Eagle Point Credit Co. (ECC) Stock Rating Reaffirmed by National Securities
Eagle Point Credit Co. (NYSE:ECC)‘s stock had its “buy” rating restated by analysts at National Securities in a research note issued on Wednesday. They currently have a $24.00 price target on the investment management company’s stock.
The analysts wrote, “3Q16 Recap: Eagle Point Credit Company (ECC) reported NII/share of $0.54 in 3Q16 versus consensus estimates of $0.58 and our estimate of $0.60. The earnings miss was attributable to a lag on deployment of capital. During 2Q16 ECC raised $20.7 million of common equity and $25.0 million of debt and during 3Q16 an additional $3.4 million of common equity and $10.0 million of debt were raised. Most of the $52.2 million of gross new investments during the quarter closed towards the end of the quarter and we note that the company began to build up its loan accumulation facilities (LAF) during the quarter in order to form more primary issuance CLOs as the secondary market becomes less attractive due to significant loan price appreciation. The total portfolio at par increased to $499.4 million from $441.7 million in 2Q16 and we expect revenue growth to pick up significantly during 4Q16 as a result of the late closings of many of the investments during the quarter. The weighted average effective GAAP yield of the ECC’s CLO equity investments increased Q/Q to 17.27% from 17.03% as a result of new CLO equity investments made during the quarter having a weighted average effective yield of 20.16%. The company guided towards a special dividend of $0.75/share – $1.25/share to be paid in the latter part of 2017. We are adjusting our 2016 NII/share from $2.38 to $2.26 and are revising our 2017 NII/share estimate from $2.64 to $2.61. Our $24 price target implies an estimated 2017 Price/Net Investment Income (P/ NII) of 9.2x, dividend yield of 10.0%, and Price/Net Asset Value (P/NAV) of 1.40x. “
A number of other research firms have also weighed in on ECC. Deutsche Bank AG increased their price objective on Eagle Point Credit from $18.50 to $19.00 and gave the company a “buy” rating in a research note on Thursday, August 25th. Compass Point increased their price objective on Eagle Point Credit from $15.00 to $17.00 and gave the company a “neutral” rating in a research note on Thursday, August 25th. Finally, Zacks Investment Research lowered Eagle Point Credit from a “hold” rating to a “sell” rating in a research note on Monday, August 29th. Three research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. Eagle Point Credit presently has a consensus rating of “Buy” and an average target price of C$19.25.
Shares of Eagle Point Credit (NYSE:ECC) opened at 17.65 on Wednesday. Eagle Point Credit has a 52 week low of $13.30 and a 52 week high of $19.15. The company’s market cap is $266.90 million. The firm’s 50-day moving average is $16.82 and its 200-day moving average is $16.96.
The firm also recently declared a quarterly dividend, which was paid on Monday, October 31st. Investors of record on Friday, September 30th were paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 13.60%. The ex-dividend date was Wednesday, September 28th. Eagle Point Credit’s payout ratio is 79.73%.
In other Eagle Point Credit news, CFO Kenneth P. Onorio purchased 1,696 shares of the company’s stock in a transaction that occurred on Thursday, September 1st. The stock was bought at an average price of C$17.75 per share, with a total value of C$30,104.00. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.65% of the stock is owned by corporate insiders.
A number of hedge funds have recently made changes to their positions in ECC. Mycio Wealth Partners LLC raised its stake in shares of Eagle Point Credit by 0.4% in the third quarter. Mycio Wealth Partners LLC now owns 1,384,207 shares of the investment management company’s stock worth $23,753,000 after buying an additional 5,464 shares during the last quarter. Freestone Capital Holdings LLC purchased a new position in Eagle Point Credit during the second quarter worth about $2,174,000. Bard Associates Inc. increased its position 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 worth $1,815,000 after buying an additional 334 shares during the period. Finally, National Asset Management Inc. increased its position in Eagle Point Credit by 22.3% in the third quarter. National Asset Management Inc. now owns 19,764 shares of the investment management company’s stock worth $340,000 after buying an additional 3,606 shares during the period. 70.02% of the stock is owned by institutional investors.
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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