Blue Owl Technology Finance (NYSE:OTF) Reaches New 12-Month Low – Should You Sell?

Shares of Blue Owl Technology Finance Corp. (NYSE:OTF) reached a new 52-week low on Thursday . The company traded as low as $10.64 and last traded at $10.70, with a volume of 501698 shares traded. The stock had previously closed at $10.92.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Citizens Jmp decreased their price target on shares of Blue Owl Technology Finance from $17.00 to $16.00 and set a “market outperform” rating for the company in a research report on Wednesday, April 22nd. Zacks Research downgraded shares of Blue Owl Technology Finance from a “hold” rating to a “strong sell” rating in a report on Tuesday, May 12th. Royal Bank Of Canada decreased their price objective on shares of Blue Owl Technology Finance from $14.00 to $12.00 and set a “sector perform” rating for the company in a report on Monday, May 18th. Wells Fargo & Company decreased their price objective on shares of Blue Owl Technology Finance from $13.00 to $12.00 and set an “overweight” rating for the company in a report on Friday, May 8th. Finally, Truist Financial decreased their price objective on shares of Blue Owl Technology Finance from $16.00 to $15.00 and set a “buy” rating for the company in a report on Tuesday. Three research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $13.40.

Blue Owl Technology Finance Stock Performance

The firm has a market capitalization of $4.92 billion and a PE ratio of 11.82. The business has a fifty day simple moving average of $11.58.

Blue Owl Technology Finance (NYSE:OTF) last released its quarterly earnings data on Wednesday, May 6th. The company reported $0.29 EPS for the quarter, missing analysts’ consensus estimates of $0.31 by ($0.02). The business had revenue of $325.94 million during the quarter. Blue Owl Technology Finance had a return on equity of 7.43% and a net margin of 32.78%.During the same period in the previous year, the company posted $0.41 earnings per share. On average, equities analysts anticipate that Blue Owl Technology Finance Corp. will post 1.26 earnings per share for the current fiscal year.

Blue Owl Technology Finance Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th will be issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 13.2%. This is a positive change from Blue Owl Technology Finance’s previous quarterly dividend of $0.05. The ex-dividend date of this dividend is Tuesday, June 30th. Blue Owl Technology Finance’s dividend payout ratio is presently 155.56%.

Blue Owl Technology Finance declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, February 18th that permits the company to buyback $300.00 million in shares. This buyback authorization permits the company to buy up to 5.1% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling at Blue Owl Technology Finance

In other news, Director Melissa Weiler purchased 10,000 shares of Blue Owl Technology Finance stock in a transaction dated Wednesday, May 13th. The stock was bought at an average price of $10.90 per share, with a total value of $109,000.00. Following the completion of the acquisition, the director owned 10,000 shares in the company, valued at $109,000. The trade was a ? increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Chris Temple purchased 5,000 shares of Blue Owl Technology Finance stock in a transaction dated Wednesday, February 25th. The shares were purchased at an average cost of $11.49 per share, with a total value of $57,450.00. Following the acquisition, the director owned 5,000 shares of the company’s stock, valued at approximately $57,450. This trade represents a ? increase in their position. The SEC filing for this purchase provides additional information. In the last three months, insiders have bought 17,000 shares of company stock valued at $188,630. Corporate insiders own 0.05% of the company’s stock.

Hedge Funds Weigh In On Blue Owl Technology Finance

Several hedge funds and other institutional investors have recently modified their holdings of the company. California State Teachers Retirement System acquired a new position in shares of Blue Owl Technology Finance during the first quarter valued at $250,556,000. Orange County Employees Retirement System bought a new stake in shares of Blue Owl Technology Finance during the fourth quarter valued at about $116,497,000. Capricorn Investment Group LLC bought a new stake in shares of Blue Owl Technology Finance during the fourth quarter valued at about $78,915,000. Rivernorth Capital Management LLC raised its stake in shares of Blue Owl Technology Finance by 12.5% during the first quarter. Rivernorth Capital Management LLC now owns 2,176,269 shares of the company’s stock valued at $26,964,000 after purchasing an additional 241,543 shares in the last quarter. Finally, Franklin Resources Inc. raised its stake in shares of Blue Owl Technology Finance by 155,006.8% during the fourth quarter. Franklin Resources Inc. now owns 1,754,258 shares of the company’s stock valued at $25,507,000 after purchasing an additional 1,753,127 shares in the last quarter.

Blue Owl Technology Finance Company Profile

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.