In a remarkable display of market confidence, OWL stock has reached an all-time high, touching $24.19, a price level that underscores the company's significant growth trajectory over the past year. Investors have rallied behind OWL, propelling the stock to unprecedented heights and reflecting a bullish outlook on the company's future. This surge represents a staggering 76.73% increase in the 1-year change data, indicating a robust performance that has far outpaced market expectations. The milestone is a testament to OWL's strategic initiatives and operational excellence, which have evidently resonated well with shareholders and market analysts alike.
In other recent news, Blue Owl Capital has been making headlines with its third-quarter 2024 earnings report and subsequent developments. The firm announced substantial increases in management fees and earnings, reporting fee-related earnings (FRE) of $0.22 per share and distributable earnings (DE) of $0.20 per share. A dividend of $0.18 per share was also declared, although this was lower than expected due to external economic factors.
Piper Sandler, an analyst firm, has shown confidence in Blue Owl Capital's growth, raising its price target to $25.00 from the previous $23.00, while maintaining an Overweight rating. The firm's earnings estimates for Blue Owl Capital remain unchanged at $0.79 and $0.93 for the years 2024 and 2025, respectively.
Blue Owl Capital's recent acquisition of IPI has strengthened its position in the digital infrastructure sector, contributing to robust fundraising and credit deployment activities. The company raised $7.9 billion in equity capital in Q3 2024, with $4.2 billion coming from private wealth, and revealed plans for product expansion focusing on digital infrastructure and alternative credit.
Looking ahead, Blue Owl Capital aims for mid-20% growth in FRE for 2024 and 2025, and anticipates a dividend of around $0.90 for 2025, marking a nearly 30% annual growth rate since going public. These are part of the recent developments that investors should keep an eye on.
InvestingPro Insights
OWL's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's stock is currently trading near its 52-week high, with a remarkable 79.62% total return over the past year. This impressive performance is further supported by a strong 36.2% return over the last three months, indicating sustained momentum.
InvestingPro data reveals that OWL's revenue growth remains robust, with a 32.15% increase in the last twelve months as of Q3 2024, and an even more impressive 39.85% quarterly growth. This revenue expansion is complemented by a healthy gross profit margin of 59.68%, suggesting effective cost management.
InvestingPro Tips highlight that OWL has raised its dividend for 4 consecutive years, with a current dividend yield of 3.07%. This consistent dividend growth, coupled with the expectation of increased net income this year, may be contributing factors to investor confidence.
It's worth noting that OWL is trading at a high earnings multiple, with a P/E ratio of 113.43. While this could indicate high growth expectations, it also suggests that the stock may be priced at a premium.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide further insights into OWL's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.