Eagle Point Credit (NYSE:ECC) Sets New 52-Week Low - Here's Why

Key Points

• Eagle Point Credit has reached a new 52-week low, with shares trading as low as $6.33 and recently at $6.42.
• Analysts have lowered their price target for the company, with Credit Suisse now forecasting a target price of $7.50.
• The company announced a dividend of $0.14 per share, resulting in an exceptionally high yield of 2,438.0% despite a negative dividend payout ratio.

Eagle Point Credit Company Inc. (NYSE:ECC - Get Free Report) reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $6.33 and last traded at $6.42, with a volume of 4271708 shares trading hands. The stock had previously closed at $6.82.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the stock. Credit Suisse Group set a $7.50 price objective on shares of Eagle Point Credit in a research note on Thursday, May 29th. Keefe, Bruyette & Woods dropped their price objective on shares of Eagle Point Credit from $9.00 to $7.50 and set a "market perform" rating on the stock in a research note on Thursday, May 29th.

Eagle Point Credit Trading Up 2.4%

The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.32. The stock's 50 day moving average price is $7.41 and its 200-day moving average price is $7.86. The stock has a market capitalization of $479.78 million, a P/E ratio of -15.56 and a beta of 0.38.

Eagle Point Credit (NYSE:ECC - Get Free Report) last released its quarterly earnings data on Wednesday, May 28th. The investment management company reported $0.28 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.26 by $0.02. The firm had revenue of $52.30 million for the quarter, compared to the consensus estimate of $53.54 million. Eagle Point Credit had a negative net margin of 27.15% and a positive return on equity of 12.90%. As a group, equities research analysts expect that Eagle Point Credit Company Inc. will post 1.1 earnings per share for the current year.

Eagle Point Credit Announces Dividend

The company also recently announced a dividend, which will be paid on Friday, August 29th. Shareholders of record on Tuesday, August 12th will be paid a $0.14 dividend. This represents a yield of 2,438.0%. The ex-dividend date is Monday, August 11th. Eagle Point Credit's dividend payout ratio (DPR) is -420.00%.

Institutional Investors Weigh In On Eagle Point Credit

Institutional investors have recently bought and sold shares of the company. AdvisorNet Financial Inc acquired a new stake in Eagle Point Credit in the first quarter valued at approximately $25,000. GPS Wealth Strategies Group LLC acquired a new stake in Eagle Point Credit in the second quarter valued at approximately $25,000. IFP Advisors Inc acquired a new stake in Eagle Point Credit in the second quarter valued at approximately $28,000. Cape Investment Advisory Inc. lifted its stake in shares of Eagle Point Credit by 91.2% during the first quarter. Cape Investment Advisory Inc. now owns 3,592 shares of the investment management company's stock worth $29,000 after buying an additional 1,713 shares during the period. Finally, NBC Securities Inc. acquired a new stake in shares of Eagle Point Credit during the first quarter worth $32,000. 19.50% of the stock is currently owned by institutional investors and hedge funds.

Eagle Point Credit Company Profile

Eagle Point Credit Company Inc is a closed ended fund launched and managed by Eagle Point Credit Management LLC. It invests in fixed income markets of the United States. The fund invests equity and junior debt tranches of collateralized loan obligations consisting primarily of below investment grade U.S.