Advisor personnel at XAI Octagon Floating Rate & Alternative Income Trust (NYSE:XFLT), John Yogi Spence, has recently increased his stake in the company through a series of share purchases. The transactions, which took place on May 9 and May 10, 2024, amounted to a total investment of over $48,961 in company shares, all acquired at a price of $7.13 each.
The detailed filings show that on May 9, Spence bought 3,417 shares, and followed up with an additional 3,450 shares the next day. These purchases expanded his indirect ownership through XMS Holdings LLC, contributing to a total of 27,400.74 shares held after the transactions. It's worth noting that the reported figures include shares acquired under the XFLT dividend reinvestment plan.
Investors often monitor insider transactions such as these, as they can provide insights into how the company's leadership perceives the firm's value and prospects. While the reasons behind Spence's purchase are not disclosed in the filing, such moves can be interpreted as a sign of confidence in the trust's performance and future.
XAI Octagon Floating Rate & Alternative Income Trust is known for its focus on floating rate debt and alternative income sources, aiming to provide investors with current income and preservation of capital. The trust's strategy and performance are closely watched by investors seeking opportunities in the income-generating asset class.
For those interested in the specifics of the advisor's holdings, footnotes in the filing also revealed additional shares held directly and by Spence's spouse, as well as shares acquired through dividend reinvestment plans. These holdings reflect a broader engagement with the trust's investment strategies, both personally and professionally.
Investors and analysts alike will be keeping a close eye on XAI Octagon's performance and any further insider transactions, as they can offer valuable context for the trust's trajectory in the dynamic financial markets.
InvestingPro Insights
As John Yogi Spence increases his stake in XAI Octagon Floating Rate & Alternative Income Trust (NYSE:XFLT), it’s pertinent to consider some key financial metrics and expert tips from InvestingPro. The trust's current market capitalization stands at $416.86 million, reflecting its size and scale within the investment community. Notably, XFLT has been maintaining an impressive dividend yield, currently at 14.29%, which was last distributed to shareholders on April 12, 2024. This significant dividend payout is one of the InvestingPro Tips that highlights XFLT’s commitment to returning value to its investors.
Moreover, the trust's stock showcases low price volatility, another InvestingPro Tip that suggests stability in its share price movements. This could be appealing to conservative investors looking for steady returns without the stress of high market fluctuations. On the flip side, XFLT suffers from weak gross profit margins and a valuation that implies a poor free cash flow yield, which are factors investors might weigh against the high dividend yield and low volatility.
Looking at performance, the price of XFLT shares has seen a varied trajectory over different time frames. The 1-week and 1-month price total returns as of May 2024 are 0.85% and 1.78%, respectively. However, the 3-month return has seen a slight dip of -1.5%, while the 6-month and year-to-date (YTD) returns paint a more positive picture with 7.1% and 4.84% increases. Over the past year, the shares have enjoyed a substantial 24.18% total return, indicating a strong performance for investors who have held the stock over that period.
The trust's share price is currently at 92.01% of its 52-week high, with the previous closing price at $7.14, closely aligning with the price at which John Yogi Spence made his recent purchases. The average daily volume over the past three months has been 0.39 million, suggesting a decent level of liquidity for the stock. Additionally, investors can look forward to the next earnings date on May 29, 2024, for further insights into the trust's financial health and performance.
InvestingPro also provides a fair value estimate from analysts, which currently stands at $7.75, offering a potential upside from the recent closing price. For those looking to delve deeper into XFLT's prospects and gain more InvestingPro Tips, they can explore further at https://www.investing.com/pro/XFLT. There are 4 additional InvestingPro Tips available that could provide a more comprehensive understanding of the trust's investment potential. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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