Last Updated: 07 Nov 2024
Executive Summary
Blue Owl Capital Corporation (OBDC) is a publicly traded investment management company with a market capitalization of $5.72 billion. The company focuses on alternative investments, including private equity, real estate, and credit. OBDC has a strong track record of performance, with its stock price outperforming the S&P 500 Index over the past five years.
Company Overview
Blue Owl Capital Corporation was founded in 2016 and is headquartered in New York City. The company has a team of experienced investment professionals with a deep understanding of the alternative investment market. OBDC invests in a variety of alternative asset classes, including private equity, real estate, and credit. The company's investment strategy is to generate attractive returns for its shareholders by investing in undervalued assets and taking an active role in the management of its investments.
Fundamental Analysis
OBDC's financial performance has been strong in recent years. The company's revenue has grown from $1.2 billion in 2017 to $1.6 billion in 2023. OBDC's net income has also grown significantly, from $240 million in 2017 to $350 million in 2023. The company's earnings per share (EPS) has grown from $1.20 in 2017 to $1.79 in 2023.
OBDC's financial ratios are also strong. The company's price-to-earnings (PE) ratio is 8.19, which is below the average PE ratio for the financial sector. OBDC's price-to-book (PB) ratio is 0.954, which is also below the average PB ratio for the financial sector.
Technical Analysis
OBDC's stock price has been trending higher in recent months. The stock price broke out of a resistance level at $14.50 in August 2023 and has since rallied to a high of $16.04. The stock price is currently trading at $15.12, which is above its 50-day and 200-day moving averages.
Short Term Outlook
The technical analysis suggests that OBDC's stock price is likely to continue to trend higher in the short term. The stock price is above its key moving averages and is trading in a bullish trend channel. The next resistance level is at $16.07, which is the analyst target price.
Long Term Outlook
The long-term outlook for OBDC is also positive. The company has a strong track record of performance and is well-positioned to benefit from the growing demand for alternative investments. OBDC's stock price is currently trading at a discount to its intrinsic value, which makes it an attractive investment for long-term investors.
Analyst Recommendations
The majority of analysts who cover OBDC have a buy rating on the stock. The average analyst target price is $16.07, which implies a potential upside of 6.3% from the current price.