Blue Owl Technology Finance (NYSE:OTF) Hits New 52-Week Low – Should You Sell?

Blue Owl Technology Finance Corp. (NYSE:OTF) reached a new 52-week low during mid-day trading on Friday . The stock traded as low as $10.06 and last traded at $10.0750, with a volume of 1788870 shares traded. The stock had previously closed at $10.29.

Analyst Upgrades and Downgrades

OTF has been the subject of a number of research analyst reports. Keefe, Bruyette & Woods cut their price objective on shares of Blue Owl Technology Finance from $13.00 to $12.00 and set a “market perform” rating for the company in a research report on Tuesday, May 12th. Wells Fargo & Company lowered their price target on Blue Owl Technology Finance from $13.00 to $12.00 and set an “overweight” rating on the stock in a research note on Friday, May 8th. Royal Bank Of Canada cut their price target on 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. Truist Financial lowered their price target on shares of Blue Owl Technology Finance from $16.00 to $15.00 and set a “buy” rating on the stock in a report on Tuesday, May 19th. Finally, Zacks Research upgraded shares of Blue Owl Technology Finance from a “strong sell” rating to a “hold” rating in a research note on Wednesday, June 10th. Three equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Blue Owl Technology Finance presently has a consensus rating of “Moderate Buy” and an average target price of $13.40.

Blue Owl Technology Finance Stock Down 2.1%

The company has a market cap of $4.66 billion and a P/E ratio of 11.19. The firm’s 50 day moving average is $10.74.

Blue Owl Technology Finance (NYSE:OTF) last posted its earnings results on Wednesday, May 6th. The company reported $0.29 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.02). The company had revenue of $222.12 million for 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 business earned $0.41 EPS. On average, sell-side analysts expect that Blue Owl Technology Finance Corp. will post 1.26 earnings per share for the current year.

Blue Owl Technology Finance Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were paid a $0.35 dividend. The ex-dividend date was Tuesday, June 30th. This represents a $1.40 annualized dividend and a dividend yield of 13.9%. This is a boost from Blue Owl Technology Finance’s previous quarterly dividend of $0.05. Blue Owl Technology Finance’s dividend payout ratio is presently 155.56%.

Insider Activity

In other news, Director Melissa Weiler bought 10,000 shares of the stock in a transaction dated Wednesday, May 13th. The shares were acquired at an average price of $10.90 per share, with a total value of $109,000.00. Following the acquisition, the director owned 10,000 shares in the company, valued at $109,000. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Chris Temple bought 7,000 shares of the company’s stock in a transaction that occurred on Friday, May 22nd. The shares were purchased at an average price of $10.71 per share, with a total value of $74,970.00. Following the transaction, the director directly owned 12,000 shares in the company, valued at $128,520. This represents a 140.00% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders bought 18,000 shares of company stock worth $194,710. 0.05% of the stock is owned by insiders.

Institutional Inflows and Outflows

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 in the 1st quarter worth approximately $250,556,000. Orange County Employees Retirement System bought a new position in Blue Owl Technology Finance in the 4th quarter valued at $116,497,000. Capricorn Investment Group LLC acquired a new position in Blue Owl Technology Finance in the fourth quarter worth $78,915,000. Franklin Resources Inc. boosted its stake in Blue Owl Technology Finance by 155,006.8% in the fourth quarter. Franklin Resources Inc. now owns 1,754,258 shares of the company’s stock worth $25,507,000 after purchasing an additional 1,753,127 shares in the last quarter. Finally, Rivernorth Capital Management LLC grew its holdings in shares of Blue Owl Technology Finance by 374.2% during the fourth quarter. Rivernorth Capital Management LLC now owns 1,934,726 shares of the company’s stock worth $28,131,000 after purchasing an additional 1,526,695 shares during 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.