Eagle Point Credit Co. (ECC) Given Buy Rating at National Securities
National Securities reissued their buy rating on shares of Eagle Point Credit Co. (NYSE:ECC) in a research report released on Monday. The firm currently has a $24.00 price objective on the investment management company’s stock.
“The Preferred Offering: Eagle Point Credit Company (ECC) issued 1.2 million shares of its Series B preferred stock with a 7.75% coupon with 180,000 shares of overallotment, which we anticipate will be taken up in full. This would equate to gross proceeds of $34.5 million and net proceeds of $33.0 million, by our estimates. After a net common stock offering of $20.7 million and a $25.0 million debt offering in 2Q16, we think that this offering in 4Q16 bodes well for the pipeline of opportunities. Seeing as the volatility in the first half of the year permitted ECC to make highly accretive secondary market purchases with effective yields north of 35%, we expect that the 4Q16 preferred raise will likely be used by ECC to structure its own transactions and earn fee rebates – the bread and butter of its business model. ECC’s NAV/share estimate as of 8/31/16 was $16.72, up 15.6% from $14.46 as of 6/30/16. The strong rebound in loan prices and CLO equity will likely drive a $34.3 million of unrealized appreciation during the quarter. We expect that the company will increase its total portfolio at par to $609.9 million in 4Q16 and $712.1 million in 4Q17 from $441.4 million as of 6/30/16. We model debt + preferred to total assets to finish 2016 at 31.0% and 2017 at 27.4%, from 27.7% in 2Q16. We are adjusting our 2016 NII/share from $2.39 to $2.38 and our 2017 NII/share estimate from $2.61 to $2.64. Our $24 price target implies an estimated 2017 Price/Net Investment Income (P/ NII) of 9.1x, dividend yield of 10.0%, and Price/Net Asset Value (P/NAV) of 1.40x. ,” National Securities’ analyst commented.
A number of other research firms have also weighed in on ECC. Compass Point boosted their target price on shares of Eagle Point Credit from $15.00 to $17.00 and gave the stock a neutral rating in a report on Thursday, August 25th. Deutsche Bank AG boosted their target price on shares of Eagle Point Credit from $18.50 to $19.00 and gave the stock a buy rating in a report on Thursday, August 25th. Finally, Zacks Investment Research downgraded shares of Eagle Point Credit from a hold rating to a sell rating in a research report on Monday, August 29th. One analyst has rated the stock with a sell rating, two have issued a hold rating and three have assigned a buy rating to the stock. The stock presently has a consensus rating of Hold and an average price target of C$19.25.
Shares of Eagle Point Credit (NYSE:ECC) traded up 0.24% during trading on Monday, reaching $17.01. 531 shares of the company traded hands. Eagle Point Credit has a 12-month low of $13.30 and a 12-month high of $19.22. The company has a 50 day moving average price of $17.40 and a 200 day moving average price of $17.10.
Eagle Point Credit (NYSE:ECC) last posted its earnings results on Wednesday, August 24th. The investment management company reported $0.57 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.59 by $0.02. On average, equities research analysts expect that Eagle Point Credit will post $2.33 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Monday, October 31st. Shareholders of record on Friday, September 30th will be issued a dividend of $0.60 per share. The ex-dividend date is Wednesday, September 28th. This represents a $2.40 annualized dividend and a yield of 14.14%. Eagle Point Credit’s payout ratio is -120.60%.
In other Eagle Point Credit news, CFO Kenneth P. Onorio acquired 1,696 shares of the stock in a transaction on Thursday, September 1st. The shares were purchased at an average price of C$17.75 per share, for a total transaction of C$30,104.00. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.65% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ECC. Freestone Capital Holdings LLC acquired a new position in Eagle Point Credit during the second quarter valued at $2,174,000. National Asset Management Inc. purchased a new stake in Eagle Point Credit during the second quarter valued at about $261,000. Mycio Wealth Partners LLC raised its stake in Eagle Point Credit by 0.5% in the second quarter. Mycio Wealth Partners LLC now owns 1,378,743 shares of the investment management company’s stock valued at $22,198,000 after buying an additional 6,590 shares during the last quarter. Bessemer Group Inc. raised its stake in Eagle Point Credit by 54.1% in the first quarter. Bessemer Group Inc. now owns 8,427 shares of the investment management company’s stock valued at $139,000 after buying an additional 2,959 shares during the last quarter. Finally, Bard Associates Inc. raised its stake in Eagle Point Credit by 0.3% in the second quarter. Bard Associates Inc. now owns 112,704 shares of the investment management company’s stock valued at $1,815,000 after buying an additional 334 shares during the last quarter. Hedge funds and other institutional investors own 70.31% of the company’s stock.
About Eagle Point Credit
Eagle Point Credit Company Inc is a non-diversified, closed-end management investment company. The Company’s primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation. The Company invests primarily in equity and junior debt tranches of collateralized loan obligations (CLOs).
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