Stock of the Day

Blue Owl Capital (OWL)

$19.28

+$0.26 (+1.4%)

Market Cap: $29.61B

About Blue Owl Capital

Blue Owl Capital Inc. operates as an asset manager in the United States. The company offers permanent capital base solutions that enables it to offer holistic framework of capital solutions to middle market companies, large alternative asset managers, and corporate real estate owners and tenants.

It also provides direct lending products that offer private credit products comprising diversified, technology, first lien, and opportunistic lending to middle-market companies; liquid credit; GP strategic capital products, which offers capital solutions, including GP minority stakes, GP debt financing, and professional sports minority stakes; and real estate products that focuses on acquiring triple net lease real estate by investment grade or creditworthy tenants. It offers its solutions through permanent capital vehicles, as well as long-dated private funds. Blue Owl Capital Inc. is headquartered in New York, New York.

Blue Owl Capital Bull Case

Here are some ways that investors could benefit from investing in Blue Owl Capital Inc.:

• The company recently increased its quarterly dividend to $0.225 per share, reflecting a commitment to returning value to shareholders and indicating strong cash flow management.
• Blue Owl Capital Inc. has a solid return on equity of over 20%, suggesting effective management and profitability in generating returns for shareholders.
• The current stock price is around $18.77, which may present a buying opportunity for investors looking for potential upside, especially with a price target raised to $21.00 by analysts.
• Institutional investors hold a significant portion of the company's stock, indicating confidence in Blue Owl Capital Inc.'s future performance and stability.
• The company operates in the asset management sector, which can provide steady revenue streams and growth opportunities, particularly in a recovering economy.

Blue Owl Capital Bear Case

Investors should be bearish about investing in Blue Owl Capital Inc. for these reasons:

• The company reported earnings per share (EPS) of $0.17, missing analysts' expectations, which may raise concerns about its short-term profitability.
• With a high dividend payout ratio of over 692%, there may be concerns about the sustainability of its dividend payments in the long run.
• Recent price target adjustments by analysts have shown a downward trend, with some targets being significantly lower than previous estimates, indicating potential volatility.
• The company has a relatively high price-to-earnings (P/E) ratio, suggesting that the stock may be overvalued compared to its earnings, which could deter value-focused investors.
• Market fluctuations and economic uncertainties can impact the asset management sector, potentially affecting Blue Owl Capital Inc.'s performance and stock price.

Recent News

• Point and Funds Managed by Blue Owl Capital Close Oversubscribed $248 Million Home Equity Investment Rated Securitization (globenewswire.com)
• Blue Owl's Clarke Says Investors Are Pushing Consolidation (finance.yahoo.com)
• Blue Owl's Clark Says Investors Are Pushing Consolidation (msn.com)
• PSALM Capital Partners with Tropion Sports Partners, Join Blue Owl Home Court for Investment in the NBA (finance.yahoo.com)
• OBDC Stock: An Almost 11%-Yielding Alternative Bank? (incomeinvestors.com)
• Blue Owl Technology Finance Corp. Announces Intention to List on the New York Stock Exchange (prnewswire.com)
• Blue Owl Capital price target lowered to $15.50 from $16.25 at BofA (msn.com)