Eagle Point Credit (NYSE:ECC) Share Price Passes Above 50-Day Moving Average - Here's What Happened

Key Points

• Eagle Point Credit shares rose above their 50-day moving average, reaching $3.82 before closing at $3.81, compared with the moving average of $3.77.
• Analyst sentiment remains moderately positive, with a consensus “Moderate Buy” rating and a $6.50 price target. Zacks Research recently upgraded the stock from “Strong Sell” to “Hold.”
• The company reported quarterly EPS of $0.17, below the $0.18 estimate, while revenue of $37.9 million also missed expectations. Eagle Point Credit declared a $0.06 monthly dividend, representing an annualized yield of approximately 18.9%.

Eagle Point Credit Company Inc. (NYSE:ECC - Get Free Report) passed above its fifty day moving average during trading on Thursday . The stock has a fifty day moving average of $3.77 and traded as high as $3.82. Eagle Point Credit shares last traded at $3.81, with a volume of 447,796 shares changing hands.

Analysts Set New Price Targets

Separately, Zacks Research upgraded Eagle Point Credit from a "strong sell" rating to a "hold" rating in a research note on Friday, May 1st. Three research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $6.50.

Eagle Point Credit Stock Down 0.3%

The company has a current ratio of 0.23, a quick ratio of 0.23 and a debt-to-equity ratio of 0.02. The stock has a market cap of $503.72 million, a P/E ratio of 6.25 and a beta of 0.36. The firm has a 50-day simple moving average of $3.77 and a two-hundred day simple moving average of $3.97.

Eagle Point Credit (NYSE:ECC - Get Free Report) last announced its earnings results on Thursday, August 13th. The investment management company reported $0.17 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.18 by ($0.01). Eagle Point Credit had a negative net margin of 84.29% and a negative return on equity of 1.74%. The business had revenue of $37.90 million during the quarter, compared to the consensus estimate of $41.62 million. Equities research analysts expect that Eagle Point Credit Company Inc. will post 0.68 earnings per share for the current fiscal year.

Eagle Point Credit Announces Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Friday, December 11th will be issued a $0.06 dividend. The ex-dividend date of this dividend is Friday, December 11th. This represents a c) dividend on an annualized basis and a yield of 18.9%. Eagle Point Credit's payout ratio is currently 209.84%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Geneos Wealth Management Inc. bought a new position in Eagle Point Credit during the 2nd quarter worth $33,000. N.E.W. Advisory Services LLC grew its holdings in shares of Eagle Point Credit by 100.0% during the 4th quarter. N.E.W. Advisory Services LLC now owns 5,300 shares of the investment management company's stock worth $31,000 after purchasing an additional 2,650 shares in the last quarter. Royal Bank of Canada grew its holdings in shares of Eagle Point Credit by 135.5% during the 4th quarter. Royal Bank of Canada now owns 5,600 shares of the investment management company's stock worth $32,000 after purchasing an additional 3,222 shares in the last quarter. CoreCap Advisors LLC increased its position in shares of Eagle Point Credit by 80.8% in the second quarter. CoreCap Advisors LLC now owns 6,716 shares of the investment management company's stock worth $25,000 after purchasing an additional 3,001 shares during the period. Finally, TCTC Holdings LLC raised its stake in Eagle Point Credit by 45.5% in the fourth quarter. TCTC Holdings LLC now owns 8,000 shares of the investment management company's stock valued at $46,000 after purchasing an additional 2,500 shares in the last quarter. Institutional investors and hedge funds own 19.50% of the company's stock.

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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