American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

OXLC stock yields 22% and beats S&P 500: is it a good buy?

by admin April 2, 2025
April 2, 2025
OXLC stock yields 22% and beats S&P 500: is it a good buy?

The Oxford Lane Capital stock price has moved into a bull market after surging by over 20% from its lowest level this year. OXLC has soared to $4.8 and is hovering at its highest level since March 11. So, is this 23% yielding company a good investment to buy and hold today?

What is Oxford Lane Capita, and why does it yield so much?

Oxford Lane Capital is a leading American company operating in the fast-growing credit industry. It is an investment company that invests in equity and junior debt tranches of Collateralized Loan Obligation (CLO) vehicles. These investments are collateralized by portfolios of senior loans with no exposure to the real estate industry.

Oxford also invests in warehousing facilities, which are financial entities that aggregate senior loans that may be used to form part of a CLO vehicle. The company now holds equity investments in almost 200 CLO structures, including of companies like Elmwood, Regatta, Ares, Wind River, and Ceder Funding.

Oxford Lane Capital stock price has jumped because of its strong financial performance as demand for credit jumped. It also soared after the company announced a new share repurchase program.

The company will repurchase up to $150 million worth of stock, a substantial amount since the company has a market cap of $1.5 billion. A share repurchase program help to boost a stock’s performance by reducing the number of outstanding shares, which then boosts its earnings per share.

The other potential catalyst for the OHLC stock price is the fact that interest rates will likely remain higher for a while. Goldman Sachs analysts expect that the Fed will deliver three rate cuts this year, bringing the terminal rate at 3.75%. Still, these are higher-than-average interest rates.

Read more: Oxford Lane Capital (OXLC) has a fat 20% yield: is it a buy?

OXLC and other large players in the industry do well when rates are rising. That’s because interest rates on CLOs tend to do well as well, which can lead to higher cash flows since CLOs have a floating rate. 

Analysts believe that Oxford Lane Capital’s business will do relatively well this year. The average estimate is that its revenue will be $372 million this year followed by $615 million next year. This explains why the average OXLC stock price forecast is $5.38, higher than the current $4.8.

Investors love OXLC for its strong historical performance and its high dividend yield. Its stock yields 22.4%, meaning that a $10,000 investment will bring in about $2,000 in interest each year. This dividend helps to offset the stock performance. For example, its stock dropped by 5% in the last 12 months, while the S&P 500 rose by 7.4%. However, its total return, with dividends included, was 16% compared to S&P 500’s 7.4%. OXLC has often beaten the S&P 500 because of this yield.

OXLC stock price analysis

OXLC chart by TradingView

The weekly chart shows that the OXLC share price has been in a strong uptrend in the past few months. It has formed an ascending channel that connects the lowest and highest swings since March 2023. It recently formed a giant hammer candlestick, a popular reversal sign. 

The stock has remained above the 50-day and 100-day moving averages, and is attempting to cross the key resistance at $4.80, the highest point in January 2022. Therefore, the path of the least resistance for the Oxford Lane Capital stock is bullish, with the next point to watch being at $5.0, its highest point in November last year.

The post OXLC stock yields 22% and beats S&P 500: is it a good buy? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
European pharma stocks fall on Wednesday ahead of ‘Liberation Day’ announcements: what’s at stake?
next post
Groupon stock price analysis: to surge by between 45% and 85%

Related Posts

Trump-Musk fallout risks SpaceX deals, Tesla’s standing, and...

June 6, 2025

Dow futures soar 100 points today: 5 things...

August 11, 2025

JPMorgan initiate coverage on OpenAI, to start coverage...

July 19, 2025

Alibaba stock price analysis: gears for a surge...

May 12, 2025

Wall Street legend says US stocks are in...

March 3, 2025

UAW loses Alabama union vote seen as bellwether...

May 19, 2024

Why Coca-Cola says DEI is essential for business...

February 22, 2025

Johnson & Johnson to pay $6.5 billion to...

May 8, 2024

Hong Kong stocks decline as investors react to...

September 16, 2024

This US bank stock could gain from Trump’s...

March 19, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Oil jumps 2% as OPEC agree to smaller output hike for October, sanction threats looms

      September 8, 2025
    • Weekly recap: tech titans woo Trump, Xi’s political theatre, Starmer’s reshuffle

      September 7, 2025
    • Trump reaffirms backing for Robert Kennedy amid vaccine policy turmoil

      September 7, 2025
    • South Korean president promises aid to citizens held in US immigration raid

      September 7, 2025
    • Tim Cook’s repeated ‘thank yous’ at Trump’s White House dinner go viral

      September 7, 2025

    Categories

    • Business (3,944)
    • Investing (2,859)
    • Latest News (2,058)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved