Stock of the Day

November 16, 2022

Blue Owl Capital (OWL)

$22.08
-$1.02 (-4.4%)
Market Cap: $34.50B

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.:

  • Blue Owl Capital Inc. reported earnings per share (EPS) of $0.21 for the latest quarter, meeting analysts' expectations, which indicates strong financial performance and stability.
  • The company has a return on equity (ROE) of 20.82%, suggesting effective management and a strong ability to generate profits from shareholders' equity.
  • Blue Owl Capital Inc. recently announced a quarterly dividend of $0.18, translating to an annualized yield of 3.11%, providing investors with a steady income stream.
  • Analysts have a consensus rating of "Moderate Buy" for the stock, with a target price averaging around $26.27, indicating potential for price appreciation.
  • The company has shown consistent revenue growth, with reported revenue of $600.88 million, exceeding analysts' expectations, which reflects strong demand for its services.

Blue Owl Capital Bear Case

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

  • The dividend payout ratio is extremely high at 423.55%, which may raise concerns about the sustainability of future dividends if earnings do not grow.
  • Despite positive earnings, the net margin of 4.77% suggests that the company may face challenges in maintaining profitability amidst competitive pressures.
  • Some analysts have issued hold ratings, indicating that there may be uncertainty about the stock's short-term performance.
  • The stock price has seen fluctuations, and while the current price is around $26.27, market volatility could impact investor returns.
  • Blue Owl Capital Inc. operates in a competitive asset management industry, which may pose risks to its market share and growth potential.

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