Blue Owl Capital (NYSE:OWL) Shares Gap Up – Here’s Why

Blue Owl Capital Inc. (NYSE:OWL) gapped up before the market opened on Thursday . The stock had previously closed at $8.64, but opened at $9.20. Blue Owl Capital shares last traded at $9.1540, with a volume of 7,438,709 shares traded.

Wall Street Analyst Weigh In

OWL has been the topic of several recent analyst reports. The Goldman Sachs Group reduced their target price on shares of Blue Owl Capital from $14.00 to $9.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 7th. Piper Sandler dropped their price target on shares of Blue Owl Capital from $15.00 to $12.50 and set an “overweight” rating for the company in a research note on Tuesday, April 7th. JPMorgan Chase & Co. reduced their price objective on shares of Blue Owl Capital from $19.00 to $10.50 and set a “neutral” rating on the stock in a research report on Wednesday, April 29th. TD Cowen reissued a “buy” rating and issued a $14.00 price objective on shares of Blue Owl Capital in a research note on Monday, May 18th. Finally, BMO Capital Markets dropped their target price on Blue Owl Capital from $15.00 to $11.00 and set an “outperform” rating for the company in a research report on Tuesday, March 24th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, Blue Owl Capital presently has a consensus rating of “Moderate Buy” and a consensus price target of $14.04.

Blue Owl Capital Stock Up 5.9%

The firm has a 50 day moving average of $9.63 and a 200-day moving average of $11.28. The company has a market cap of $14.22 billion, a P/E ratio of 76.31, a PEG ratio of 0.92 and a beta of 1.22.

Blue Owl Capital (NYSE:OWL) last issued its earnings results on Thursday, April 30th. The company reported $0.19 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.19. Blue Owl Capital had a return on equity of 21.97% and a net margin of 2.96%.The business had revenue of $699.88 million during the quarter, compared to analyst estimates of $687.23 million. On average, research analysts predict that Blue Owl Capital Inc. will post 0.88 EPS for the current fiscal year.

Blue Owl Capital Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Investors of record on Wednesday, May 13th were paid a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a yield of 10.1%. This is a boost from Blue Owl Capital’s previous quarterly dividend of $0.23. The ex-dividend date of this dividend was Wednesday, May 13th. Blue Owl Capital’s payout ratio is currently 766.67%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in OWL. Norges Bank purchased a new stake in shares of Blue Owl Capital in the 4th quarter worth approximately $140,643,000. William Blair Investment Management LLC bought a new position in Blue Owl Capital in the fourth quarter worth approximately $113,782,000. Boston Partners raised its stake in Blue Owl Capital by 121.9% in the third quarter. Boston Partners now owns 12,153,776 shares of the company’s stock worth $205,493,000 after buying an additional 6,677,610 shares in the last quarter. Renaissance Technologies LLC lifted its holdings in Blue Owl Capital by 2,107.1% during the first quarter. Renaissance Technologies LLC now owns 6,065,200 shares of the company’s stock worth $55,375,000 after buying an additional 5,790,400 shares during the period. Finally, Capital World Investors lifted its holdings in Blue Owl Capital by 5.9% during the fourth quarter. Capital World Investors now owns 90,245,690 shares of the company’s stock worth $1,348,272,000 after buying an additional 5,029,134 shares during the period. 35.85% of the stock is currently owned by institutional investors.

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.