Blue Owl Capital (NYSE:OWL), a specialty finance firm that’s struggled as private-credit funds have come under scrutiny, closed Tuesday at $9.15, up 4.45%. There was no clear driver for today’s gains, though wider sector gains could reflect a shift in sentiment.
Trading volume reached 41.8 million shares, coming in about 57% above its three-month average of 26.6 million shares. Blue Owl Capital IPO’d in 2020 and has fallen 15% since going public.
The S&P 500 (SNPINDEX:^GSPC) added 0.25% to finish Tuesday at 6,716, while the Nasdaq Composite (NASDAQINDEX:^IXIC) climbed 0.47% to close at 22,480. Within alternative asset management, industry peers Ares Management (NYSE:ARES) closed up 6.57% at $105.67 Blackstone (NYSE:BX) gained 4.56% to finish at $112.00, reflecting broad strength across the group.
Blue Owl Capital pared some of its gains today, but the stock has still dropped over 50% in the past year. A combination of intensifying private credit fears and the firm’s focus on software stocks has weighed heavily on its price.
Today’s shift comes alongside peer gains, suggesting investors may think the sector is oversold. Other drivers could include the firm’s push into other sectors — Blue Owl Capital recently lent $550 million to life-sciences firm, Scholar Rock (NASDAQ:SRRK). Plus, earlier this month, Oppenheimer reiterated its “outperform” rating on the stock.
Even so, investors remain cautious. As private credit comes under stress and fund managers, including Blue Owl, restrict redemptions on certain funds, this storm may not be over.
Before you buy stock in Blue Owl Capital, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Blue Owl Capital wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $513,407!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,123,237!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 188% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
