Eagle Point Credit (NYSE:ECC) Trading Down 5.6% – Should You Sell?

Eagle Point Credit Company Inc. (NYSE:ECC) fell 5.6% on Tuesday . The stock traded as low as $4.63 and last traded at $4.6150. 2,428,809 shares changed hands during mid-day trading, an increase of 17% from the average session volume of 2,079,217 shares. The stock had previously closed at $4.89.

Analyst Ratings Changes

Several analysts have issued reports on the stock. Zacks Research raised shares of Eagle Point Credit from a “strong sell” rating to a “hold” rating in a report on Tuesday, December 16th. B. Riley Financial reduced their target price on Eagle Point Credit from $10.00 to $7.00 and set a “buy” rating on the stock in a research note on Thursday, November 20th. Finally, Credit Suisse Group set a $7.00 price target on Eagle Point Credit in a research report on Thursday, November 20th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $7.46.

Eagle Point Credit Trading Down 6.2%

The stock’s 50 day moving average price is $5.72 and its 200 day moving average price is $6.28. The company has a market cap of $579.22 million, a price-to-earnings ratio of 24.13 and a beta of 0.28.

Eagle Point Credit Announces Dividend

The company also recently declared a monthly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Wednesday, March 11th will be paid a dividend of $0.14 per share. The ex-dividend date is Wednesday, March 11th. This represents a c) annualized dividend and a yield of 36.6%. Eagle Point Credit’s dividend payout ratio is currently 884.21%.

Institutional Trading of Eagle Point Credit

Institutional investors and hedge funds have recently bought and sold shares of the business. GPS Wealth Strategies Group LLC acquired a new position in Eagle Point Credit during the second quarter valued at approximately $25,000. IFP Advisors Inc purchased a new stake in Eagle Point Credit during the 2nd quarter worth $28,000. N.E.W. Advisory Services LLC increased its holdings in Eagle Point Credit by 100.0% in the 4th quarter. N.E.W. Advisory Services LLC now owns 5,300 shares of the investment management company’s stock valued at $31,000 after purchasing an additional 2,650 shares in the last quarter. Ameriflex Group Inc. purchased a new position in Eagle Point Credit in the third quarter valued at about $33,000. Finally, Geneos Wealth Management Inc. acquired a new position in shares of Eagle Point Credit during the second quarter worth about $33,000. Institutional investors and hedge funds own 19.50% of the company’s stock.

Eagle Point Credit Company Profile

Eagle Point Credit Company is a closed-end, non-diversified management investment company that seeks to generate attractive risk-adjusted returns primarily through investments in collateralized loan obligations (CLOs) and related structured credit instruments. The firm is externally managed by Eagle Point Credit Management, LLC, a specialized credit asset manager focused on the structured credit markets. Eagle Point Credit Company’s shares trade on the New York Stock Exchange under the ticker symbol ECC.

The company’s investment strategy centers on acquiring both equity and debt tranches of actively managed CLOs alongside opportunistic positions in senior secured loans, high-yield bonds and credit derivatives.