Blue Owl Technology Finance (OTF) shares rallied 6.5% in the last trading session to close at $13.03. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12.8% loss over the past four weeks.
Blue Owl Technology Finance stock rallied yesterday on a high-volume rebound after a steep, sector-wide selloff in software/tech-exposed private credit and BDCs. As broader tech stocks recovered, investors unwound AI-related disruption fears that had pressured software-heavy lenders like OTF.
This specialty finance company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of -22%. Revenues are expected to be $326.27 million, up 95.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Blue Owl Tech, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on OTF going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Blue Owl Tech is a member of the Zacks Financial - SBIC & Commercial Industry industry. One other stock in the same industry, Trinity Capital (TRIN), finished the last trading session 0.2% lower at $16.16. TRIN has returned 2.4% over the past month.
For Trinity Capital, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.53. This represents a change of -5.4% from what the company reported a year ago. Trinity Capital currently has a Zacks Rank of #3 (Hold).
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Blue Owl Technology Finance Corp. (OTF): Free Stock Analysis Report Trinity Capital Inc. (TRIN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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