Oxford Square Capital (NASDAQ:OXSQ) Announces Quarterly Earnings Results

Key Points

• Oxford Square Capital reported quarterly EPS of $0.05, beating the $0.04 consensus estimate, while net investment income increased to $5.1 million. However, NAV fell to $1.29 per share from $1.32 and remained below the $0.105 quarterly distribution.
• The company invested $19.9 million in secondary-market CLO equity, with yields in the low-20% range, while investment losses narrowed sharply to about $1.1 million from $29.7 million in the prior quarter.
• Shares rose 7.6% to $1.55, despite the stock retaining an overall “Sell” rating; meanwhile, CEO Jonathan Cohen and COO Saul Rosenthal each purchased roughly 144,700 shares at $1.15 per share.

Oxford Square Capital (NASDAQ:OXSQ - Get Free Report) issued its earnings results on Friday. The company reported $0.05 EPS for the quarter, beating the consensus estimate of $0.04 by $0.01, Zacks reports. Oxford Square Capital had a negative net margin of 92.37% and a positive return on equity of 14.11%.

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

• Net investment income rose to $5.1 million, or $0.05 per share, but remained below the $0.105 quarterly distribution; NAV declined to $1.29 per share from $1.32.
• The company invested $19.9 million entirely in secondary-market CLO equity, with cash-on-cash and forward effective yields in the low-20% range.
• Investment losses narrowed substantially to approximately $1.1 million from $29.7 million in the prior quarter, while a restructured non-accrual position now includes an accruing first-lien term loan and common equity.
• The broader leveraged-loan market improved, with loan prices increasing, the trailing default rate falling to 0.97%, and the distress ratio declining to 6.87% during the quarter.

Oxford Square Capital Stock Up 7.6%

Shares of NASDAQ OXSQ traded up $0.11 during midday trading on Friday, reaching $1.55. 3,455,869 shares of the company were exchanged, compared to its average volume of 1,698,771. The stock's 50-day moving average price is $1.38 and its 200-day moving average price is $1.66. The stock has a market cap of $144.97 million, a P/E ratio of -3.60 and a beta of 0.38. Oxford Square Capital has a one year low of $1.05 and a one year high of $2.42.

Wall Street Analyst Weigh In

Several research firms recently issued reports on OXSQ. Wall Street Zen upgraded shares of Oxford Square Capital from a "strong sell" rating to a "sell" rating in a research report on Sunday, May 17th. Weiss Ratings cut Oxford Square Capital from a "sell (d+)" rating to a "sell (d)" rating in a research note on Monday, May 18th. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat, the company presently has an average rating of "Sell".

Insider Buying and Selling at Oxford Square Capital

In other news, COO Saul B. Rosenthal acquired 144,703 shares of the business's stock in a transaction that occurred on Wednesday, May 20th. The shares were bought at an average price of $1.15 per share, with a total value of $166,408.45. Following the acquisition, the chief operating officer directly owned 2,201,479 shares in the company, valued at $2,531,700.85. The trade was a 7.04% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Jonathan H. Cohen acquired 144,704 shares of Oxford Square Capital stock in a transaction that occurred on Wednesday, May 20th. The shares were purchased at an average price of $1.15 per share, for a total transaction of $166,409.60. Following the transaction, the chief executive officer directly owned 2,417,193 shares in the company, valued at $2,779,771.95. The trade was a 6.37% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 6.50% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in OXSQ. Dynamic Technology Lab Private Ltd acquired a new stake in Oxford Square Capital in the first quarter valued at $28,000. StoneX Group Inc. acquired a new position in Oxford Square Capital during the 4th quarter worth about $29,000. Legal & General Group Plc lifted its holdings in Oxford Square Capital by 4.5% during the 2nd quarter. Legal & General Group Plc now owns 468,312 shares of the company's stock worth $1,042,000 after buying an additional 20,205 shares during the period. Susquehanna International Group LLP bought a new stake in shares of Oxford Square Capital in the 3rd quarter valued at about $63,000. Finally, CANADA LIFE ASSURANCE Co increased its stake in shares of Oxford Square Capital by 72.3% in the third quarter. CANADA LIFE ASSURANCE Co now owns 97,936 shares of the company's stock valued at $155,000 after buying an additional 41,105 shares during the period. Institutional investors and hedge funds own 6.44% of the company's stock.

About Oxford Square Capital

Oxford Square Capital Corp. NASDAQ: OXSQ is a publicly traded business development company that provides flexible financing solutions to U.S. middle-market companies. Chartered as a closed-end management investment company, Oxford Square Capital seeks to generate current income and capital appreciation by investing primarily in secured loans, mezzanine debt and equity co-investments. The firm targets businesses with established cash flows, offering tailored capital structures designed to support growth, recapitalizations and acquisitions.

The company's investment strategy focuses on senior secured first-lien and second-lien loans, subordinated debt and preferred and common equity stakes.

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