Oxford Lane Capital (NASDAQ:OXLC) Issues Earnings Results

Key Points

• Oxford Lane Capital reported quarterly EPS of $0.95, while NAV increased to $10.74 per share from $10.56. However, GAAP net investment income declined to $50.2 million, or $0.51 per share, and CLO yields also fell.
• The company completed multiple CLO resets and refinancings, benefiting from tighter liability spreads and extending its portfolio’s weighted-average reinvestment period to November 2029.
• Oxford Lane declared a monthly dividend of $0.20 per share, implying a 27.6% annualized yield, payable September 30 to shareholders of record September 16.

Oxford Lane Capital (NASDAQ:OXLC - Get Free Report) posted its earnings results on Tuesday. The investment management company reported $0.95 EPS for the quarter, Zacks reports.

Here are the key takeaways from Oxford Lane Capital's conference call:

• Net asset value increased to $10.74 per share from $10.56 in the prior quarter, while the company recorded a $76.3 million net increase in assets from operations.
• GAAP net investment income fell to $50.2 million, or $0.51 per share, from $54.5 million, or $0.56 per share; core net investment income also declined. CLO equity effective and cash distribution yields decreased to 11.1% and 16.3%, respectively.
• Oxford Lane completed or participated in numerous resets and refinancings, benefiting from tighter liability spreads and extending the portfolio’s weighted-average reinvestment period to November 2029. Management estimates that more than half of the portfolio has near-term reset or refinancing optionality through 2027.
• The U.S. loan market improved modestly, with loan prices rising and the reported trailing default rate falling to 0.97%, although out-of-court restructurings and other distressed activity remained elevated. Management also noted continued spread compression and said July cash distributions were a low point, with future improvement dependent on loan-market conditions and CLO refinancing activity.

Oxford Lane Capital Stock Performance

Shares of NASDAQ:OXLC traded up $0.24 during midday trading on Tuesday, hitting $8.69. The company's stock had a trading volume of 702,774 shares, compared to its average volume of 1,432,619. Oxford Lane Capital has a fifty-two week low of $8.01 and a fifty-two week high of $19.05. The stock has a market capitalization of $787.18 million, a price-to-earnings ratio of 1.34 and a beta of 0.64. The stock's 50 day simple moving average is $9.11 and its 200 day simple moving average is $10.05.

Oxford Lane Capital Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be issued a dividend of $0.20 per share. This represents a c) dividend on an annualized basis and a yield of 27.6%. The ex-dividend date is Wednesday, September 16th. Oxford Lane Capital's dividend payout ratio is 59.60%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of OXLC. Sunbelt Securities Inc. boosted its holdings in Oxford Lane Capital by 377.2% during the fourth quarter. Sunbelt Securities Inc. now owns 3,827 shares of the investment management company's stock valued at $56,000 after purchasing an additional 3,025 shares in the last quarter. Wells Fargo & Company MN increased its position in shares of Oxford Lane Capital by 889.8% in the 4th quarter. Wells Fargo & Company MN now owns 4,474 shares of the investment management company's stock valued at $65,000 after buying an additional 4,022 shares in the last quarter. PNC Financial Services Group Inc. acquired a new position in Oxford Lane Capital during the fourth quarter valued at approximately $77,000. BNP Paribas Financial Markets bought a new position in shares of Oxford Lane Capital during the 3rd quarter worth approximately $109,000. Finally, JPMorgan Chase & Co. acquired a new position in shares of Oxford Lane Capital in the third quarter valued at $146,000. 6.74% of the stock is owned by institutional investors.

Oxford Lane Capital Company Profile

Oxford Lane Capital Corp is a closed-end, externally managed investment company that seeks to generate high current income and capital appreciation. The company invests primarily in debt and equity securities of private funds managed or advised by Oxford Finance LLC, targeting U.S. middle-market companies. Its portfolio spans senior secured loans, mezzanine debt and private equity interests, providing diversification across credit instruments and industry sectors.

Established in 2009 and based in Greenwich, Connecticut, Oxford Lane Capital commenced operations in 2012.

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