Oxford Lane Capital authorizes $150M stock buyback

Published 20/03/2025, 21:10
Oxford Lane Capital authorizes $150M stock buyback

GREENWICH, Conn. - Oxford Lane Capital Corp. (NASDAQ:OXLC), a closed-end management investment company currently trading at $4.36 with a market capitalization of $1.58 billion, has announced the initiation of a share repurchase program, underscoring its intention to buy back up to $150 million of its common stock. This program is set to run through March 20, 2026, with the company retaining the flexibility to determine the specifics of the buyback, including timing and volume, based on market conditions and other pertinent factors. According to InvestingPro, the stock’s RSI suggests it is currently in oversold territory.

This strategic move comes as Oxford Lane Capital reported having over $300 million in cash as of today, positioning the company to make opportunistic investments or repurchase shares as it sees fit. The company maintains a healthy current ratio of 2.31, with liquid assets exceeding short-term obligations. Notably, OXLC offers a substantial 25.12% dividend yield and has maintained dividend payments for 15 consecutive years. The repurchase program does not obligate the firm to acquire any particular number of shares, and there is no assurance provided to shareholders that any shares will be repurchased.

Oxford Lane Capital’s investment focus primarily lies in the debt and equity tranches of collateralized loan obligation (CLO) vehicles, including warehouse facilities that aggregate loans potentially forming the basis of a CLO vehicle. The company has demonstrated strong financial performance with a P/E ratio of 7.95 and revenue growth of 27.86% in the last twelve months. Get deeper insights into OXLC’s financial health and growth prospects with a comprehensive Pro Research Report, available exclusively on InvestingPro.

The announcement of the share repurchase program is a decision that the company can adjust, suspend or discontinue at any time. The company’s board has emphasized the program’s flexibility, indicating that the repurchase initiative will be influenced by a range of variables such as economic and market conditions, legal and regulatory requirements, and the company’s stock price, which currently sits 24.6% below its 52-week high of $5.78.

The information in this article is based on a press release statement from Oxford Lane Capital Corp.

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