Eagle Point Credit (NYSE:ECC) Downgraded by Zacks Research to Strong Sell

Key Points

• Zacks Research downgraded Eagle Point Credit (NYSE:ECC) from a "hold" to a "strong sell", joining other recent analyst moves including a Ladenburg Thalmann downgrade and lowered price targets from Credit Suisse and B. Riley.
• Shares opened at $3.96 (down ~5.4%), trading near the 52‑week low of $3.85 with a market cap of about $499.6M; the consensus analyst rating remains "Hold" with a $7.13 average target price.
• Eagle Point Credit is a closed‑end investment company focused on investments in collateralized loan obligations (CLOs) and related structured credit instruments.

Eagle Point Credit (NYSE:ECC - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Tuesday,Zacks.com reports.

ECC has been the topic of a number of other reports. LADENBURG THALM/SH SH downgraded Eagle Point Credit from a "buy" rating to a "neutral" rating in a report on Monday, March 2nd. Credit Suisse Group set a $5.00 price objective on Eagle Point Credit in a research note on Wednesday, February 18th. Finally, B. Riley Financial dropped their price objective on Eagle Point Credit from $10.00 to $7.00 and set a "buy" rating on the stock in a research report on Thursday, November 20th. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $7.13.

Eagle Point Credit Stock Down 5.4%

Shares of NYSE:ECC opened at $3.96 on Tuesday. The company has a market capitalization of $499.64 million, a price-to-earnings ratio of 20.82 and a beta of 0.32. Eagle Point Credit has a 52 week low of $3.85 and a 52 week high of $8.35. The firm has a 50 day moving average of $4.98 and a 200 day moving average of $5.88.

Hedge Funds Weigh In On Eagle Point Credit

A number of large investors have recently made changes to their positions in ECC. Geneos Wealth Management Inc. acquired a new stake in shares of Eagle Point Credit in the 2nd quarter worth $33,000. Ameriflex Group Inc. acquired a new position in Eagle Point Credit during the 3rd quarter valued at about $33,000. N.E.W. Advisory Services LLC raised its stake in Eagle Point Credit by 100.0% in the fourth quarter. N.E.W. Advisory Services LLC now owns 5,300 shares of the investment management company's stock valued at $31,000 after buying an additional 2,650 shares during the last quarter. Spire Wealth Management purchased a new stake in Eagle Point Credit in the third quarter valued at about $37,000. Finally, Royal Bank of Canada boosted its holdings in Eagle Point Credit by 135.5% in the fourth quarter. Royal Bank of Canada now owns 5,600 shares of the investment management company's stock worth $32,000 after acquiring an additional 3,222 shares in the last quarter. 19.50% of the stock is owned by institutional investors and hedge funds.

About Eagle Point Credit

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.

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