Oxford Lane Capital (NASDAQ:OXLC) Issues Quarterly Earnings Results

Oxford Lane Capital (NASDAQ:OXLC) posted its earnings results on Tuesday. The investment management company reported $0.95 earnings per share for the quarter, missing analysts’ consensus estimates of $2.26 by ($1.31), Zacks reports. The firm had revenue of $166.25 million during the quarter, compared to the consensus estimate of $244.27 million.

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

NASDAQ:OXLC opened at $8.88 on Thursday. Oxford Lane Capital has a 52 week low of $8.01 and a 52 week high of $19.05. The firm’s 50-day simple moving average is $9.07 and its 200 day simple moving average is $9.97. The firm has a market cap of $804.40 million, a price-to-earnings ratio of 1.28 and a beta of 0.64.

Oxford Lane Capital Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Thursday, December 31st. Investors of record on Thursday, December 17th will be given a dividend of $0.20 per share. This represents a c) dividend on an annualized basis and a yield of 27.0%. The ex-dividend date of this dividend is Thursday, December 17th. Oxford Lane Capital’s dividend payout ratio (DPR) is currently 55.48%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Jump Financial LLC acquired a new stake in shares of Oxford Lane Capital in the fourth quarter valued at approximately $472,000. VARCOV Co. acquired a new stake in Oxford Lane Capital during the fourth quarter worth approximately $423,000. Vident Advisory LLC acquired a new stake in Oxford Lane Capital during the fourth quarter worth approximately $245,000. Ausdal Financial Partners Inc. bought a new position in Oxford Lane Capital during the 4th quarter worth $242,000. Finally, Tower Research Capital LLC TRC bought a new position in Oxford Lane Capital during the 2nd quarter worth $187,000. Institutional investors and hedge funds own 6.74% of the company’s stock.

About Oxford Lane Capital

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.