Feb. 23, 2026 at 4:03 PM ET5 min read

Blue Owl Capital Stock Plummets Amid Multiple Lawsuits and Asset Sales

Tim BohenAvatar
Written by Tim Bohen
Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

Blue Owl Capital Inc.’s stocks have been trading down by -3.42% following cautious investor sentiment amid market uncertainties.

Key Takeaways

  • Several firms are launching lawsuits against Blue Owl Capital, citing misleading investor information and undisclosed liquidity issues.
  • A stock price decline follows Blue Owl’s sale of $1.4B in loan assets and restrictions on quarterly redemptions.
  • Analysts have lowered Blue Owl’s stock price target amid high exposure to direct lending risks.

Candlestick Chart

Live Update At 16:02:09 EST: On Monday, February 23, 2026 Blue Owl Capital Inc. stock [NYSE: OWL] is trending down by -3.42%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Recent months have been challenging for Blue Owl Capital, affected by several negative developments. From the multiple lawsuits they face to their controversial asset sales, these events have taken a toll on the company’s stock value. This reality is reflected in the latest figures from Blue Owl’s trading behavior, showing a downward trajectory from $12.24 on Feb 18, 2026, to $10.44 on Feb 23, 2026.

More Breaking News

Behind the scenes, the numbers paint a broader picture. These figures coincide with a time when Blue Owl had to navigate complex liquidity issues and legal battles, all culminating in a significant impact on their public image and financial standing. Goldman Sachs had reduced their price target for Blue Owl from $16.25 to $14, indicating that the market was growing wary of Blue Owl’s near-term prospects.

Legal Troubles and Investor Concerns

As the Rosen Law Firm and Faruqi & Faruqi, LLP embark on class-action lawsuits against Blue Owl Capital, the company must also deal with allegations of misleading investors. These lawsuits argue that Blue Owl failed to disclose liquidity issues and asset base pressures that critically undermined investor confidence. Legal actions, combined with a decrease in stock value by nearly 8%, illustrate the seriousness of the claims.

The lawsuits implicate Blue Owl in providing false and misleading statements regarding their asset base and liquidity challenges. For investors, these issues could mean substantial financial losses. The repercussions are already evident in the market, as investor sentiment struggles to rise above skepticism.

Restriction of Redemptions and Asset Sales

In another striking strategic move, Blue Owl Capital announced a major asset sale of $1.4 billion from three private debt funds. This, along with the decision to restrict quarterly redemptions for Blue Owl Capital Corp II, sent shockwaves through the investor community. Concerns mounted over Blue Owl’s liquidity and its readiness to meet obligations.

As these conditions unfold, several financial analysts have adjusted their outlook on Blue Owl. UBS, for example, slashed their price target for the company from $16.50 to $12, emphasizing predicted underperformance. Such evaluations highlight the further instability facing Blue Owl amid a shifting financial landscape.

Conclusion

Blue Owl Capital’s current predicaments are sparking heightened attention across the finance sector. Ongoing lawsuits, asset base pressures, and risky redemptions are creating a fertile ground for stock volatility. As stakeholders closely monitor developments, confidence may be shaken further unless concrete resolutions are realized. For traders, navigating these uncertain waters requires a keen eye on market signals. As Tim Bohen, lead trainer with StocksToTrade says, “If you’re still guessing at the end of your analysis, it’s probably not a trade worth taking.” Traders will be looking for assurances as Blue Owl navigates these challenging waters. The company’s near future and potential recovery will hinge on promptly addressing these legal and financial concerns, while managing market perceptions in a bid to restore trust and stabilize their share value.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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