Oxford Square Capital (NASDAQ:OXSQ) Issues Earnings Results

Oxford Square Capital (NASDAQ:OXSQ) released its quarterly earnings results on Friday. The company reported $0.05 earnings per share (EPS) for the quarter, topping 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 Trading Up 7.6%

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

Insider Activity at Oxford Square Capital

In other Oxford Square Capital news, CEO Jonathan H. Cohen purchased 144,704 shares of the company’s stock in a transaction on Wednesday, May 20th. The shares were purchased at an average cost of $1.15 per share, with a total value of $166,409.60. Following the completion of the purchase, the chief executive officer owned 2,417,193 shares in the company, valued at $2,779,771.95. This represents a 6.37% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Saul B. Rosenthal purchased 144,703 shares of the business’s stock in a transaction on Wednesday, May 20th. The shares were acquired at an average price of $1.15 per share, for a total transaction of $166,408.45. Following the completion of the acquisition, the chief operating officer directly owned 2,201,479 shares in the company, valued at approximately $2,531,700.85. This represents a 7.04% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 6.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of OXSQ. Squarepoint Ops LLC boosted its stake in Oxford Square Capital by 167.2% during the third quarter. Squarepoint Ops LLC now owns 512,153 shares of the company’s stock worth $814,000 after acquiring an additional 320,467 shares in the last quarter. Millennium Management LLC increased its stake in Oxford Square Capital by 65.4% in the third quarter. Millennium Management LLC now owns 763,282 shares of the company’s stock valued at $1,214,000 after purchasing an additional 301,741 shares in the last quarter. Marshall Wace LLP acquired a new position in shares of Oxford Square Capital during the second quarter valued at about $332,000. Virtu Financial LLC acquired a new position in shares of Oxford Square Capital during the third quarter valued at about $119,000. Finally, Jane Street Group LLC boosted its position in shares of Oxford Square Capital by 68.0% during the 2nd quarter. Jane Street Group LLC now owns 130,609 shares of the company’s stock worth $291,000 after purchasing an additional 52,857 shares in the last quarter. Institutional investors and hedge funds own 6.44% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on OXSQ shares. Weiss Ratings lowered shares of Oxford Square Capital from a “sell (d+)” rating to a “sell (d)” rating in a research note on Monday, May 18th. Wall Street Zen upgraded shares of Oxford Square Capital from a “strong sell” rating to a “sell” rating in a report on Sunday, May 17th. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, Oxford Square Capital currently has an average rating of “Sell”.

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.