Blue Owl Capital Inc. (OWL): Not A Time To Panic Nor Freeze

Capital Research & Management Co has recently announced that it has increased stake in Blue Owl Capital Inc. (NYSE:OWL) by 4.44%. After grabbing 56.75 million shares, the institutional investor is now in possession of 2.41 million shares of the Financial Company. The new investment brought the stake of investor firm to 12.73% having worth around $699.15 million. Moreover, Capital Research & Management Co increased its share by 50337.0 to have a control over 35.87 million shares.

Blue Owl Capital Inc. (OWL) concluded trading on 09/13/23 at a closing price of $12.09, with 3.42 million shares of worth about $41.4 million changed hands on the day. Half year performance of the stock remained positive as price took a surge of 17.61% during that period and on Wednesday the price saw a loss of about -0.98%. Currently the company’s common shares owned by public are about 459.40M shares, out of which, 449.38M shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 12 analysts are covering the OWL stock and their offered price forecasts bring an average price target of $15.00. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $18.00 and could fall to a lowest price of $13.00. The stock’s current price level is 19.93% above of average price target set by the analysts, while a rise to estimated low would result in gain of 7.0% for the stock. However, touching the estimated high of $18.00 would mean a gain of 32.83% for the stock.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 6 times over the past 12 months. They bought 457,153 shares in 6 of the transactions. In 0 selling transactions, insiders dumped 0 shares.

American Funds Fundamental Invest, American Funds Growth Fund of Ame, and American Balanced Fund are the top 3 mutual funds which are holding stakes in Blue Owl Capital Inc. American Funds Fundamental Invest is currently holding 22.03 million shares of worth totaling $271.46 million. The company recently came buying 0.0 shares which brought its stake up to 4.94% of the company’s outstanding shares. American Funds Growth Fund of Ame bought 52000.0 shares, after which its hold over company’s outstanding shares expand to 4.94%, leaving 22.02 million shares with the mutual fund that have a worth of about $271.28 million. American Balanced Fund, after buying 21.39 million shares, have now control over 4.80% of the stake in the company. It holds 0.0 shares of worth $263.47 million.

Blue Owl Capital Inc. (NYSE: OWL) started trading at $12.22, above $0.01 from concluding price of the previous day. However, the stock later moved at a day high price of 12.27, or with a loss of -0.98%. Stock saw a price change of 2.03% in past 5 days and over the past one month there was a price change of 2.98%. Year-to-date (YTD), OWL shares are showing a performance of 14.06% which increased to 3.78% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $8.06 but also hit the highest price of $14.04 during that period. The average intraday trading volume for Blue Owl Capital Inc. shares is 2.97 million. The stock is currently trading 5.03% above its 20-day simple moving average (SMA20), while that difference is up 2.93% for SMA50 and it goes to 5.93% higher than SMA200.

Capital Research & Management Co acquired 56.75 million shares of Blue Owl Capital Inc. having value of about $699.15 million. Data submitted at the U.S SEC by Capital Research & Management Co revealed that the firm now holds 2.41 million shares in the company valued at close to $29186880.06, or have control over 4.44% stake in the company. Blue Owl Capital Inc. (NYSE: OWL) currently have 459.40M outstanding shares and institutions hold larger chunk of about 93.80% of that. Holding of mutual funds in the company is about 38.84% while other institutional holders and individual stake holders have control over 51.47% and 11.16% of the stake respectively.

The stock has a current market capitalization of $16.73B and its 3Y-monthly beta is at 1.30. PE ratio of stock for trailing 12 months is 223.89, while it has posted earnings per share of $0.05 in the same period. Its PEG reads 10.55 while making debt-to-equity ratio of 1.12. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for OWL, volatility over the week remained 2.20% while standing at 2.63% over the month.

Analysts are in expectations that Blue Owl Capital Inc. (OWL) stock would likely to be making an EPS of $0.16 in the current quarter, while forecast for next quarter EPS is $0.18 and it is $0.79 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.16 which is $0.17 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.14 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 98.00% while it is estimated to increase by 21.08% in next year.

Analysts at 12 brokerage firms have issued recommendations for the Blue Owl Capital Inc. (OWL)’s stock and average of those rates the stock at a “Strong Buy” and assign it a score of 1.90. Out of those 12 Wall Street analysts, 10 recommended a “Buy” rating, while 2 were in favor recommending the stock as a “Hold” and 0 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Citigroup on May 19, 2023 offering a Buy rating for the stock and assigned a target price of $14 to it.