Moody’s downgrades Senegal to Caa1 amid rising debt concerns
Investing.com - Clear Street initiated coverage on Oxford Lane Capital (NASDAQ:OXLC) with a Buy rating and a price target of $21.50 on Wednesday, representing significant upside potential from the current price of $16.93. According to InvestingPro data, OXLC has a market capitalization of $1.64 billion and maintains a relatively low beta of 0.77.
The research firm highlighted Oxford Lane’s position as one of the largest and longest-tenured closed-end funds dedicated to CLO equity investing, offering investors a high-yield vehicle backed by active management expertise from Oxford Lane Management. InvestingPro data reveals the fund offers an impressive 28.35% dividend yield and has maintained dividend payments for 15 consecutive years.
Clear Street noted the fund’s focus on CLO equity, which comprises approximately 98% of its portfolio, delivers high estimated portfolio yields of 14.8%, or 21.4% when including return of capital cash flows, though this exposes shareholders to significant volatility inherent in this subordinated asset class.
The firm acknowledged near-term headwinds persist as tight loan spreads pressure CLO equity yields and compress NAVs, but emphasized Oxford Lane’s scale, liquidity, and diversified positioning leave it well-positioned to benefit from a potential rebalancing of the loan market in 2026.
Clear Street also pointed out that management is actively managing capital allocation through a $150 million share repurchase program.
In other recent news, Oxford Lane Capital Corp reported its Q1 2025 financial results, which showed a mixed outcome. The company announced earnings per share (EPS) of $0.24, which fell short of the expected $0.27, marking an 11.11% negative surprise. However, Oxford Lane Capital exceeded revenue expectations by reporting $124 million, surpassing the forecast of $100.7 million. Additionally, Oxford Lane Capital implemented a 1-for-5 reverse stock split, which became effective on September 5, 2025. This adjustment means every five shares of common stock have been consolidated into one, with trading continuing under the same symbol but a new CUSIP number. These developments are part of the company’s ongoing strategies to manage its stock structure and financial performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.