OWL Should I Buy
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Blue Owl Capital Inc (OWL) does not present a strong buy opportunity at the moment for a beginner investor with a long-term strategy. The technical indicators are bearish, and recent news highlights concerns about liquidity and performance in the private credit market. While financial performance has been strong in the latest quarter, the stock faces significant headwinds, including analyst downgrades and negative sentiment. Given the user's impatience and unwillingness to wait for optimal entry points, holding off on investing in OWL is recommended for now.
The technical indicators for OWL are bearish. The MACD is below zero and negatively contracting, the RSI is neutral at 40.816, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below the pivot level of 11.482, with key support at 10.43 and resistance at 12.534.
Hedge funds are significantly increasing their positions in OWL, with a 185.97% increase in buying over the last quarter. Additionally, some analysts see the stock as undervalued and believe the recent selloff is overdone.
The suspension of redemptions in a private credit vehicle has raised concerns about liquidity and risks in the private credit market. Recent downgrades from analysts, including Deutsche Bank, highlight a challenging environment for the company. Negative sentiment is further fueled by misleading headlines and broader concerns in the private credit sector.
In Q4 2025, Blue Owl Capital reported strong financial growth: revenue increased by 24.15% YoY to $748.88M, net income surged by 129.80% YoY to $47.67M, and EPS grew by 75% YoY to $0.07. However, gross margin remained flat.
Analyst sentiment is mixed but leans negative. Deutsche Bank downgraded the stock to Hold with a reduced price target of $10. UBS and Goldman Sachs also lowered price targets while maintaining Neutral ratings. However, firms like BofA and Raymond James maintain Buy or Strong Buy ratings, citing undervaluation and solid investment performance.
