an additional 1,209,910 shares during the last quarter. Finally, Soros Fund Management LLC acquired a new position in shares of Blue Owl Capital during the fourth quarter worth $17,727,000. Institutional investors and hedge funds own 35.85% of the company’s stock.

Analyst Ratings Changes

OWL has been the subject of several research analyst reports. TD Cowen restated a “buy” rating and set a $14.00 price objective on shares of Blue Owl Capital in a research report on Monday, May 18th. Piper Sandler decreased their price target on Blue Owl Capital from $15.00 to $12.50 and set an “overweight” rating on the stock in a research note on Tuesday, April 7th. BMO Capital Markets lowered their price target on Blue Owl Capital from $12.00 to $11.00 and set an “outperform” rating for the company in a report on Monday, July 13th. Oppenheimer dropped their price objective on Blue Owl Capital from $16.00 to $15.00 and set an “outperform” rating for the company in a research report on Friday, July 17th. Finally, Credit Suisse Group set a $9.10 price objective on Blue Owl Capital in a research note on Thursday, July 2nd. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, the company currently 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: Q2 results met expectations and growth remained solid. Blue Owl reported adjusted earnings of $0.22 per share, in line with consensus, while revenue of $693.6 million slightly exceeded estimates and increased about 7% year over year. Assets under management rose 12% to approximately $319 billion, supported by fundraising and investment performance. OWL Q2 Earnings Meet Estimates on Revenue and AUM Growth
• Positive Sentiment: Business diversification is helping offset weakness in private credit. Real assets fundraising surpassed credit fundraising during the quarter, while data-center and artificial-intelligence-related financing provided additional growth opportunities. Management also said withdrawals from lending vehicles eased. Blue Owl Leans Into Real Assets to Buffer Private-Credit Woes
• Positive Sentiment: The dividend supports income-oriented investors. Blue Owl declared a quarterly dividend of $0.23 per share, equivalent to an annualized yield of roughly 9% at the referenced share price. The dividend is payable August 27 to shareholders of record August 13. Blue Owl Capital Second-Quarter Earnings and Assets Under Management
• Neutral Sentiment: Barclays raised its price target but retained an Equal Weight rating. The target increased from $9 to $10, indicating limited expected upside based on the referenced trading level. Benzinga analyst update
• Negative Sentiment: Fundraising momentum in private credit weakened. Reports indicated fundraising fell 37% and credit strategies experienced outflows, highlighting pressure in Blue Owl’s core lending business despite stronger results elsewhere. Blue Owl’s Private Credit Fundraising Falls
• Negative Sentiment: Analysts continue to flag dividend coverage and valuation risks, including potential NAV pressure and the possibility of future reductions in distributions across Blue Owl’s credit ecosystem. 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.